Penalty notice: considering whether to issue a penalty notice: example of a decision to charge a penalty
Claire has been trading for many years and is used to making declarations. She failed to make three declarations correctly 12 months ago and was given a warning letter. On a recent visit the CITEX compliance officer found that Claire had made errors on four further declarations. This is a contravention under Reason Code 051.
The compliance officer considers the following points.
- It is less than 3 years since the earliest contravention and less than 2 years since we had evidence of facts about those contraventions. So we can issue a penalty if we consider one is appropriate. See CCPG11600 for details of time-limits.
- Claire was responsible for making the declarations and so she is the person to be penalised.
- The contravention falls within the category of poor compliance.
- We have previously issued a warning letter but this has not resulted in improved compliance.
- Claire has not presented any facts or arguments to suggest that there is a reasonable excuse for the contraventions.
- Claire’s business is not substantial enough to have a HMRC Customer Relationship Manager.
- Overall, action is needed to encourage future compliance. A warning letter has not had the desired effect and a penalty is more appropriate at this stage.
The CITEX Compliance officer decides it is appropriate to issue a penalty notice to Claire. They complete the Customs Penalty Action Checklist (CPAC), seek their managers’ authorisation, issue the penalty to Claire, save all the documents to Caseflow and send an e- copy of the penalty notice to CITEX CCP Network.