RSTP3016 - Failure to comply with identity unknown notice

RSTPA guidance on the higher daily penalty that a person may be liable to for continuing to fail to comply with an identity unknown information notice.

If you have been assessed by us as being liable to a daily penalty of up to £60 (see RSTP3015) for a failure to comply with an identity unknown information notice (see RSTP2006), we can apply to the tribunal for an increased daily penalty to be imposed if:

  • you continue to fail to comply with the notice after more than 30 days, beginning with the date the notice of the assessment of the initial daily penalty was issued; and
  • you have then been told by us that we may make an application to the tribunal for the imposition of an increased daily penalty.

If the tribunal (upon receiving our application) decides that an increased daily penalty should be imposed, it can determine a penalty amount of up to £1,000 a day.

In determining the penalty amount, the tribunal must have regard to:

  • the likely cost to you of complying with the identity unknown notice;
  • any benefits to you of not complying with it; and
  • any benefits to anyone else resulting from your non-compliance.

If the tribunal decides that you are liable to an increased daily penalty, we must notify you of this fact and specify the day from which the increased daily penalty is to apply.

From that specified day (and for each subsequent day) if you continue to fail to comply with the identity unknown notice:

  • you are no longer liable to the earlier daily penalty of up to £60; and
  • are instead liable to the higher daily penalty of up to £1,000 a day.

RSTPA 2014 section 204

You must pay the increased daily 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).

An increased daily penalty 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.

RSTPA 2014 section 205

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