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HMRC internal manual

Compliance Handbook

Calculating penalties: special reduction: submission to TAA

You must not give a special reduction without authority from TAA to do so.

You must submit the case to Central Policy, Tax Administration Advice (TAA) if you consider that a special reduction may be applicable or if a person disputes your refusal to give a special reduction. In all cases the submission to TAA must be authorised by your line manager. Your manager must check that the penalty decisions already taken would be authorised.

You must send the following documentation electronically to your manager:

    1. A copy of the PDAC. If, unusually, no PDAC is used, you will also need to provide a summary of the decisions and considerations leading to the penalty chargeable, and a copy of the penalty calculation electronically to TAA.
      1. A summary of the person’s representations (if any) about special reduction.
      2. A summary of your considerations, decision and reasoning about whether you consider that a special reduction is appropriate or not.

Managers must forward this documentation to Central Policy, (This content has been withheld because of exemptions in the Freedom of Information Act 2000)  together with a statement that they consider that special reduction should be considered.

In most cases TAA will need to see the compliance check records in due course, and so these should be kept available.