IEIM609050 - Notification requirement: Penalties for failure to send notification: Obligation on overseas persons
Notification Regulations: Penalties for not sending a notification: Obligation on overseas persons
Where an overseas person is required to send a notification and fails to do so, any penalty for not complying with the obligation will still fall on the UK controlling party. Where this situation arises, HMRC will expect the UK person to help establish whether appropriate systems and processes were in place by the overseas person, and whether the UK person had taken all steps reasonably open to them to oblige the overseas person to comply.
If the laws or regulations in the country the overseas person is based in restrict them from complying, then the UK person cannot reasonably expect them to comply, it is unlikely that a penalty will be charged.