What is the new tax-related penalty?
In some cases, the maximum daily penalties may be ineffective because the benefit of withholding information or documents is greater than the cost of the penalty, for example, when a large amount of unpaid tax is at stake. In these circumstances there is a new penalty that takes into account the likely amount of the improper tax advantage gained by not providing the required information. This type of penalty can only be imposed by the Upper Tribunal, which is equivalent to the High Court.
