SDLTM86280 - Compliance: Penalties

Legislation: Failure to produce documents FA03/SCH10/PARA16: Daily penalties

The relevant amount for daily penalties is a sum not exceeding

• in the case of a determination by an officer of the Board under FA03/SCH10/PARA16(2)(a) - £30
• in the case of a determination by the court under FA03/SCH10/PARA16(2)(b) - £150

Generally, in cases dealt with in the Stamp Office, the daily penalties will fall within FA03/SCH10/PARA16(2)(a) and will be imposed by HM Revenue & Customs.

Authority of the authorised officer for the imposition of these daily penalties must be obtained. The authorised officer for daily penalties will always be a Grade 6 officer.

There should be clear evidence in the papers that a Grade 6 officer has approved the amount of the daily penalty before the penalty notice was issued.

These daily penalties should normally be imposed approximately 30 days after the date the initial £50 penalty was imposed. If a compliance caseworker delays taking action then even a £10 daily penalty will have grown to a substantial figure.

In determining the amount of these penalties the following should be considered

• 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 need to obtain early compliance with the information notice

Whatever figure is decided upon, it may need to be justified on appeal before the Commissioners.

(This text has been withheld because of exemptions in the Freedom of Information Act 2000)

The period to be taken into account when calculating the penalty

• starts with the day after the date on which the initial £50 penalty was imposed (or the day after the last day to which previous penalties ran, if further daily penalties have been approved)
• ends not later than the last working day before that on which the determination will be made

Both dates are inclusive.