Section 61V — Income Tax (Earnings and Pensions) Act 2003: Consequences of providing fraudulent information

Consequences of providing fraudulent information 61V 1 Subsection (2) applies if in any case—

a a person (“the deemed employer”) would, but for this section, be treated by section 61N(3) as making a payment to another person (“the services-provider”),

and b the fraudulent documentation condition is met.

2 Section 61N(3) has effect in the case as if the reference to the fee-payer were a reference to the relevant person (or if more than one, the first relevant person) in relation to whom the fraudulent documentation condition is met , but—

a section 61N(4) continues to have effect as if the reference to the fee-payer were a reference to the deemed employer, and b Step 1 of section 61Q(1) continues to have effect as referring to the chain payment made by the deemed employer.

3 Subsection (2) has effect even though that may involve a services-provider being treated as both employer and employee in relation to the deemed employment under section 61N(3). 4 “The fraudulent documentation condition” is that a relevant person provided any person with a fraudulent document intended to constitute evidence—

a that the case is not an engagement to which this Chapter applies, or b that none of conditions A to C in section 61N is met in the case. 4A But where the fraudulent documentation condition would (ignoring this subsection) be met as a result of the provision of a fraudulent document intended to constitute evidence that section 61Y (umbrella companies) applies in relation to the services provided by the worker, that condition is to be treated as not met.

5 A “relevant person” is—

a the services-provider;

b a person connected with the services-provider;

c if the intermediary in the case is a company, an office-holder in that company;

d a person in the chain who is resident in the United Kingdom or has a place of business in the United Kingdom.