Commentary

A4.572 Penalty for failure to comply with an information notice

Administration and compliance

A4.572 Penalty for failure to comply with an information notice

A4.572 Penalty for failure to comply with an information notice

For the latest New Development, see ND.1285.

Date in force

FA 2008, Sch 36 contains penalty provisions in relation to HMRC's information and inspection powers1. For detailed commentary on the powers conferred upon HMRC by Sch 36 see A6.610–A6.624.

Prospective change in the law—HMRC's information powers

From July to October 2018, HMRC consulted on suggested changes to FA 2008, Sch 36 information powers2.

The proposals included aligning the process for third-party information notices more closely with taxpayer notices, and introducing a 'financial institution notice'.

Penalties for non-compliance with an information notice

From 1 April 2009 an HMRC officer has power to obtain information and documents from a taxpayer or third party by the service of a notice3. A recipient who fails to comply with an information notice, or obstructs an officer in the course of an inspection approved by the First-tier Tribunal, is liable to a penalty of £3004. For a case where the First-tier Tribunal upheld penalties under this provision, see Backhouse v HMRC5.

Failure to comply includes a person who conceals, destroys or otherwise disposes of documents either:

  1.  

    (a)     following the issue of an information notice; or

  2.  

    (b)     because they are aware that a document is or is likely to be the subject of an information notice,

or arranges for this to be done6.

If a failure continues beyond the date of issue of a fixed penalty, daily penalties of up to £60 per day may be imposed7.

If a person becomes liable to a standard

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