V23.116 Penalties

Offences, penalties and interest in relation to SDIL

Fraudulent evasion of soft drinks industry levy

An offence under FA 2017, s 50 is to be treated as a “fraud offence” for the purposes of CEMA 1979, s 118C(3), (4)1, giving HMRC the powers of entry and search afforded by those provisions. An offence is committed if the person is knowingly concerned in, or in the taking of steps with a view to, the fraudulent evasion (by that person or any other person) of the levy2. This includes circumstances where a tax credit3 and/or a repayment of soft drinks industry levy4 are obtained when there is no entitlement to it.

A person guilty of an offence under this provision is liable5:

  1.  

    •     on summary conviction, to

  2.  
    1.  

      –     a prison term of no more than 12 months6 (six months in Northern Ireland), or

    2.  

      –     a fine not exceeding £20,000 (in Scotland and Northern Ireland, the statutory maximum) or (if greater) 3 times the amount of SDIL which was, or was to have been, evaded, or

    3.  

      –     both

  3.  

    •     On conviction on indictment, to

  4.  
    1.  

      –     imprisonment for a term not exceeding seven years,

    2.  

      –     a fine, or

    3.  

      –     both

In determining the amount of SDIL evaded, no account is to be taken of any credit or repayment of SDIL to which the person was or would have been entitled7.

Failure to notify a liability to register8

Failure to notify – offence

It is an offence for a person not to notify a liability to

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