The penalty for a VAT or excise wrongdoing, see CH91200, is based on the amount of

VAT or the amount representing VAT shown on the invoice, or

excise duty unpaid because of the wrongdoing, or

for Landfill Tax, the amount of the Landfill Tax due on the disposal.

This tax or duty is the Potential Lost Revenue or PLR.

You work out the amount of the penalty by applying an appropriate percentage, see CH94600 to the potential lost revenue, see CH94250.

Where the wrongdoing is the supply of a product knowing that it will be misused, see CH91450, the maximum penalty percentage is 100% of the PLR.

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