- you become liable to the fixed £300 penalty for failure or obstruction of the type outlined in RSTP3015;
- that failure or obstruction continues after that fixed penalty is imposed; and
- we have reason to believe that, as a result of the 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,
then we can apply to the Upper Tribunal for Scotland for an additional penalty to be imposed on you.
We must make the application within 12 months of the date you became liable to the fixed £300 penalty, unless:
- that penalty was imposed 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, it falls within the list of circumstances in RSTP6004).
Where this is the case, we must make the application within 12 months of the latest of:
- the date on which you first became liable to the fixed £300 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a notice of appeal against the notice, the date on which the appeal is determined (upholding the penalty award) or withdrawn.
If the Upper Tribunal for Scotland decides that it is appropriate for an additional penalty to be imposed, it will also decide on the penalty amount. Although there is no upper limit to the penalty amount, the Upper Tribunal for Scotland must have regard to the amount of tax which has not been (or is not likely to be) paid by you.
We will then notify you of your liability to this penalty, which is in addition to the fixed £300 penalty and, where it is also imposed, the daily ‘up to’ £60 penalty covered in RSTP3015.
You must pay the penalty no later than 30 days from the date on which we issued the notice of the penalty to you.
We will charge interest on the amount of any unpaid daily penalty from the date on which the penalty is due to be paid until you pay it (see RSTP4003).
A penalty for continued failure or obstruction determined by the Upper Tribunal for Scotland is 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.