Penalties and interest: failure to supply information - S32(1) penalties
Where a person fails to provide information or evidence requested under a formal notice under Section 14, 15, 16, 17, 18 or 19 a penalty can be charged under S32(1).
Penalties under S32(1) are not intended to punish a person who will not provide information. The penalties are intended to encourage the person to comply with the notice and if you do not think the penalties will achieve this result you should not normally begin penalty action.
You cannot charge a penalty for failure to supply information unless a formal notice has been issued to the customer.
The initial penalty for failing to comply with a formal notice is an amount not exceeding £300 and if the failure continues a penalty not exceeding £60 per day may be charged. However, the initial penalty can only be imposed by the Tribunals Service.
If you are in any doubt as to whether penalties will encourage the person to comply with the notice you should discuss the matter with your manager, who, if necessary, will consult their SO delivery manager.
In most cases it will not be necessary to resort to penalty action for a customer’s failure to provide information. If you do need to consider penalties for either a customer or a third party failure see CCM10280.