CH72540 - Penalties for Failure to Notify: Calculating the penalty: Introduction
The penalty for failure to notify, see CH71220, is based on the amount of tax or duty unpaid or tax the person is liable for because of the failure. This is the potential lost revenue, or PLR, see CH72620. You work out the amount of the penalty by applying an appropriate percentage to the PLR depending on whether the failure to notify is
- deliberate and concealed, see CH72120
- deliberate but not concealed, see CH72160, or
- non-deliberate, see CH72200.
The maximum penalty is
|
Type of failure |
Maximum penalty payable |
|
Deliberate and concealed |
100% of PLR |
|
Deliberate not concealed |
70% of PLR |
|
Non-deliberate |
30% of PLR |
You may reduce the penalty depending on the quality of the disclosure, see CH73220. The reduction may be restricted to a minimum amount, CH73200.
