When can HMRC penalise a company for a wrongdoing committed by an agent?
Where an agent is acting for a person or company, the person or company remain responsible for ensuring that no wrongdoing occurs. Examples of agents include employees, and advisers such as tax advisers. That means the person or company can be penalised if the agent carelessly or deliberately: • misuses a product so that a higher rate of excise duty is payable, or • handles goods subject to unpaid excise duty, unless the person or company took reasonable care to avoid the wrongdoing committed by their agent. Reasonable care to avoid this could for example include setting up systems and procedures to prevent the wrongdoing, and training staff how to use them properly.
