SDLTM86250 - Compliance: Penalties

Legislation: Failure to produce documents FA03/SCH10/PARA16: General

All FA03/SCH10/PARA14 information notices should be followed up promptly.

As soon as the time limit shown on the notice has expired, the purchaser should be contacted in writing, sending a copy to the agent, drawing attention to the failure and to the penalties that can be applied under FA03/SCH10/PARA16.

No penalties can be imposed in respect of a failure at any time after the failure has been remedied. This applies to both the initial and the daily penalties.

If information notices are to be effective it is important that they are followed up promptly at all stages. If no response to a warning letter is received after, say, 21 days, the following should be considered urgently

• establishing personal contact with the purchaser to ascertain the reasons for the continuing delay in providing information
• the amount of tax that appears to be at stake
• the nature and extent of the records requested
• the problems facing the purchaser in getting together all the information requested
• the degree of co-operation afforded to date in HM Revenue & Customs enquiry
• the purchaser’s general history of compliance/co-operation

The case must be referred to a Grade 6 officer before formal penalty action is commenced.