Taxes Management Act 1970 section 100D

Penalty proceedings before court

Section 100D sets out the circumstances in which HMRC can bring penalty proceedings before the High Court (or Court of Session in Scotland) where fraud is involved, and what happens if fraud is not ultimately proved.

• Where HMRC considers that a penalty arises because of fraud by the person concerned or any other person, penalty proceedings may be brought before the High Court or the Court of Session in Scotland.
• Proceedings must be brought in the name of the Attorney General (England and Wales), the Lord Advocate (Scotland), or the Attorney General for Northern Ireland, unless brought under the Crown Proceedings Act 1947 in the name of HMRC itself.
• All proceedings under this section are treated as civil proceedings by the Crown under Part II of the Crown Proceedings Act 1947.
• If the court does not find fraud proved but still considers the person liable to a penalty, it may determine an appropriate penalty despite fraud being the original reason the matter was brought to court.