Types of penalty: Interaction with Finance Act 2008 Schedule 41 penalties
Failure to Notify
A taxpayer may be liable to a Schedule 41 penalty for failure to comply with a relevant obligation.
Where this occurs and the taxpayer is also liable to a penalty for the same failure under Section 9 Finance Act 1994 the amount of penalty under Schedule 41 must be reduced by the amount of the penalty under Section 9 Finance Act 1994.
The following table shows which section of the law this applies to, for further guidance see CH76000.
|Act||Schedule 41 Finance Act 2008 ‘Failure to Notify’ penalty||Section 9 Finance Act 1994 ‘Failure to Notify’ penalty|
|ALDA||47(1), 62(2)||47(4), 62(6)|
VAT & Excise Wrongdoing
Paragraphs 15(1) Schedule 41 FA2008 does provide for interaction between penalties under paragraphs 1 - 4 of that schedule and other penalties or surcharge.
However it is not envisage that a situation will arise where a taxpayer who has committed VAT or Excise wrongdoing, will get another penalty which is determined by reference to the same tax liability.
If you come across a situation where this is the case, you should contact Tax Administration, Litigation and Advice (TALA), see ECP1700.