Regulation 14 Suspension of penalties

(1)

HMRC may suspend a penalty under regulation 12(1) or (4) by notice in writing to the donor intermediary liable to the penalty.

(2)

A notice must specify—

(a)

that the penalty is to be suspended,

(b)

a period of suspension not exceeding two years, and

(c)

conditions of suspension to be complied with by the donor intermediary.

(3)

HMRC may suspend a penalty only if compliance with a condition of suspension would help the donor intermediary to avoid becoming liable to further penalties under these Regulations.

(4)

A condition of suspension may specify—

(a)

action to be taken, and

(b)

a period within which it must be taken.

(5)

On the expiry of the period of suspension—

(a)

if the donor intermediary satisfies HMRC that the conditions of suspension have been complied with, the suspended penalty is cancelled, and

(b)

otherwise, the suspended penalty becomes payable.

(6)

If, during the period of suspension of a penalty under paragraph (1), the donor intermediary becomes liable for another penalty under these Regulations, the suspended penalty becomes payable.