UT (Tax & Chancery) UT-2022-000134 UT-2022-000135 UT-2022-000137 - [2025] UKUT 00214 (TCC)

The Tribunal has the power to determine at its discretion what (if any) is the appropriate action for the Authority to take, including a determination as to whether or not to impose a financial penalty and, if so, the amount of such penalty. The Tribunal is not bound by the Authority's policy when making an assessment of a financial penalty on a reference, but it pays the policy due regard when carrying out its overriding objective of doing justice between the parties. In so doing the Tribunal looks at all the circumstances of the case.

We have followed the Authority’s five-step framework in determining the amount of the penalties. We have, however, concluded that we should, in the interests of fairness and justice, depart from the minimum amount of the penalty of £100,000 at Step 2 in respect of Mr Sheth, as explained below.