CH177310 - Sanctionable conduct by tax advisers: file access notice: penalties for failing to comply: daily penalties
Once a person has been issued with an initial £300 penalty, they become liable to daily penalties of up to £60 for each day that they continue to fail to comply with the file access notice by not providing all the required documents.
If the person’s failure to comply continues for more than 30 days from the point at which the first £60 daily penalty was issued, then we may also make an application to the tribunal to increase the daily penalty amount up to £1,000.
Before we make an application to the tribunal to increase the daily penalty amount, we must first have told the person that we may make such an application. However, we do not need to wait to until the person becomes potentially liable to an increased daily penalty amount before we tell them we may make an application. It will be sufficient for us to tell the person at the time we issue them with their first daily penalty of up to £60 that, if their non-compliance continues for more than 30 days from this point, then we may apply to the tribunal to increase the daily penalty amount.
If the tribunal decides that a person should be liable to an increased daily penalty, the tribunal will determine that increased penalty amount (and the date from which it is to apply). In doing so, the tribunal must have regard to the likely cost to the person of complying with the notice and any benefits accruing to the person (or another person) through not complying with it. Once the tribunal has decided the new penalty amount and the date from which it is to apply, we must notify the person of these facts.
A person is not liable to daily penalties where they have destroyed or otherwise disposed of a required document, or they have arranged for someone else to destroy or otherwise dispose of a required document. This is because there is no way that the person can now comply with the notice. Instead, we would consider prosecuting the person, see CH177240.
A required document is a document requested in a file access notice but see CH177340 for a more detailed description.
See CH179020 for guidance on how to process daily penalties and see CH177320 for an example.