Income Tax Act 2007 section 257PD

Penalties for fraudulent certificate or statement etc

Section 257PD imposes financial penalties on social enterprises that issue incorrect or improper compliance certificates or statements in connection with social investment tax relief.

• A social enterprise 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 257PC(3) or (4).
• A compliance certificate is a document issued by the investee enterprise to the individual investor, confirming that the requirements for social investment tax relief have been met so far (excluding requirements that must be met by the individual).
• The compliance certificate must be in a form prescribed by HMRC.