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 a Tax Tribunal.

(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.