Section 10: Penalties: supplementary
Section 10(1) provides that no penalty under section 9 in relation to failures (to furnish information, evidence or documents) under section 9(3)(a) or (c) shall be imposed after the failure has been remedied. This includes the penalty for initial failure, and the penalties for continuing failure. For failure under section 9(3)(b) the continuing penalty is prevented once the failure has been remedied, but the initial penalty may be imposed. The penalty under section 9(3)(b) is for failures in relation to employers regulations.
Section 10(2) provides that a penalty under section 9(7) shall not be imposed until the end of the tax year, and only one penalty in relation to any one employee can be imposed for any tax year.
Section 10(3) provides that s.118(2) of TMA shall apply for penalties under section 9(3) and (6). This allows for extra time to remedy a failure and for a reasonable excuse for failure to comply.
Section 10(4) gives effect to Schedule 4. This gives details of the procedure for imposing penalties and appeals against them.
