OTS terms of reference for review of civil penalties

OTS terms of reference for review of civil penalties

Wed 13 Aug 2014

HMRC has commissioned the Office of Tax Simplification (OTS) to look into the following aspects of civil penalties:

  • areas of particular difficulty for businesses and individual taxpayers
  • areas where HMRC find difficulties in administering the penalty rules;
  • HMRC guidance and advice;
  • the number and range of HMRC financial penalties issued to consider if they are proportional and have been targeted correctly;
  • the number and range of financial penalties issued to consider if they have been successful in deterring non-compliance and generally influencing behaviours in the ways intended;
  • whether the total number of different penalties could be reduced;
  • possible need for revalorisation of penalties and if so on what basis;
  • identifying a more effective, cheaper and better targeted alternative to penalties to drive compliant behaviour;
  • operation of suspension, reasonable excuse and special reduction.

The review will not consider non-financial penalties such as imprisonment.

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *