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A basic requirement before a penalty assessment is issued for a breach of walking possession order, is that the officer or a bailiff has attended the premises and confirmed that the goods were not available to complete the distress.

If you have identified a case which you feel qualifies for a Section 68 penalty you should consider the facts and you may find the following points helpful.
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Factors which support the issue of a penalty

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• »Ê¹ÚÌåÓýapp tax remains unpaid.
• »Ê¹ÚÌåÓýappre are no other goods available to make a second distress visit worthwhile.
• »Ê¹ÚÌåÓýapp estimated forced sale value of the goods removed by the trader is at least 10% of the debt.
• »Ê¹ÚÌåÓýapp value of the goods removed exceeds £1000

Factors which oppose the issue of a penalty

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• »Ê¹ÚÌåÓýapp trader is normally compliant and has not previously breached an agreement.
• »Ê¹ÚÌåÓýapp estimated forced sale of the property removed or sold by the trader is less than 10% of the debt.
• An un-guaranteed cheque offered in payment has been refused without being sent for special clearance.
• Value of goods removed is less than £1000
• »Ê¹ÚÌåÓýappre are goods available to make a second distress visit worthwhile.
• »Ê¹ÚÌåÓýapp trader remits the proceeds of the sale of the items removed towards the settlement of the debt.
• »Ê¹ÚÌåÓýapp trader pays the outstanding debt, charges and fees.
• »Ê¹ÚÌåÓýapp goods are still on the trader’s premises but the officer or bailiff cannot gain access.

»Ê¹ÚÌåÓýapp rate of penalty

If the person in default is in breach of the undertaking contained in a walking possession agreement, he shall be liable to a penalty equal to half of the tax or other amount referred to as if it were tax due, for example, the amount for which distress was levied.
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Approval

»Ê¹ÚÌåÓýapp issue of a penalty assessment is always subject to local management agreement orapproval.
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