CH83170 - Penalties for Inaccuracies: How to Process the Penalty: Suspension of a penalty: Suspension period
You must check the date from which these rules apply for the tax or duty you are dealing with. See CH81011 for full details.
In suspending a penalty we aim to support and encourage the person’s future compliance. So it is important that the suspension period you set must be long enough to allow the person time to meet the suspension conditions, see CH83150. However, the period must not be more than two years from the date of the notice to suspend the penalty, see CH83180.
You should always establish the length of the suspension period as the time the person needs to show that they have met any conditions you have set.
A good way to establish whether a person has met the suspension conditions may be by examining the next return. But you should not artificially extend the suspension period to include the next return filing date, especially in annual return cases, if the person can show compliance with any specific conditions before they submit the next return.
Where the person has taken action to put things right before you have considered suspension, see CH83135, the suspension period may be shorter. This will reflect that the person has already spent time demonstrating their compliance with the suspension conditions.