Penalties

Decisions, appeals, mitigation and recovery
21
1
It is for the Inland Revenue to impose a penalty under section 20.
2
If the Inland Revenue decide to impose such a penalty the decision must (subject to the permitted maximum) set it at such amount as, in their opinion, is appropriate.
3
A decision to impose such a penalty may not be made after the end of the period of six years beginning with the date on which the penalty was incurred or began to be incurred.
4
The Inland Revenue must give notice of such a decision to the person on whom the penalty is imposed.
5
The notice must state the date on which it is given and give details of the right to appeal against the decision under section 22.
6
After the notice has been given, the decision must not be altered except on appeal.
7
But the Inland Revenue may, in their discretion, mitigate any penalty under section 20.
8
A penalty under section 20 becomes payable at the end of the period of 30 days beginning with the date on which notice of the decision is given.
9
On an appeal under section 22 against a decision under this section, the General Commissioners or Special Commissioners may—
a
if it appears that no penalty has been incurred, set the decision aside,
b
if the amount set appears to be appropriate, confirm the decision,
c
if the amount set appears to be excessive, reduce it to such other amount (including nil) as they consider appropriate, or
d
if the amount set appears to be insufficient, increase it to such amount not exceeding the permitted maximum as they consider appropriate.
10
An appeal from a decision of the Commissioners under subsection (9) lies, at the instance of the person on whom the penalty was imposed, to—
a
the High Court, or
b
in Scotland, the Court of Session as the Court of Exchequer in Scotland,
and on such an appeal the court has a similar jurisdiction to that conferred on the Commissioners by that subsection.
11
A penalty is to be treated for the purposes of Part 6 of the Taxes Management Act 1970 (c. 9) (collection and recovery) as if it were tax charged in an assessment and due and payable.