Section 199 | Increased daily default penalty

(1)An officer of Revenue and Customs may apply to the tribunal for a determination that an increased penalty should be available under section 194(4) in respect of a person’s failure to comply with an information notice if—

(a)a penalty has been imposed under section 194(3) (daily penalties for continuing failure) in respect of the failure,

(b)the failure continues after the end of the period of 30 days beginning with the day on which notification of the penalty under section 194(3) was issued (see paragraph 46 to Schedule 36 to FA 2008), and

(c)the officer has notified the person of their intention to apply to the tribunal under this section.

(2)If the tribunal decides that an increased penalty should be available under section 194(4) in respect of a person’s failure, the tribunal must determine—

(a)the amount of the increased penalty, and

(b)the day from which it is to be applicable.

(3)The increased penalty is available under section 194(4) in respect of the failure—

(a)from the day determined by the tribunal, and

(b)as though the figure in that subsection were replaced with the amount of the increased penalty.

(4)An increased penalty under this section may not exceed—

(a)in relation to a notice under section 183 (financial institutions), £1,000, or

(b)otherwise, £5,000.

(5)In determining the amount of the increased penalty, the tribunal must have regard to—

(a)the likely cost to the person of complying with the notice,

(b)any benefits to the person of not complying with the notice, and

(c)any benefits to anyone else resulting from the person’s non-compliance.

(6)If the tribunal makes a determination under subsection (2), an officer of Revenue and Customs must notify the person to whom it relates of—

(a)the amount of the increased penalty, and

(b)the day from which it is to be applicable.