AH3850 - Penalty Proceedings: Proceedings under TMA70/S100C: award of penalty

Before the meeting to which the taxpayer is summoned prepare the certificate of award of initial penalty (82C(New),82L, 82C(EC) or equivalent) in triplicate, leaving blank the space provided for the amount of the penalty. The certificate of award of penalties relates to one year only, so where the proceedings cover more than one year prepare separate forms for each year.

The Inspector who signed the information laid before the Commissioners should be present at the hearing. You should limit yourself to giving evidence of the issue of any notice and of the fact that the required information etc has not been received. You should also be ready to make available any information that might help the Commissioners to fix an amount of penalty likely to induce compliance by the taxpayer. There is no reason why (if so requested by the Commissioners) you should not offer an opinion as to the amount of the penalty most likely to achieve this purpose.

Taxpayer Present

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.

Taxpayer Absent

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:

• allow the taxpayer further time in which to comply with the notice and instruct the Clerk to give the taxpayer written warning of the consequence of failure or
• impose a penalty.

The imposition of penalties in the absence of the taxpayer has been a common occurrence in the High Court.

Certificate of award of penalty

Details of any penalty awarded by the Commissioners should be entered on the three copies of form 82C(New), 82L, 82C(EC) etc all of which should be signed by two Commissioners.

The forms should be dealt with as follows

• one copy given or sent to the taxpayer.
• one copy retained by the Clerk
• one copy kept in the taxpayer’s file.

No penalty awarded by the Commissioners may be reduced by the Inspector.