Taxes Management Act 1970 section 98B

European Economic Interest Groupings

Section 98B sets out the penalty regime that applies when a European Economic Interest Grouping or one of its members fails to comply with a notice to file a return, or files an incorrect return.

• A grouping or member that fails to file a required return faces an initial penalty of up to £300 multiplied by the number of members in the grouping at the time of the failure.
• If the failure continues after a tribunal direction, a further daily penalty of up to £60 multiplied by the number of members may be imposed for each day the default persists.
• Where the grouping or member can show there was no income or chargeable gain to report, the total penalty is capped at £100.
• A fraudulent or negligent incorrect return attracts a penalty of up to £3,000 multiplied by the number of members at the time of filing.