CH179030 - Sanctionable conduct by tax advisers: how to process a penalty: time limits for assessing penalties
The time limit for issuing an assessment for a penalty depends on which penalty is being assessed.
Initial and daily penalties for failure to comply with a file access notice
We can assess an initial penalty for failing to comply with a file access notice within 12 months from when the person first becomes liable to the penalty. The person first becomes liable to the initial penalty on the day after the date on which the documents should have been provided, see CH177280.
Daily penalties must also be assessed within 12 months from when the person becomes liable to the penalty. The person becomes liable to daily penalties the day after the day on which the person was charged the initial penalty.
Penalty for providing inaccurate information in response to a file access notice
We can assess a penalty for providing inaccurate information in purported compliance with a file access notice within 12 months from when the person first becomes liable to the penalty. The person first becomes liable to the penalty on the day on which the inaccurate documents were provided.
Penalty for sanctionable conduct
We can assess a penalty for sanctionable conduct within 12 months from the later of date one and date two.
Date one
Date one is the first day on which we may assess the penalty. This is the day on which a conduct notice was issued to the tax adviser.
Date two
Date two depends on whether a loss of tax revenue has been brought about by the sanctionable conduct.
If a loss of tax revenue has been brought about by the sanctionable conduct, date two is
- the day after the end of the ‘appeal period’ for the assessment, or determination of the tax revenue lost, or, if more than one client is involved, the end of the last such period, or
- if there is no such assessment or determination, the day
on which the amount of tax revenue lost is ascertained.
If no loss of tax revenue was brought about by the sanctionable conduct, then date two is the day on which we decide that no loss of tax revenue results.
The ‘appeal period’ is the period in which
- an appeal could be made, or
- an appeal has been made, and the end date of that appeal period is when the appeal is withdrawn or determined.