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Appealing inaccuracy penalty: FA 2007, Sch 24

Appealing inaccuracy penalty: FA 2007, Sch 24

- Right of appeal

 

"(1)     A person may appeal against a decision of HMRC that a penalty is payable by the person.

(2)     A person may appeal against a decision of HMRC as to the amount of a penalty payable by the person.

(3)     A person may appeal against a decision of HMRC not to suspend a penalty payable by the person.

(4)     A person may appeal against a decision of HMRC setting conditions of suspension of a penalty payable by the person." (FA 2007, Sch 24, para 15)

- Right of appeal

- Procedure to follow: same as assessment to tax concerned

 

"(1)     An appeal under this Part of this Schedule shall be treated in the same way as an appeal against an assessment to the tax concerned (including by the application of any provision about bringing the appeal by notice to HMRC, about HMRC review of the decision or about determination of the appeal by the First-tier Tribunal or Upper Tribunal).

(2)     Sub-paragraph (1) does not apply—

(a)     so as to require P to pay a penalty before an appeal against the assessment of the penalty is determined, or

(b)     in respect of any other matter expressly provided for by this Act." (FA 2007, Sch 24, para 16)

- Procedure to follow: same as assessment to tax concerned

- Tribunal powers on appeal

 

Appeal against liability to any penalty

"(1)     On an appeal under paragraph 15(1) the tribunal may affirm or cancel HMRC's decision." (FA 2007, Sch 24, para 17)

 

Appeal against amount: affirm or substitute

"(2)     On an appeal under paragraph 15(2) the tribunal may—

(a)     affirm HMRC's decision, or

(b)     substitute for HMRC's decision another decision that HMRC had power to make." (FA 2007, Sch 24, para 17)

 

Special circumstances

"(3)     If the tribunal substitutes its decision for HMRC's, the tribunal may rely on paragraph 11—

(a)     to the same extent as HMRC (which may mean applying the same percentage reduction as HMRC to a different starting point), or

(b)     to a different extent, but only if the tribunal thinks that HMRC's decision in respect of the application of paragraph 11 was flawed." (FA 2007, Sch 24, para 17)

Flawed

"(6)     In sub-paragraphs (3)(b), (4)(a) and (5)(b) “flawed” means flawed when considered in the light of the principles applicable in proceedings for judicial review." (FA 2007, Sch 24, para 17)

Appeal re suspension or conditions of suspension

"(4)     On an appeal under paragraph 15(3)—

(a)     the tribunal may order HMRC to suspend the penalty only if it thinks that HMRC's decision not to suspend was flawed, and

(b)     if the tribunal orders HMRC to suspend the penalty—

(i)     P may appeal against a provision of the notice of suspension, and

(ii)     the tribunal may order HMRC to amend the notice.

(5)     On an appeal under paragraph 15(4) the tribunal—

(a)     may affirm the conditions of suspension, or

(b)     may vary the conditions of suspension, but only if the tribunal thinks that HMRC's decision in respect of the conditions was flawed.

[...]

(6)     In sub-paragraphs (3)(b), (4)(a) and (5)(b) “flawed” means flawed when considered in the light of the principles applicable in proceedings for judicial review.

(7)     Paragraph 14 (see in particular paragraph 14(3)) is subject to the possibility of an order under this paragraph." (FA 2007, Sch 24, para 17)

Tribunal

"(5A)     In this paragraph “tribunal” means the First-tier Tribunal or Upper Tribunal (as appropriate by virtue of paragraph 16(1)).(FA 2007, Sch 24, para 17)

- Tribunal powers on appeal

Appeals against information notices

 

See Chapters I-3 to I-5.

Appeals against information notices

Appeals against information notices and inspection penalties

 

See Chapters I-7: Compliance and non-compliance

Appeals against information notices and inspection penalties
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