A4.594A Determination of penalties—pre-harmonised regimeHMRC determination of penalties under the pre-harmonised regimeIn the great majority of cases where an enquiry into a taxpayer's return shows that income or gains have been understated, the HMRC officer will negotiate a settlement. The officer will explain the statutory provisions regarding their authority to impose (and to mitigate) penalties and will invite the taxpayer to offer to make a payment to include underpaid tax, interest and mitigated penalties. If such an offer is made, no formal penalty proceedings will be taken; see A4.597.All penalties under the Taxes Acts are determined by an authorised HMRC officer1 with the following exceptions2: • where penalty proceedings for fraud have been commenced before the court3 • continuing daily penalties for failure to deliver a return for income tax and capital gains tax4 • an initial penalty (but not continuing penalties) for failure to submit special returns or to supply documents or information5 • an initial penalty on a promoter of a tax avoidance scheme for failing to notify the scheme to HMRC6HMRC may issue penalties relating to
In the great majority of cases where an enquiry into a taxpayer's return shows that income or gains have been understated, the HMRC officer will negotiate a settlement. The officer will explain the statutory provisions regarding their authority to impose (and to mitigate) penalties and will invite the taxpayer to offer to make a payment to include underpaid tax, interest and mitigated penalties. If such an offer is made, no formal penalty proceedings will be taken; see A4.597.
All penalties under the Taxes Acts are determined by an authorised HMRC officer1 with the following exceptions2:
• where penalty proceedings for fraud have been commenced before the court3
• continuing daily penalties for failure to deliver a return for income tax and capital gains tax4
• an initial penalty (but not continuing penalties) for failure to submit special returns or to supply documents or information5
• an initial penalty on a promoter of a tax avoidance scheme for failing to notify the scheme to HMRC6
HMRC may issue penalties relating to
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