Human Rights Act 1998 (HRA): Article 6: FA2007 and FA2008 penalties
The penalties introduced by FA 2007 (penalties for inaccuracies) and FA 2008 (penalties for failure to notify and VAT & Excise wrongdoings) have a penalty range for each type of behaviour.
Only the most serious behaviour, deliberate and concealed, has a maximum penalty of 100% of the potential lost revenue, see CH82150 onwards.
The maximum penalty for deliberate behaviour (that is, without concealment) is 70% of the potential lost revenue. We also accept that penalties with a potential maximum penalty of 70% in addition to those with a maximum penalty of 100% are within Article 6 because of the
- nature of the offence
- seriousness of the behaviour, and
- the higher level of maximum penalty, compared to the other penalty ranges.
We do not accept that penalties that arise from careless or non-deliberate behaviours are within Article 6, but when considering penalties you must treat any tax geared penalty where the maximum penalty is 70% or 100% of the potential lost revenue as if they are within Article 6, see CH300200.
For detailed guidance on the FA07 and FA08 penalties please refer to CH80000+.
For detailed guidance on how the Human Rights Act applies to FA 2007/8 penalties, see CH300000+.