Taxes Management Act 1970 section 101

Evidence for purposes of proceedings relating to penalties

Section 101 explains how a finalised tax assessment can be used as evidence in penalty proceedings, removing the need to re-prove the underlying tax position.

• Once a tax assessment can no longer be changed on appeal or by a court order, it becomes sufficient evidence for penalty proceedings.
• This applies to penalty provisions under Part X of the Taxes Management Act 1970 and Schedule 18 to the Finance Act 1998.
• The finalised assessment is taken as proof that the amounts charged arose or were received as stated in the assessment.
• HMRC does not need to separately prove the underlying tax liability when pursuing penalties based on such an assessment.