CEP5100 - Civil evasion penalties for Customs, Excise and VAT: the rules for assessment and notification: customs legislation

Power to issue a demand notice

Section 30 of the Finance Act 2003 provides that where a person is liable for a civil evasion penalty the Commissioners may give to that person or his representative a notice in writing, a ‘demand notice’ demanding payment of the amount of penalty due.

Time limit on giving a demand notice

Section 31 of the Finance Act 2003 provides that a demand for penalties may not be given more than:

• 20 years after the conduct giving rise to the liability to the penalty has ceased
• two years after there has come to the knowledge of the Commissioners evidence of facts sufficient in the opinion of the Commissioners to justify giving a demand notice.

Penalty Notice must be sent by post

Section 39 of the Finance Act 2003 provides that a penalty notice is to be given by sending it by post in a letter addressed to the person or their representative at the last or usual residence or place of business of that person or representative.