Schedule 2B – Penalties for contraventions of Part 6A
31.Schedule 2B sets out the penalties that can be levied for contraventions of the scheme.
Liability to a penalty
32.Paragraph 1 states that penalties are payable for contraventions of the scheme (selling without authorisation and buying from an unapproved wholesaler).
Amount of penalty
33.Paragraph 2 subparagraphs 1 to 3 set out the levels of penalty that can be charged, depending on whether the offence is considered deliberate and concealed, deliberate but not concealed or otherwise. Subparagraph 4 defines “deliberate and concealed” and “deliberate but not concealed”.
Reductions for disclosure
34.Paragraph 3 subparagraph 1 provides for reductions in penalties for disclosure.
35.Paragraph 3 subparagraph 2 describes how a person may disclose a contravention by advising HMRC, assisting in highlighting any additional contraventions and providing all records requested.
36.Paragraph 3 subparagraph 3 describes how a disclosure will be considered “unprompted” if it is notified to HMRC prior to them identifying a contravention. All other cases will be considered “prompted”.
37.Paragraph 4 provides that following disclosure the Commissioners must reduce the penalty to reflect the quality of the disclosure. It also sets out the minimum levels of the penalties. The amount that the penalty can be reduced by depends upon the quality of the disclosure and whether it is prompted or unprompted.
Special reduction
38.Paragraph 5 states that under special circumstances, not including the ability to pay, HMRC may reduce a penalty.
Assessment
39.Paragraph 6 sets out how penalties will be assessed. HMRC will notify the person by way of a penalty notice, setting out the reason for the penalty. Penalties raised will be due 30 days after the date of issue of the penalty notice. Two or more contraventions may be assessed as one contravention for the purposes of raising a penalty. A penalty must be raised within 12 months of HMRC discovering the contravention.
Reasonable excuse
40.Paragraph 7 states that a penalty will not be levied for non-deliberate contraventions if a person is able to demonstrate that they have a valid excuse. However, it will not be considered a valid excuse that a person entrusted someone else to fulfil their responsibilities, for example an agent or accountant, unless the person is able to demonstrate that they took appropriate steps to prevent any contravention.
Companies: officer’s liability
41.Paragraph 8 subparagraph 1 describes how penalties or a proportion of a penalty that is levied on a company, can also be levied against an officer of that company, if the officer was responsible or partly responsible for a contravention.
42.Paragraph 8 subparagraphs 3 to 5 sets out the definition of an “officer” for a body corporate, limited liability partnership and all other cases.
Double jeopardy
43.Paragraph 9 states a penalty will not be levied for a contravention where a person has already been convicted of an offence for the same contravention.
The maximum amount
44.Paragraph 10 gives powers to change by regulations the maximum amount of a penalty under paragraph 2(1) (Amount of penalty) where HM Treasury consider that there has been a change in the value of money. Penalties at the revised amount cannot be levied for a contravention that occurred prior to the date that the new amount comes into force.
Appeal tribunal
45.Subsection (6) inserts a new paragraph (ea) to the meaning of “relevant decision” as provided for in section 13A(2) of Finance Act 1994 so that a decision to issue a penalty is subject to review and appeal.
46.Subsection (7) provides that any decision as to approval or the conditions under which a person is approved is a decision falling within Schedule 5 to Finance Act 1994 for the purposes of review and appeal.
47.Subsection (8) provides for the amendments to ALDA 1979 to come into force on and after the date of Royal Assent to Finance Act 2015. Subsection 9 states that the requirement for a person obliged to apply to be registered as an alcohol wholesaler comes into effect from 1 January 2016. The window for applications will run from 1 October to 31 December 2015. Subsection (11) states that applications will not be accepted prior to 1 October 2015.
48.Subsection (10) states that the requirement for persons to have to check the approval status of persons from whom they purchase wholesale alcohol will come into effect on a date to be stated in the regulations.
49.Subsection (12) states that a wholesaler’s obligations under the scheme do not come into effect until such time as their application has been considered and determined.
