Penalties for VAT and Excise Wrongdoing: In what circumstances is a penalty payable: Commencement date
The wrongdoing penalty regime applies where a person
- makes an unauthorised issue of an invoice showing or including VAT, see CH91350, on or after 1 April 2010, or
- misuses a product, see CH91500, on or after 1 April 2010 that should attract a higher rate of excise duty, see CH91400, or
- supplies a product, see CH91500, on or after 1 April 2010 knowing that it will be misused for a purpose that should attract a higher excise duty, see CH91450, or
- handles goods subject to unpaid excise duty on or after 1 April 2010 , see CH91550, or
- for the purposes of Landfill Tax makes, knowingly causes, or knowingly permits a disposal of material at an unauthorised waste site on or after 1 April 2018, see CH91800.
We cannot charge a penalty if we are satisfied that the person
- has a reasonable excuse for a non-deliberate act, and
- if the excuse has ended, has remedied the act without unreasonable delay.
Reasonable excuse does not apply to Landfill Tax wrongdoings, see CH91800, because there is no penalty where the wrongdoing is a result of non-deliberate behaviour.
Further guidance is at CH92000.
SI2009 No 511