9 Penalty for failure to comply with section 2 (3)(a) or 3 (6)(b).

(1) Where an individual, being an individual to whom section 2 applies, or a person to whom section 3 applies—

(a) (i) has knowingly or wilfully failed to comply with any provision of the Acts requiring—

(I) the furnishing of a return of income, profits or gains, or of sources of income, profits or gains, for the purposes of any tax,

(II) the furnishing of any other return, certificate, notification, particulars, or any statement or evidence, for the purposes of any tax, or

(ii) has knowingly or wilfully delivered any incorrect return, statement or accounts or knowingly or wilfully furnished any incorrect information in connection with any tax,

in respect of the relevant period, and

(b) (i) fails to give a declaration required by section 2 (3) (a), or

(ii) gives such a declaration as aforesaid or a declaration under section 3 (6) (b) which is false or fails to comply with the requirements of subparagraph (iii) or (iv) of the said section 2 (3) (a) or subparagraph (III) of the said section 3 (6) (b) to the extent that any of the said subparagraphs apply to him,

he shall, without prejudice to any other penalty to which he may be liable, be guilty of an offence and shall be liable—

(I) on summary conviction where the amount of the specified difference is—

(A) less than £1,200, to a fine not exceeding 25 per cent. of the amount of the specified difference or, at the discretion of the court, to a term of imprisonment not exceeding 12 months or to both,

(B) equal to or greater than £1,200, to a fine not exceeding £1,200 or, at the discretion of the court, to a term of imprisonment not exceeding 12 months or to both,

or

(II) on conviction on indictment where the amount of the specified difference is—

(A) less than £5,000, to a fine not exceeding 25 per cent. of the amount of the specified difference or, at the discretion of the court, to a term of imprisonment not exceeding 2 years or to both,

(B) equal to or greater than £5,000 but less than £10,000, to a fine not exceeding 50 per cent. of the amount of the specified difference or, at the discretion of the court, to a term of imprisonment not exceeding 3 years or to both,

(C) equal to or greater than £10,000 but less than £25,000, to a fine not exceeding the amount of the specified difference or, at the discretion of the court, to a term of imprisonment not exceeding 4 years or to both,

(D) equal to or greater than £25,000 but less than £100,000, to a fine not exceeding twice the amount of the specified difference or, at the discretion of the court, to a term of imprisonment not exceeding 8 years or to both,

(E) equal to or greater than £100,000, to a fine not exceeding twice the amount of the specified difference and to a term of imprisonment not exceeding 8 years.

(2) Subsections (4), (6), (7) and (8) of section 94 of the Finance Act, 1983, shall, with any necessary modifications, apply and have effect for the purposes of this section as they apply and have effect for the purposes of that section.

(3) In this section—

“the Acts” and “tax” have the meanings assigned to them, respectively, by section 2 or 3, as appropriate;

“the specified difference” means the difference between—

(a) the amount of tax payable for the relevant period by the individual, and

(b) the amount which would have been so payable if—

(i) any return, certificate, notification or particulars or any statement of evidence, referred to in subsection (1) (a) (i), not furnished by him, had, in fact, been so furnished and the details therein had been correct, or

(ii) any incorrect return, statement or accounts, or any incorrect information, referred to in subsection (1) (a) (ii), in connection with any tax had, in fact, been correct.