EM4514 - Penalties: Introduction: "Abatement" and "Mitigation"

Both abatement and mitigation mean 바카라 사이트średuction바카라 사이트ť in everyday speech, but they have distinct meanings in the context of our penalties which should be observed to avoid confusion.

(i) 바카라 사이트śAbatement is a before thing바카라 사이트ť

Abatement is the exercise, when dealing with a maximum-amount penalty (see EM4506), of taking that maximum and reducing it for Disclosure, Co-operation and Seriousness.

  • Abatement is HMRC바카라 사이트™s method of arriving at the appropriate level for the penalty in any particular case, within the statutory maximum.
  • Abatement derives from TMA70/S100(1).
  • Abatement is done in contemplation of either a contract settlement (in calculating the expected offer) or a formal penalty determination.
  • The procedure is at EM6051+.

(ii) 바카라 사이트śMitigation is an after thing바카라 사이트ť

Mitigation is the HMRC Board바카라 사이트™s general power to reduce any penalty at TMA70/S102

A taxpayer may make a plea for mitigation of a penalty

  • after a penalty has been formally determined, and
  • after the taxpayer has exhausted (or abandoned) his appeal rights.

The procedure is at EM5310.