Taxes Consolidation Act 1997 section 1062

Proceedings where penalty recoverable cannot be definitely ascertained

Section 1062 allows Revenue to commence penalty recovery proceedings even where the exact amount of the penalty has not yet been finally determined.

• Penalty recovery proceedings may be initiated even though the underlying tax liability has not been finally ascertained.
• The penalty amount may be uncertain because it is calculated by reference to an income tax or corporation tax liability that is itself unresolved.
• Where the court considers the penalty is recoverable, it may adjourn the proceedings until the relevant tax amount is finalised.
• The court will not give judgment or make a payment order for the penalty until the underlying tax has been finally ascertained.