HMRC’s application for a tax-related penalty following a company’s continued failure to comply with an information notice was granted.

The respondent company (‘AML’) acted in relation to certain tax avoidance schemes utilised by UK contractors and sub-contractors. HM Revenue and Customs (HMRC) opened enquiries into the company tax returns of AML for accounting periods ended 31 December 2014 and 31 December 2015. 

On 28 February 2018, HMRC issued an information notice (under FA 2008, Sch 36) requiring the production of records. AML failed to produce the records.  On 30 April 2018, HMRC notified a £300 penalty to AML for failing to comply with the information notice. Daily penalties for non-compliance were subsequently notified to AML. HMRC believed that the potential tax at risk due to AML’s non-compliance with the information notice was £1.34 million. On 26 March 2019, HMRC made an application to the