IHTM36226 | Negotiating a penalty: establishing fraud

If a material part of the abated penalty depends on the existence of fraud (IHTM36291) and you and your B2 manager are satisfied that a case can be made out, you should explain to the taxpayer or their agent, usually at a settlement interview

• what is meant by fraud

• why you consider that the taxpayer is guilty of the offence, and

• what difference it makes to the penalty.

If neither the taxpayer nor the agent actively dissents, you may regard the offence as ‘established’. Even if there is initial dissent, you may consider accepting an offer

• which includes a penalty based on fraud

• made after the allegation has been put to them

• by a taxpayer who understands that the penalty is higher because of fraud.

If the taxpayer is not prepared to sign a letter of offer (IHTM36331) in the usual form with an acknowledgement of default, they might be prepared to accept an alternative form of words (IHTM36337) which refers to the allegation of default.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

(This content has been withheld because of exemptions in the Freedom of Information Act 2000) (This content has been withheld because of exemptions in the Freedom of Information Act 2000) (This content has been withheld because of exemptions in the Freedom of Information Act 2000)