Income Tax Act 2007 section 207

Penalties for fraudulent certificate or statement etc.

Section 207 sets out the penalties that apply to an issuing company that provides fraudulent, negligent, or improperly issued compliance certificates or statements under the Enterprise Investment Scheme.

• An issuing company faces a penalty of up to £3,000 for issuing a fraudulent or negligent compliance certificate or compliance statement.
• The same maximum penalty applies where a compliance certificate is issued in breach of the conditions set out in section 204(3) or (4).
• The penalty covers both certificates and statements, ensuring that all forms of formal compliance documentation are subject to scrutiny.
• The provision is designed to deter companies from providing inaccurate or premature documentation that investors rely upon when claiming EIS income tax relief.