CH190704 - Publishing details of deliberate tax defaulters: The publication questions: Question 4 - Is this relevant penalty a qualifying relevant penalty: What is a qualifying relevant penalty

We can only publish a person’s details if we can answer ‘yes’ to all five publication questions at CH190620.

A qualifying relevant penalty is a relevant penalty for which the person has not earned the maximum reduction for the quality of disclosure. The definition of a relevant penalty is at CH190644.

If a person has earned the maximum quality of disclosure reduction for a relevant penalty, the penalty is not a qualifying relevant penalty and we cannot publish details of the penalty.

In considering whether a person has earned the maximum penalty reduction you may also have to consider the type of disclosure and the timing of the disclosure.

The type of disclosure

For cases that do not involve offshore matters or offshore transfers, it does not matter whether the person’s disclosure is unprompted or prompted. However, where an inaccuracy or failure involves an offshore matter or an offshore transfer, the taxpayer must normally have made an unprompted disclosure, as well as earning the maximum reduction, for the penalty not to be a qualifying relevant penalty. So the answer to the fourth question will normally be ‘Yes’ in any offshore penalty case where the disclosure was prompted.

However, where a person is found liable to a penalty for failing to correct their offshore tax non-compliance during the requirement to correct period, see CH123000, PDDD will onlyapply if the conditions set out at CH123425 are met.

The timing of the disclosure

Where quality of disclosure has been restricted only because of a delay in starting to disclose, you should treat the maximum reduction as having been earned, for the purposes of this question. In other words, where a restriction of 10% is applied under CH73360 (Sch 41) or CH82465 (Sch 24) but otherwise the maximum 100% is given for ‘Telling, Helping and Giving Access’, publication should not take place (unless the disclosure was prompted and relates to an offshore matter or transfer).

This means that the operation of the ‘10% restriction rule’ will not by itself lead to publication.

If a person has not earned the maximum reduction of a relevant penalty for the quality of disclosure for any other reason, or if they have made a prompted disclosure in an offshore penalty case, you should go on to consider question 5, see CH190720.

The guidance below looks at two possible situations and the general topic of disclosure.

One relevant penalty from the investigation

Here there is only one penalty to consider. Has the maximum reduction for quality of disclosure been given? In such a case, it will be straightforward to see whether

  • the maximum reduction has been given, and so we cannot publish details, or
  • the maximum reduction has not been given, and so we go on to consider question 5, see CH190720.

More than one relevant penalty from the investigation

Here each relevant penalty needs to be considered. Has the maximum reduction for quality of disclosure been given for each relevant penalty? It may be that

  • it has been given for some relevant penalties, in which case they are not qualifying relevant penalties, but
  • it has not been given for other relevant penalties, in which case those are qualifying relevant penalties and need to be considered together for question 5, see CH190720.

See CH190706 for an example showing qualifying relevant penalties.

Disclosure

There is guidance on disclosure elsewhere in the Compliance Handbook.

   
Penalty reductions for quality of disclosure  
Inaccuracies CH82430
Failure to comply with obligations CH73220
VAT and excise wrongdoings CH94850
Unprompted or prompted disclosure  
Inaccuracies CH82400
Failure to comply with obligations CH73200
VAT and excise wrongdoings CH94500

FA09/S94 (10)

FA07/SCH24/PARA10
FA08/SCH41/PARA13