(1)Section 98 of the Taxes Management Act 1970 (special returns, informationetc.) shall be amended as follows.
(2)In subsection (1) (initial and daily penalties)—
(a)for the word “Where” there shall be substituted the words “Subjectto section 98A below, where”, and
(b)for the words “subsection (3)” onwards there shall be substituted thewords “subsections (3) and (4) below—
(i)to a penalty not exceeding £300, and
(ii)if the failure continues after a penalty is imposed under paragraph (i)above, to a further penalty or penalties not exceeding £60 for each dayon which the failure continues after the day on which the penalty underparagraph (i) above was imposed (but excluding any day for which a penaltyunder this paragraph has already been imposed).”
(3)In subsection (2) (maximum penalty for information given fraudulently ornegligently)—
(a)for the word “Where” there shall be substituted the words “Subjectto section 98A below, where”, and
(b)for the words “ £250, or, in the case of fraud, £500”there shall be substituted “ £3,000”.
(4)The following subsections shall be substituted for subsection (3)—
“(3)No penalty shall be imposed under subsection (1) above in respect of afailure within paragraph (a) of that subsection at any time after the failurehas been remedied.
(4)No penalty shall be imposed under paragraph (ii) of subsection (1) abovein respect of a failure within paragraph (b) of that subsection at any timeafter the failure has been remedied.”
(5)In the Table—
(a)in the first column, in the entry relating to Part III of the M1Taxes Management Act 1970, the words “, except sections 16 and 24(2)” shall be omitted;
(b)the entries relating to sections 38(5) and 42 of the Taxes Act 1988 shallbe moved from the second column to the appropriate place in the first column;and
(c)the entry relating to section 481(5)(k) of that Act shall be omitted fromthe first column and an entry relating to section 482(2) of that Act shall beinserted at the appropriate place in the second column.
(6)In consequence of the amendment made by subsection (5)(a) above section16(6) of the Taxes Management Act 1970 shall cease to have effect.
(7)This section shall apply in relation to—
(a)any failure to comply with a notice or to furnish information, give acertificate or produce a document or record beginning on or after the day onwhich this Act is passed, and
(b)the furnishing, giving, producing or making of any incorrect information,certificate, document, record or declaration on or after that day.