We will first give notice to the AO of our intention to give a direction. In deciding whether to serve a notice of intention to give a direction, we may consider the following:

• whether the AO accepts that it has failed or is likely to fail to comply with the relevant recognition condition,
• any actions already taken by us to encourage the AO to comply with the condition,
• any actions taken by the AO to comply with the condition, and/or
• whether any steps proposed by the AO to address its failure or likely failure will secure compliance with the condition and remove any relevant prejudice, and whether the timescale proposed by the AO for compliance is reasonable, taking into account the nature of the steps required and the degree of relevant prejudice or likely prejudice.

We will keep a record of the evidence considered.