IEIM8000610 - Introduction
The penalty regime for the CARF is set out in Part 3, 鈥淧enalties for breach of obligations鈥�, of the (the Regulations). Where an RCASP or a cryptoasset user, fails to meet their obligations under the Regulations, they may be subject to a penalty. Part 3 also sets out the reasonable excuse rules and the appeal procedures.
Before charging a penalty, whether it is an initial penalty or a daily penalty, HMRC will discuss the failure with the RCASP or self-certificate provider, to understand the reasons for the failure and if there is a reasonable excuse for the failure. When deciding on the level of the penalty, HMRC will take into account all relevant factors including the behaviour of the RCASP or self-certificate provider.