EM1362 - Human Rights Act 1998 (HRA): Article 6: FA2007 and FA2008 penalties

The penalties introduced by FA 2007 (penalties for inaccuracies) and FA 2008 (penalties for failure to notify and VAT & Excise wrongdoings) are designed to address behaviour. They do this by setting a maximum and minimum penalty percentage for each type of behaviour. The actual penalty percentage falls within the range.

The more serious the behaviour, the higher the maximum penalty is. Only the most serious behaviour, deliberate and concealed, has a penalty of 100% of the potential lost revenue, see CH82150 onwards. The maximum penalty for deliberate behaviour (that is, without concealment) is 70% of the potential lost revenue.

We accept that penalties that arise from deliberate and concealed and deliberate behaviour are within Article 6 because of the

• nature of the offence
• the seriousness of the behaviour, and
• the higher level of maximum penalty.

We do not accept that penalties that arise from other behaviours are within Article 6. This is because we do not consider that careless behaviour can be deemed to be criminal.

For detailed guidance on the FA07 and FA08 penalties please refer to CH80000+.