After regulation 8A of the principal Regulations there shall be inserted—
(8B)
(1) This regulation applies in any case where an amount to which a borrower is not entitled is paid to him by the Board pursuant to a claim under regulation 8A.
(2) An officer of the Board may make such assessments as may in his judgment be required for recovering that amount from the borrower.
(3) The Taxes Management Act 1970 shall apply to an assessment under paragraph (2) as if it were an assessment to income tax for the year of assessment for which the payment was made and as if—
(a) the assessment were among those specified in section 55(1) of that Act (recovery of tax not postponed) ;
(b) the assessment were made for the purpose of making good to the Crown a loss of tax wholly attributable to such a failure or error as is mentioned in section 88(1) of that Act (interest on tax recovered to make good loss due to taxpayer’s fault) ; and
(c) for the purposes of section 88 of that Act the date when the tax ought to have been paid were the 1st December following the year of assessment.
(4) If in a case to which paragraph (1) applies, the borrower fraudulently or negligently makes any false statement or representation in connection with the making of a claim under regulation 8A, he shall be liable to a penalty not exceeding the amount referred to in that paragraph.
(5) If in a case to which paragraph (1) applies, the borrower is required to give notice under subsection (1) of section 375 of the Income and Corporation Taxes Act 1988 , and there is any unreasonable delay in the giving of the notice, he shall be liable to a penalty not exceeding so much of the amount referred to in that paragraph as is attributable to that delay.
