Value Added Tax Act 1994 section 29

Penalties for errors: disclosure

Section 29 explains how correcting errors on a special scheme return filed with another member state's tax authorities counts as disclosure to HMRC for the purpose of reducing penalties.

• If a person corrects a special scheme return by telling the administering member state's tax authorities about an inaccuracy, false information, or withheld information, this is treated as telling HMRC.
• The disclosure is recognised for the purposes of the penalty reduction rules in paragraph 9 of Schedule 24 to the Finance Act 2007.
• This means that voluntary disclosure to another member state's tax authorities can lead to reduced penalties, just as if the disclosure had been made directly to HMRC.
• The provision covers all three types of error: inaccuracies in the return, supplying false information, and withholding information that should have been provided.