SCHEDULES
C1SCHEDULE 7 Insurance premium tax
Part IV Penalties
Civil penalties
14
1
A person who fails to comply with section 53(2) of this Act shall be liable to a penalty equal to 5 per cent. of the relevant tax or, if it is greater or the circumstances are such that there is no relevant tax, to a penalty of £250; but this is subject to sub-paragraphs (3) and (4) below.
2
In sub-paragraph (1) above “relevant tax” means the tax (if any) for which the person concerned is liable for the period which—
a
begins on the date with effect from which he is, in accordance with section 53 of this Act, required to be registered, and
b
ends on the date on which the Commissioners received notification of his liability to be registered.
3
Conduct falling within sub-paragraph (1) above shall not give rise to liability to a penalty under this paragraph if the person concerned satisfies the Commissioners or, on appeal, an appeal tribunal that there is a reasonable excuse for his conduct.
4
Where, by reason of conduct falling within sub-paragraph (1) above—
a
a person is convicted of an offence (whether under this Part of this Act or otherwise), or
b
a person is assessed to a penalty under paragraph 12 above,
that conduct shall not also give rise to liability to a penalty under this paragraph.
5
If it appears to the Treasury that there has been a change in the value of money since the passing of this Act or, as the case may be, the last occasion when the power conferred by this sub-paragraph was exercised, they may by order substitute for the sum for the time being specified in sub-paragraph (1) above such other sum as appears to them to be justified by the change.
6
An order under sub-paragraph (5) above shall not apply in relation to a failure which ended on or before the date on which the order comes into force.
Sch. 7 extended (19.3.1997) by 1997 c. 16, s. 50, Sch. 5 Pt. I paras. 1, 4(2)