Section 481
Section 481: failure to comply with a direction of special audit or valuation
Section 481 criminalises a wilful failure to comply with a direction issued under section 268(5) of the Act - which relates to a direction for special audit or valuation. It carries a single, non-graded punishment.
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What Section 481 says
"If a person wilfully fails to comply with a direction issued to him under section 268(5), he shall be punishable with simple imprisonment for a term up to six months, or with fine, or with both."
Note on an earlier version of this section
The Act's footnotes record that this section (along with section 480) was substituted by the Finance Act, 2026, with effect from 1 April 2026. Before that substitution, the equivalent provision was titled "Failure to produce accounts and documents" and covered a wilful failure to produce, or cause to be produced, accounts and documents referred to in a notice served under section 268(1) by the date specified in that notice, or a wilful failure to comply with a direction under section 268(5) - punishable with rigorous imprisonment for a term which may extend to one year and with fine.
Frequently asked questions
What conduct does Section 481 punish?
A wilful failure to comply with a direction issued under section 268(5) - a special audit or valuation direction.
What is the punishment under Section 481?
Simple imprisonment for a term up to six months, or with fine, or with both.
Related sections
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Talk to our tax team about a special audit directionLast updated 9 September 2026