Taxation (International and Other Provisions) Act 2010 section 36

Procedure on appeal

Section 36 sets out the procedure for appealing against a penalty imposed under the transfer pricing documentation rules, including time limits, how the tribunal may deal with the appeal, and the extent to which it can adjust penalty reductions for cooperation.

• A person must give notice of appeal to an officer of HMRC within 30 days of being notified of the penalty.
• The tribunal may confirm or cancel a decision that a penalty is payable, and where the appeal is against the amount, it may substitute a different decision that HMRC had power to make.
• If the tribunal substitutes its own decision, it may apply the same or a different percentage reduction for cooperation, but can only apply a different reduction if it considers HMRC's original decision on that point was flawed in a judicial review sense.
• The general appeal provisions in Part 5 of the Taxes Management Act 1970 apply to these penalty appeals in the same way as they apply to appeals against corporation tax assessments.