Taxation (International and Other Provisions) Act 2010 section 31

Meaning of "deliberate inaccuracy that is concealed" and discovering inaccuracy after return submitted

Section 31 explains what constitutes a concealed deliberate inaccuracy in an interest restriction return and sets out what happens when an inaccuracy is discovered after the return has been submitted.

• A deliberate inaccuracy is treated as concealed if the company takes active steps to hide it, such as submitting false supporting evidence.
• If an inaccuracy in an interest restriction return was neither careless nor deliberate when the return was originally submitted, it may still be reclassified.
• Reclassification as a careless inaccuracy occurs if the company (or someone acting on its behalf) later discovers the error but fails to take reasonable steps to notify HMRC.
• The obligation to inform HMRC applies equally whether the inaccuracy is discovered by the company itself or by a person acting on the company's behalf.