Penalties
The General Commissioners have the power under Regulation 10(3)
to impose penalties for failure to comply with a Regulation 10
notice.
The Commissioners impose the penalties summarily.
The initial maximum penalty is £300 then a maximum daily
penalty of £60 per day for a continuing failure.
Once proceedings have commenced, it remains in the
Commissioners’ power to award a penalty if they see fit, even
if the taxpayer complies fully with the Regulation 10 notice.
Where a Commissioners’ meeting is arranged to receive any particulars or documents and you intend to mention penalties, you will have to inform all parties in advance. You must tell the taxpayer, his agent and the Clerk to the Commissioners of your intentions.
If there is a failure to comply with a notice, do not attempt to
advise the Commissioners on the course they should take. You are,
however, entitled to remind the Commissioners, or to ask their
Clerk to remind them, that such failure can incur a penalty and
that they are empowered to impose the penalty summarily as soon as
the failure has occurred.
To ensure that the Commissioners can justify any penalty
awarded you should provide them with a brief account (preferably in
writing) of the matter and, where appropriate, any documentary
evidence, for example, copies of letters sent but unanswered.
The Commissioners’ attention can be drawn to any
features that might lead them to a determination of the appeal in
preference to imposing a penalty in respect of the taxpayer’s
non-compliance.
If the taxpayer is present at the meeting at which the failure to comply with the notice is established and the question of penalties is considered, the minutes will record the fact that the taxpayer is aware of what action, if any, was taken. The Commissioners may allow the taxpayer some further time before acting summarily to determine a penalty.
If the taxpayer fails to comply with the notice and does not attend the meeting on a date by which the time allowed by the notice has expired, it rests with the Commissioners to decide whether to:
When the Commissioners impose an initial penalty for failure to
comply with a notice, ask the Clerk to remind the taxpayer that a
further penalty may be imposed if the failure continues.
When a penalty is imposed arrange for the appropriate form of
certificate to be completed in triplicate.
The three copies of form 82G are to be signed by the
Commissioners and dealt with as follows:
For partnership cases in England, Wales and N. Ireland prepare
the certificate, form 82G, in the name of the partner or, if more
than one, separate partners upon whom the Regulation 10 notice was
served. Any penalty for non-compliance lies with the person or
persons and not against the partnership firm as such. The above
need not necessarily apply in Scotland where a partnership is a
separate legal entity.
See AH3855 regarding collection of the penalty.
