The conditions must be SMART
Specific - directly related to the business or individual being penalised and the actions they must take.
Measurable - in order to have a penalty cancelled the person needs to be able to demonstrate that conditions have been met.
Achievable - the person must be able to meet the conditions.
Realistic - conditions cannot be imposed that are unrealistic (for example, a condition that a business employ a full time resource may be unreasonable for a small business with few business transactions).
Time bound - the conditions must be met by a certain date. The period of suspension cannot exceed 2 years.
Penalties cannot be suspended before they have been assessed. The notice to suspend the penalty must be in writing and must include details of the following
- what part of the penalty is to be suspended
- the period of suspension (not more than two years)
- the conditions of suspension and
- how compliance with the conditions is to be evidenced.
For further information on suspension of a penalty and some examples please see the guidance at CH83100.