Paragraph 34 Penalties payable in connection with this Schedule

Schedule 41 to FA 2008 (penalties: failure to notify and certain VAT and excise wrongdoing) is amended in accordance with sub-paragraphs (2) and (3).

In the table in paragraph 1 (failure to notify etc), after the entry related to climate change levy, insert—

“

Carbon border adjustment mechanism

Obligation of a person under paragraph 2 of Schedule 17 to FA 2026.

”

In paragraph 7, after sub-paragraph (9) insert—

“(10)

In the case of a relevant obligation under paragraph 2 of Schedule 17 to FA 2026 (which relates to the carbon border adjustment mechanism), the potential lost revenue is the amount of the tax (if any) for which P is liable for the period—

(a)

beginning with the end of the period specified in paragraph 2(4) of Schedule 17 of FA 2026, and

(b)

ending with the day on which P registers under paragraph 2 of Schedule 17 to FA 2026 or HMRC otherwise becomes fully aware of P’s obligation to register.”

No failure to comply with an obligation under paragraph 2 of this Schedule “involves an offshore matter” for the purposes of Schedule 41 to FA 2008 (see paragraph 6A of that Schedule).

Paragraph 16(1) of Schedule 41 to FA 2008 (penalties: failure to notify etc) has effect in its application to CBAM as if for “shall” there were substituted “may”.