Section 79
Penalty for making incorrect return
(1)
Every person who without reasonable excuse —
(a)
makes an incorrect return by omitting or understating any income of which he is required by this Act to make a return; or
(b)
gives any incorrect information in relation to any matter or thing affecting his own liability to tax or the liability of any other person or of a partnership, is guilty of an offence and liable on conviction to a fine of $10,000 and double the amount of tax which has been undercharged in consequence of such incorrect return or information, or would have been so undercharged if
Income Tax
B.L.R.O. 1/2024 121
the return or information had been accepted as correct, and in default of payment to imprisonment for 12 months.
(2)
Every person who without reasonable excuse or through negligence —
(a)
makes an incorrect return by omitting or understating any income of which he is required by this Act to make a return; or
(b)
gives any incorrect information in relation to any matter affecting his own liability to tax or the liability of any other person or of a partnership, is guilty of an offence for which, on conviction, he shall pay a penalty equal to double the amount of tax which has been undercharged in consequence of such incorrect return or information, or which would have been so undercharged if the return or information had been accepted as correct, and shall also be liable to a fine not exceeding $5,000, imprisonment for a term not exceeding 12 months or both.
(3)
The Collector may compound any offence against this section, and may, before judgment, stay or compound any proceedings thereunder:
Provided that any proceedings commenced at the instance of or with the sanction of the Public Prosecutor shall not be stayed or compounded without the consent of the Public Prosecutor.