If you fail to:
- comply with an information notice (see RSTP2017 and RSTP2018); or
- deliberately obstruct us (or a person authorised by us) in the course of an inspection (see RSTP2027) or in the exercise of a power that has been approved by the tribunal under section 147 of the RSTPA 2014 (see RSTP2023),
then you are liable to a fixed penalty of £300.
If the failure or obstruction on your part continues after the date on which this first fixed penalty of £300 is imposed, you are liable to a further penalty (or penalties) of up to £60 for each subsequent day on which the failure or obstruction continues.
This daily penalty amount may be increased if, in relation to an identity unknown information notice (see RSTP2006) the failure or obstruction continues over a longer period of time (see RSTP3016).
Alternatively you may be liable (in addition to the fixed £300 and ‘up to’ £60 daily penalties) to an additional penalty, of an amount determined by the Upper Tax Tribunal for Scotland, where we have reason to believe that, as a result of continued failure or obstruction, the amount of tax that you have paid (or are likely to pay) is significantly less than it would otherwise have been for that failure or obstruction. See RSTP3017 for further information.
You are not liable to either the £300 fixed penalty or the ‘up to’ £60 daily penalty if:
- you satisfy us or (on appeal) the tribunal that there is a reasonable excuse for either your failure to comply or obstruction. See RSTP3022 for guidance on what may, and may not, constitute a reasonable excuse;
- if you fail to do something you are required to do within a limited period of time (such as a requirement in an information notice to produce documents by a specified time), but you did it within such further time as we may have allowed; or
- in the case of a failure to comply with an information notice by concealing, destroying or otherwise disposing of a document which is (or may be) required by such a notice, if any of the circumstances apply which are outlined in RSTP2018 under the heading ‘Circumstances where the criminal offence and penalty do not apply’.
We must make an assessment and notify you of your liability to either penalty (the £300 fixed penalty and the ‘up to’ £60 daily penalty) within 12 months of the date on which you first became liable to the penalty unless:
- the penalty is in relation to failing to comply with an information notice; and
- the notice is one which you have the right to give a notice of appeal against (that is, you can appeal against the notice on the grounds that it would be unduly onerous to comply with it – see RSTP6004).
Where this is the case, we must make an assessment and notify you of your liability to the penalty within 12 months of the latest of:
- the date on which you first became liable to the penalty;
- the end of the period in which you could have given a notice of appeal against the notice (see RSTP6008); and
- if you have given a notice of appeal against the notice, the date on which the appeal is determined (upholding the penalty award) or withdrawn.
You must pay the penalty no later than 30 days from the date on which we issued the notice of the penalty assessment to you, unless:
- you give a notice of review (see RSTP6006) against the penalty, in which case you must pay the penalty no later than 30 days from the date on which the review is concluded upholding the decision to award a penalty;
- you enter into mediation with us following a review but either you or we then give notice of withdrawal from mediation (see RSTP6007), in which case you must pay the penalty no later than 30 days from the date on which either you or we gave the notice of withdrawal; or
- you give a notice of appeal (see RSTP6008) against the penalty, in which case you must pay the penalty no later than 30 days from the date on which the appeal is determined upholding the award of the penalty or the appeal is withdrawn.
We will charge interest on the amount of any unpaid penalty from the date on which the penalty is due to be paid until you pay it (see RSTP4003).
Both penalty types (the £300 fixed penalty and the ‘up to’ £60 daily penalty) are treated for enforcement purposes (see RSTP5001) as an assessment to tax. This means that we have the same debt enforcement and recovery powers in relation to this penalty (and other penalties) as we have in relation to tax.