SDLTM86570 - Compliance: Penalties

Contract settlements and abatement: Inform the purchaser

The compliance caseworker must make the purchaser fully aware of HM Revenue & Customs views concerning all factors which affect the settlement either at interview or by a letter issued directly to him.

The nature of the offences attracting penalties should be covered and a clear note that culpability was explained and established before the purchaser was invited to make an offer in settlement should be made.

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

It is equally essential that in any discussion of penalties the question of abatement should be clearly brought out. A compliance caseworker must

• draw the purchaser’s attention to the maximum amount of the penalties which they consider the purchaser has incurred, and which are in date for formal action
• draw the purchaser’s attention to the Board’s powers to abate or mitigate penalties and accept an offer
• explain the powers to determine a penalty should an agreed settlement not be reached
• point out that the purchaser has a right of appeal to the Commissioners (and then to the court) if they do not accept the compliance caseworker’s view of the penalty position