Section 194 | Penalty for failing to comply with a notice

(1)A recipient of an information notice is liable to a penalty if the recipient—

(a)fails to comply with the notice, and

(b)does so without reasonable excuse.

(2)The penalty under subsection (1) is—

(a)in relation to a notice under section 183 (financial institutions), £300;

(b)otherwise, £5,000.

(3)If a failure referred to in subsection (1) continues after the day on which a penalty is imposed in respect of it, the recipient is liable to a further penalty for each day on which the failure continues.

(4)The penalty under subsection (3) is—

(a)in relation to a notice under section 183 (financial institutions), an amount not exceeding £60;

(b)otherwise, an amount not exceeding £1,000.

(5)Before imposing a penalty under this section, an officer of Revenue and Customs must—

(a)notify the recipient of the fact that the officer considers subsection (1) or (3) to apply, and

(b)allow the recipient a period of 30 days beginning with the date of notification to make representations to HMRC.

(6)This section does not apply in relation to a failure to comply with a requirement imposed under section 185 (restriction on disclosure of notices).