A penalty not exceeding £30 a day can be determined by
an officer of Revenue & Customs for continuing failure to
comply with a notice issued under TMA70/S19A, TMA70/SCH 1A/PARA
6(2) or (3A)(b) or FA98/SCH18/Para 27(see EM4706). A daily penalty
in excess of £30 can only be awarded by the Commissioners
under TMA70/S100C.
Under TMA70/S100C an officer of Revenue & Customs,
authorised to do so, may commence proceedings before the General or
Special Commissioners for the award of a penalty of up to £150
per day. The authorisation made by Commissioners for HMRC covers
all Inspectors (see EM5324).
No penalty can be imposed in respect of a failure at any time
after the failure has been remedied. This applies to both the
initial and daily penalties.
In the case of a partnership where the nominated partner
fails to comply with a Section 19A notice, a penalty can be imposed
only on the nominated partner (or successor). The other partners
cannot be liable to a penalty in respect of the nominated partner's
failure.
Before seeking daily penalties in excess of £30 for
failure to comply with an SA information notice, you should first
seek the agreement of your Area Director (Compliance). If your Area
Director (Compliance) agrees the proposed action they must record
this in writing in your papers. You should then make a full report
with your file in accordance with EM4707.
Penalty action under Section 100C must only be taken with the
approval of that office because any appeal against the penalty is
direct to the High Court. If approval is given full details will be
provided on the action that is required for commencement of
proceedings before the Commissioners.
Guidance on initial and daily penalty determinations under
TMA70/S100 is at EM4700+.
Guidance on penalty action under Section 100C is at
AH3820.
