ECSH82845 - Sanctions for non-compliance: financial penalties: financial penalties framework: behaviours - definition of cooperation
The level of cooperation provided by a business to HMRC can be determined by much the business tells, helps and gives HMRC in order to establish any contraventions of the regulations. Where the business has cooperated with HMRC, a reduction will be applied to the penalty.
When considering whether the business has cooperated, you need to consider whether it has done the following:
- Telling us there is a contravention, where it is known to them, disclosed it in full and explained how and why it happened.
- Helping HMRC, during the course of our engagement with the business to identify contraventions, including:
- Positive, proactive assistance as opposed to passive acceptance or obstruction
- Actively engaging in the work to accurately identify the contraventions of the Money Laundering Regulations (MLRs) the business is liable for
- Volunteering any information relevant to the disclosure
- Giving us access to all relevant documents, records and persons within the business.
In considering whether a business has been cooperative, you should always take account of the abilities and circumstances of the business. What is important is the timing, nature and extent of the cooperation provided to HMRC.
The timing relates to whether the business has, from start, and throughout, HMRC engagement, been proactive, providing and volunteering information and access to records etc. as early as possible. If the business has only cooperated throughout part of the engagement with HMRC, it is unlikely that the reduction will apply.
Deciding whether the business has cooperated is a matter of judgment for the decision-maker and based on the facts of the case.
Case examples can be found at ECSH82785.