Regulation 26 Application for increased daily default penalty
Paragraph (2) applies if—
a reporting entity or relevant partner is liable to a penalty under regulation 20 and a penalty is assessed under regulation 23, and
the failure in respect of which that assessment is made continues for more than 30 days beginning with the date on which notification of that assessment is issued.
Where this paragraph applies, an officer of Revenue and Customs may make an application to the tribunal for permission to assess an increased daily penalty under regulation 20 but must notify the reporting entity or relevant partner liable to the penalty of the application.
If the tribunal determines that an increased daily penalty may be assessed, then for each applicable day on which the failure continues, liability to a penalty under regulation 20 shall be for the increased amount determined by the tribunal.
The tribunal may not determine an amount exceeding £1,000 for each applicable day.
If the tribunal determines an increased daily penalty, Revenue and Customs must notify the reporting entity or relevant partner.
The notification under paragraph (5) must specify the future day from which the increased penalty is to apply.
That day and any subsequent day is an “applicable day” for the purposes of paragraphs (3) and (4).