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HMRC internal manual

Excise Civil Evasion Penalty

HM Revenue & Customs
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Liability to an excise civil evasion penalty: when an act of evasion takes place

Section 8 (1) Finance Act 1994 states that in any case where

  1. any person engages in any conduct for the purpose of evading any duty of excise, and
  2. his conduct involves dishonesty

that person shall be liable to a penalty of an amount equal to the amount of duty evaded or, as the case may be, sought to be evaded.

The reference in subsection (1) (a) to evading a duty of excise includes references to obtaining or securing without being entitled:

  • any repayment, rebate or drawback of duty
  • any relief or exemption from or any allowance against duty or
  • any deferral or other postponement of liability to pay any duty or of the discharge by payment of any such liability.

It also includes references to any evading of the cancellation of any entitlement to, or the withdrawal of, any such repayment, rebate, drawback, relief, exemption or allowance.