SolvedTOBCSC8500 | Penalty notices: Factor 8 - Potential loss of duty and VAT on notified seizures during the six month period following the issuing of an initial notice. Maximum score 20 points.
From HM Revenue & Customs · Tobacco: Anti-smuggling or the duty to avoid facilitating smuggling
This factor is scored on the potential duty and VAT that would have been due on the notified seizures:
Potential revenue loss
| Amount | Score |
|---|---|
| £1 to £3 million | Score up to 5 |
| Over £3 million to £6 million | Score up to 10 |
| Over £6 million | Score up to 20 |
Summary of factors 1- 8
| No. | Brief description | Max points |
|---|---|---|
| 1 | Breach of duty not to facilitate smuggling | 25 |
| 2 | Action taken to ensure compliance with duty | 10 |
| 3 and 4 | Supply chain policy (content and compliance) | 15 |
| 5 | Action on specified brands, countries and persons | 5 |
| 6 | Information on specified brands, countries and persons | 5 |
| 7 | Notified seizures (number size and nature) | 20 |
| 8 | Potential loss of duty and VAT. | 20 |
| 1- 8 | Total factors 1 - 8 | 100 |
The maximum non-compliance score from the total of all 8 factors is 100 points. The basic penalty is thus calculated by expressing the computed non-compliance score as a fraction of 100 and multiplying this by the maximum penalty of £5 million.