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Home / De-Voil /Part V5 Compliance, enforcement and appeals /Division V5.3 Penalties /Civil penalties relating to VAT / V5.326 Sanctions for persistently uncooperative large businesses
Commentary

V5.326 Sanctions for persistently uncooperative large businesses

Part V5 Compliance, enforcement and appeals

FA 2016, Sch 19 Part 3 provides for sanctions persistently uncooperative large businesses.

A business which persistently engages in uncooperative behaviour which gives rise to a significant tax issue may result in HMRC issuing the business with a warning notice. Subsequent uncooperative behaviour may result in the issuing of a special measures notice, the effect of which is that:

  1. Ìý

    •ÌýÌýÌýÌý an inaccuracy in a document may, for the purposes of FA 2007, Sch 24 (penalties for errors) be regarded as resulting from a failure to take reasonable care

  2. Ìý

    •ÌýÌýÌýÌý information relating to the business may be published

A more detailed description of the provisions is set out below.

Application

The legislation applies to:

  1. Ìý

    •ÌýÌýÌýÌý a UK group, ie two or more companies or other bodies corporate (other than limited liability partnerships) whose head is incorporated in the UK1

  2. Ìý

    •ÌýÌýÌýÌý a UK company, ie a company formed and registered under CA 2006 other than an open-ended investment company within the meaning of

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