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HMRC internal manual

Compliance Handbook

From
HM Revenue & Customs
Updated
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Publishing details of deliberate defaulters (PDDD): cross-tax working

Where

  • checks into more than one tax regime are done in coordination under cross-tax working, or
  • a check into one tax identifies information that prompts a check into the person’s compliance with another tax regime

these checks will be treated as one ‘investigation’ for the purposes of question 3 in the table of publication questions, see CH190680.

When you start a cross-tax check that you have reason to believe that what you have found could result in publication, see CH500200, or you expand a single regime check involving actual or potential deliberate behaviour into other areas that might result in PDDD applying, you must give the person factsheet CC/FS13 (GOV.UK)Publishing details of deliberate defaulters.

Explain to them that if they incur relevant penalties for deliberate defaults exceeding £25,000 PLR, their details are likely to be published unless they immediately tell you everything about the default, give you access to their records and actively help you to establish the amount of unpaid tax.

If they fail to make a full disclosure at the start of the compliance check, they will not be eligible for a full reduction for disclosure and their details may be published.

The person or their representative may contend that there were separate investigations for each tax if the check reveals PLR of more than £25,000 in total but less than £25,000 for each type of tax. You should discuss any such suggestion with your authorising officer. There is guidance on the question of whether there is a single or multiple investigations at CH190688 and examples of single and multiple investigations at CH190690. You can also seek advice from the Managing Serious Defaulters Programme (MSD).

In cross-tax cases, the lead officer must keep track of the publication time limits, see CH500610. You must refer the case to MSD to consider publication as soon as you find that you have relevant penalties in one or more strands of the check for which the answer to the five publication questions is yes, and those penalties have become final see, CH190940.

If we are to publish, MSD must do so within 12 months after the date the latest of the relevant penalties becomes final.

A penalty becomes final on

  • the day after the end of the appeal period if the person does not make an appeal, or
  • the date when an appeal is finally determined, or
  • the date when a contract settlement is made.

You must not wait until all strands of the check are settled, otherwise the publication time limits that MSD must work to may be compromised.