Taxation (International and Other Provisions) Act 2010 section 35

Right to appeal against penalty or its amount

Section 35 of Schedule 7A establishes the right of a person to appeal against a penalty imposed under the transfer pricing documentation requirements, whether that appeal is against the decision to impose the penalty itself or against the amount of the penalty.

• A person who has been charged a penalty under the transfer pricing documentation rules has a formal right of appeal.
• The appeal must be made by giving notice to HMRC.
• The appeal can challenge the decision that a penalty is payable at all — in other words, whether the penalty should have been imposed in the first place.
• Alternatively, the appeal can challenge the amount of the penalty, even if the person accepts that some penalty is due.