Oil Taxation Act 1975 Schedule 2 paragraph 9

Incorrect returns, accounts, etc.

Paragraph 9 of Schedule 2 deals with penalties that apply when a participator in an oil field submits incorrect returns, accounts or other documents for petroleum revenue tax purposes.

• If a participator delivers an incorrect return, account, statement or other document to HMRC for PRT purposes, they may be liable to a penalty.
• The penalty applies where the document contains a material inaccuracy, whether due to fraud, negligence or innocent error, though the consequences differ depending on the reason.
• Following amendments introduced by Finance Act 2008, the penalty regime for inaccuracies in PRT documents was aligned with the wider penalty framework for incorrect returns under Schedule 40 of that Act, which took effect from 1 April 2009.
• The updated rules replaced earlier penalty provisions with a more structured approach based on the nature of the inaccuracy and the behaviour that led to it, ranging from careless errors to deliberate and concealed inaccuracies.