Value-Added Tax Act, 1972

Fraudulent returns, etc.

27.—(1) Where a person fraudulently or negligently, for the purposes of this Act or of regulations, produces, furnishes, gives, sends or otherwise makes use of, any incorrect return, invoice, credit note, debit note, receipt, account, voucher, bank statement, estimate, statement, information, book, document, record or declaration, he shall, subject to subsection (2), be liable to a penalty of—

(a) £100, and

(b) the amount, or, in the case of fraud, twice the amount of the difference between the amount of tax paid by such person for the period in question and the amount of tax properly payable by him if the said return, invoice, credit note, debit note, receipt, account, voucher, bank statement, estimate, statement, information, book, document, record or declaration had been correct.

(2) Where a person mentioned in the foregoing subsection is a body of persons—

(a) the reference in paragraph (a) of that subsection to £100 shall be construed as a reference to £500, or, in the case of fraud, £1,000, and

(b) the secretary shall be liable to a separate penalty of £100, or, in the case of fraud, £200.

(3) Where any such return, invoice, credit note, debit note, receipt, account, voucher, bank statement, estimate, statement, information, book, document, record or declaration as is mentioned in subsection (1) was made or submitted by a person neither fraudulently nor negligently and it comes to his notice (or, if he has died, to the notice of his personal representative) that it was incorrect, then, unless the error is remedied without unreasonable delay, the return, invoice, credit note, debit note, receipt, account, voucher, bank statement, estimate, statement, information, book, document, record or declaration shall be treated for the purposes of this section as having been negligently made or submitted by him.

(4) If a person, in a case in which he represents that he is a registered person or is a manufacturer of certain goods or uses a registration number allotted under section 9, improperly procures the importation of goods without payment of tax in circumstances in which tax is chargeable, he shall be liable to a penalty of £500, and, in addition, he shall be liable to pay to the Revenue Commissioners the amount of any tax which should have been paid on importation.

(5) A person who fraudulently or negligently—

(a) issues an invoice in which an amount of tax is stated, in such circumstances that the said amount does not represent the amount of tax which becomes due by him in respect of the transaction to which the invoice relates, or

(b) issues a credit note showing an amount of tax other than that properly applicable to the transaction to which the credit note relates,

shall be liable to a penalty of £100 in addition to his liability under section 17 (5) in respect of the issue of any such invoice or credit note.

(6) Notwithstanding anything in section 30, proceedings for the recovery of any penalties under this section shall not be out of time by reason that they are commenced after the time allowed by the said section 30.

(7) For the purposes of this section, any return, invoice, credit note, debit note, receipt, account, voucher, bank statement, estimate, statement, information, book, document, record or declaration submitted on behalf of a person shall be deemed to have been submitted by that person unless he proves that it was submitted without his consent or knowledge.

(8) Any reference in the foregoing subsections to an amount of tax includes a reference to interest payable in the case in question under section 21.