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HMRC internal manual

Compliance Handbook

Penalties for Failure to Notify: Types of failure to notify: Deliberate and concealed

A failure to notify, see CH71220, is deliberate and concealed if the person

  • knows that they are required to notify us about the relevant obligation, see CH71300,
  • is able to do so, but
  • does not do so and takes active steps to conceal the fact that they are required to do so.

Concealing the fact that they should have notified us about a relevant obligation is the most serious level of evasion.

The act of concealment may include

  • creating false evidence of a non-taxable source to explain undisclosed taxable income
  • creating false stock records
  • creating false invoices to support inaccurate figures of turnover
  • backdating or postdating contracts or invoices
  • destroying books and records so that they should not be available
  • creating sales records that deliberately understate the value of the goods sold, the balance of the full price being paid separately to the person
  • concealing excise goods on which the duty has not been paid or deferred with ‘innocent’ goods.

Although the penalties for deliberate inaccuracies are civil monetary penalties, we also have a criminal investigation policy and will refer the most serious cases for consideration of criminal proceedings where appropriate.

For practical examples of deliberate failure to notify with concealment see CH72140.

FA08/SCH41/PARA5 (1)(a)