How to apply penalties: Decision making
When faced with conduct which is liable to a fixed or geared penalty you must ask yourself the following questions before arriving at a decision
- Is the contravention potentially liable to a fixed or geared penalty?
- Is the contravention a first breach? If so a warning notice should normally be considered
- Has the taxpayer got a reasonable excuse for the conduct, see ECP2700? If not
- Would the issue of a civil penalty have a greater compliance effect than other possible action
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