PART 5PENALTIES

CHAPTER 5PENALTIES RELATING TO INVESTIGATIONS

Further penalties for continuing failure to comply or obstruction

I1150Increased daily default penalty for failure to comply with information notice

1

This section applies if—

a

a penalty under section 147 is assessed under section 153 in respect of a person's failure to comply with an unidentified third party notice,

b

the failure continues for more than 30 days beginning with the day on which notice of the penalty was issued, and

c

the person has been told that an application may be made under this section for an increased daily penalty to be imposed.

2

WRA may make an application to the tribunal for an increased daily penalty to be imposed on the person.

3

But WRA may not make such an application if a decision relating to a penalty under section 146 or 147 in respect of the failure is the subject of—

a

a review for which notice of the conclusions has not yet been issued, or

b

an appeal which has not yet been finally determined or withdrawn.

4

If the tribunal decides that an increased daily penalty should be imposed, then for each applicable day on which the failure continues—

a

the person is not liable to a penalty under section 147 for the failure, and

b

the person is liable instead to a penalty under this section of an amount determined by the tribunal.

5

The tribunal may not determine an amount exceeding £1,000 for each applicable day.

6

In determining the amount the tribunal must have regard to—

a

the likely cost to the person of complying with the notice,

b

any benefits to the person of not complying with it, and

c

any benefits to anyone else resulting from the person's non-compliance.

7

If a person becomes liable to a penalty under this section, WRA must issue to the person notice of that fact.

8

The notice must state the first day on which the increased penalty is to apply.

9

That day and any subsequent day on which the failure continues is an “applicable day” for the purposes of this section and section 153(4).