CH179240 - Sanctionable conduct by tax advisers: appeals against a penalty: sanctionable conduct
A person can appeal against both the imposition and the amount of penalty that we have charged for sanctionable conduct.
The notice of appeal must
- be given to us in writing
- be given within 30 days from the penalty assessment, and
- state the grounds of the appeal.
If the person requests an HMRC review, then we should review both the imposition and the amount of the penalty.
If the person notifies their appeal against the imposition of a penalty for sanctionable conduct, the tribunal may confirm or cancel the penalty.
If the person notifies their appeal against the amount of penalty for sanctionable conduct to the tribunal, the tribunal may
- confirm the penalty amount, or
- substitute a different penalty amount that HMRC had the power to make.
If the tribunal substitutes a different penalty amount, the tribunal may rely on the special reduction provisions, see CH178330.
- to the same extent as we did when we first decided the penalty, which may mean applying the same reduction as we did to a different starting point, or
- to a different extent, but only if the tribunal thinks that our decision was ‘flawed’.
Being ‘flawed’ is considered in light of the principles applicable in proceedings for judicial review.
The person does not have to pay the penalty before we can consider an appeal against the assessment of the penalty.
For procedural purposes, an appeal against the penalty is treated in the same way as an appeal against an assessment to income tax. This means that the person appeals to HMRC and has the opportunity to have a review or to notify the appeal to the tribunal, either instead of or after the review.
The Appeals, Reviews and Tribunals Guidance, ARTG2100+ contains full guidance on the review and appeals process, see ARTG2100+.
See CH185260 for guidance on appeals against a penalty for failing to comply with a file access notice.
FA12/SCH38/PARA31