CH176130 | Sanctionable conduct by tax advisers: Process if we suspect sanctionable conduct

If we have reasonable grounds to suspect a tax adviser is engaging in, or has engaged in, sanctionable conduct, we may issue a file access notice. This allows us to access a tax adviser’s working papers to determine whether the tax adviser has engaged in sanctionable conduct and the extent of that sanctionable conduct.

If we conclude that the adviser has engaged in sanctionable conduct, we will:

• issue a conduct notice to notify the tax adviser of our decision

• charge the tax adviser a penalty for their sanctionable conduct

• publish the tax adviser's details (where the penalty is more than £7,500)

We must have issued a conduct notice before we can charge a penalty for sanctionable conduct. However, there may be times when we do not have to issue a file access notice – for example, because we already have enough evidence to conclude, on the balance of probabilities, that the adviser is engaging, or has engaged, in sanctionable conduct.

There are three types of penalty that may be issued to a tax adviser in relation to sanctionable conduct powers:

• penalties for failing to comply with a file access notice

• penalties for providing a document containing an inaccuracy in response to a file access notice

• penalties for sanctionable conduct

Furthermore, a person can be prosecuted for concealing, destroying or otherwise disposing of material documents:

• requested in a file access notice

• where we have told them that we are likely to require that document

We must publish the tax adviser's details where they have been charged a penalty for sanctionable conduct of more than £7,500. Where an adviser has been charged a penalty of £7,500 (the minimum penalty) we must not publish their details.