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HMRC internal manual

Oil Taxation Manual

PRT: penalties - amount of penalty: responsible person

Where the responsible person is not a participator in the field, and he either delivers an incorrect return or makes an incorrect statement or declaration in connection with an expenditure claim, the maximum penalty in the case of negligence is £2,500, and in the case of fraud is £5,000: OTA75\SCH2\PARA8(3).

Where the responsible person is a participator in the field, and he either delivers an incorrect return under OTA75\SCH2\PARA5 or makes an incorrect statement or declaration in connection with an expenditure claim, the maximum penalty is the greater of the fixed penalty in OTA75\SCH2\PARA8(3) and the tax-geared penalty given by the table in OT18785. Bear in mind that only the participator’s own tax is included in the calculation, and not that relating to other participators.

Up to 1995 HMRC’s view was that only the fixed penalty was due, although in practice this made little difference in the cases dealt with up to then.