Cap. 406 Art. 37Administrative penalty for incorrect tax return.

(1) Saving the provisions of sub-article (2), when a tax return furnished by a person registered under article 10 for a tax period contains an understatement of the output tax or an overstatement of the deductions for that period, that person becomes liable to an administrative penalty in an amount equivalent to twenty per cent of the total of -

(a) the excess, if any, of the correct amount of output tax over the output tax as declared in the return; and

(b) the excess, if any, of the deductions as declared in the return over the correct amount of the deductions.

(2) Where a person corrects an understatement or overstatement as is referred to in sub-article (1) in accordance with the provisions of article 28(1) before he is served with a provisional assessment for that period, that person becomes liable to an administrative penalty in an amount equivalent to ten per cent of the total of -

(a) the excess, if any, of the correct amount of output tax over the output tax as declared in the return; and

(b) the excess, if any, of the deductions as declared in the return over the correct amount of the deductions.

(3) Where a tax return for a tax period furnished to the Commissioner by a person registered under article 10 who only supplies goods or services listed under Part One of the Fifth Schedule to this Act, does not contain a full and correct statement of the matters required to be declared by that person in that return and to the extent that that person does not correct such an understatement or overstatement in accordance with the provisions of article 28 before he is served with an assessment for that period he shall, unless that person has in virtue of that default become liable to a higher administrative penalty under the other provisions of this article, be liable to an administrative penalty of one hundred and fifty euro (€150).

(4) Where, during the course of an investigation, a person co-operates with the Commissioner, accepts an agreement and within one month from the signing of the agreement pays the amount of tax due, the agreed administrative penalty and the interest due, that person shall be liable to an administrative penalty in an amount equivalent to 10 per cent of the amount of tax due.