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.