SCHEDULES

SCHEDULE 8Digital services tax: returns, enquiries, assessments and appeals

PART 9Penalties

Assessment of penalty, etc

56

1

If a person is liable to a penalty under this Part of this Schedule, HMRC must—

a

assess the penalty, and

b

notify the person.

2

The assessment of a penalty—

a

is to be treated for procedural purposes in the same way as an assessment to tax (except in respect of a matter expressly provided for by this Schedule),

b

may be enforced as if it were an assessment to tax, and

c

may be combined with an assessment to tax.

3

A supplementary assessment may be made in respect of a penalty if an earlier assessment is based on an amount of tax due and payable that is found by HMRC to be an underestimate or insufficient.

4

Sub-paragraph (5) applies if—

a

an assessment in respect of a penalty is based on a liability to tax that would have been shown in a return, and

b

that liability is found by HMRC to be excessive.

5

HMRC may by notice amend the assessment so it is based on the correct amount.

6

An amendment under sub-paragraph (5)—

a

does not affect when the penalty must be paid;

b

may be made after the last day on which the assessment in question could have been made (under sub-paragraph (7)).

7

An assessment of a penalty must be made before the end of the period of 12 months beginning with—

a

the end of the appeal period for the assessment of the liability to tax which would have been shown in the return, or

b

if there is no such assessment, the date on which that liability is ascertained or it is ascertained that the liability is nil.

8

In sub-paragraph (7) “appeal period” means the period during which—

a

an appeal could be brought, or

b

an appeal that has been brought has not been determined or withdrawn.

9

A penalty must be paid before the end of the period of 30 days beginning with the day on which notification of the penalty is issued.