Human Rights Act 1998 (HRA): Article 6: What you must do when a penalty may be due
As soon as you have reason to believe that a tax-geared penalty, with a potential maximum penalty of 70% or 100%, may be due, see EM1363, you must tell the person about their rights under Article 6. This means that you must
- tell them that they do not have to co-operate with your compliance check. You must also explain what might happen if they choose not to co-operate. EM1365 explains how you should do this and EM1375 sets out the message to convey
- work the case without unreasonable delay. This includes taking positive action to overcome delay by the person or their agent. EM1380 explains how delays may affect your ability to charge a penalty.
You must also tell the person that you will issue assessments for the tax and any penalties if
- they request early closure of the compliance check and the tribunal agrees, or
- constructive discussions leading to an agreed position about the tax and any penalties are unlikely.