Commentary

A4.501 The harmonised penalty regime and other matters

Administration and compliance

A4.501 The harmonised penalty regime and other matters

Division A4.5     Penalties

For updates affecting this Division please see Part A0 Updates

Introduction to penalties

A4.501 The harmonised penalty regime and other matters

For the latest New Development, see ND.1566.

Background to the harmonised penalty regime

When the Inland Revenue and Customs & Excise merged in 2005 to form HMRC, a patchwork of separate penalty provisions relating to the various direct and indirect taxes now within its remit were inherited.

Harmonisation of the penalty and other compliance provisions applying to the taxes administered by HMRC was seen as highly desirable, and a radical review of the various provisions was undertaken by way of the HMRC project 'Modernising Powers, Deterrents, and Safeguards'. A substantial part of that project was devoted to developing a unitary penalty system which could be applied across all taxes, direct and indirect.

The harmonised penalty

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