False or misleading statements

—(1) A person who makes a statement to a tax officer that is false or misleading in a material particular is liable to a penalty under this section if an amount properly payable by, or refundable to, the person under this Act exceeds, or is less than, the amount that would be payable or refundable if the person were assessed on the basis that the statement were true. (2) The amount of the penalty for which the person is liable is the greater of two hundred and fifty dollars andTax Administration and Procedure CAP. 51 85 (a) if an amount payable by the person would have been less, if it were determined on the basis of the information provided in the statement, the amount by which that amount would have been so reduced; or (b) if the amount of a refund that the person applied for would be increased, if it were determined on the basis of the information provided in the statement, the amount by which that amount would have been so increased. (3) No penalty shall be imposed under this section if the person who made the statement did not know, and could not reasonably be expected to know, that the statement was false or misleading in a material particular. (4) A reference in this section to a statement made to a tax officer includes a reference to a statement made orally, in writing, or in another form to that officer acting in the performance of the officer’s duties under this Act, and includes a statement made– (a) in an application, certificate, declaration, notification, return, objection, or other document made, prepared, given, filed, lodged, or furnished under this Act; (b) in any information required to be furnished under this Act; (c) in a document furnished to a tax officer otherwise than pursuant to this Act; (d) in an answer to a question asked of a person by a tax officer; or 86 CAP. 51 Tax Administration and Procedure (e) to another person with the knowledge or reasonable expectation that the statement would be conveyed to a tax officer. (5) A reference in this section to a statement that is misleading in a material particular includes a reference to a statement that is so because of the omission of a matter or thing from the statement. (6) This section does not apply to conduct subject to the penalty under sections 88 or 91.