CCM10385 - Penalties and Interest: Appeals against a Penalty

It is important to remember that an appeal against a penalty can only be made if a formal penalty determination has been issued.

If you are trying to get a letter of offer and the claimant states they want to appeal against a penalty you will need to inform the claimant that as a formal determination has not been made they cannot at this stage appeal against the penalty. The 94NTC is not a formal determination.

You should find out from the claimant why they want to appeal and discuss the position fully in an attempt to resolve the situation. Explain our preferred method of settlement in a case involving penalties is by way of a legally binding and enforceable contract. If however you cannot resolve the situation and the claimant insists they still wish to appeal against the penalty the file will have to be referred to the Claimant Compliance Deputy Director, Business Development, via your CCGM for consideration of a formal penalty determination. CCM8640 and CCM14440 refers. The claimant should be informed that when a formal penalty determination is issued they will then have the right to appeal against the penalty.

Consideration will have to be given separately to the overpayment and any interest due.