# The Council Tax Reduction Schemes (Detection of Fraud and Enforcement) (Wales) Regulations 2013

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Welsh Statutory Instruments

# 2013 No. 588 (W.67)

COUNCIL TAX, WALES

# The Council Tax Reduction Schemes (Detection of Fraud and Enforcement) (Wales) Regulations 2013

Made

12 March 2013

Coming into force in accordance with regulation 1

The Welsh Ministers make the following Regulations in exercise of the powers conferred upon them by sections 14A, 14B, 14C                           and 113(1) and (2) of the Local Government Finance Act 1992(1).                        

In accordance with section 14D(3) of that Act, a draft of this instrument has been laid before and approved by a resolution                           of the National Assembly for Wales.                        

## Title, commencement and applicationE+W

1.—(1) The title of these Regulations is the Council Tax Reduction Schemes (Detection of Fraud and Enforcement) (Wales) Regulations                     2013.                  

(2) Subject to paragraph (3), these Regulations come into force the day after the day on which they are made.

(3) Regulations 7 and 9 come into force 14 days after the day on which these Regulations are made.

(4) These Regulations apply in relation to Wales.

Commencement Information

I1Reg. 1 in force at 13.3.2013, see **reg. 1(2)**

## InterpretationE+W

2.—(1) In these Regulations—                  

“the 1992 Act” (“*Deddf 1992*”) means the Local Government Finance Act 1992;                  

“the Contributions and Benefits Act” (“*y Ddeddf Cyfraniadau a Budd-daliadau*”) means the Social Security Contributions and Benefits Act 1992(2);                  

“the Default Scheme” (“*y Cynllun Diofyn*”) means the scheme set out in the Schedule to the Council Tax Reduction Schemes (Default Scheme) (Wales) Regulations 2012(3);                  

“the Prescribed Requirements Regulations” (“*y Rheoliadau Gofynion Rhagnodedig*”) means the Council Tax Reduction Schemes and Prescribed Requirements (Wales) Regulations 2012(4);                  

“application” (“*cais*”) means an application for a reduction under a council tax reduction scheme;                  

“authorised officer” (“*swyddog awdurdodedig*”) means a person acting in accordance with any authorisation for the purposes of these Regulations which is for the time                     being in force in relation to that person;                  

“council tax offence” (“*trosedd treth gyngor*”) means—                  

any criminal offence in connection with the making of an application;

any criminal offence in connection with the award of a reduction under a council tax reduction scheme;

any criminal offence committed for the purpose of facilitating the commission (whether or not by the same person) of an offence                              of the kind referred to in sub-paragraph (a) or (b);                           

any attempt or conspiracy to commit an offence of the kind referred to in sub-paragraph (a) or (b);

“council tax reduction scheme” (“*cynllun gostyngiadau'r dreth gyngor*”) means a scheme made by a billing authority in accordance with the Prescribed Requirements Regulations or which applies                     in default in accordance with paragraph 6(1)(e) of Schedule 1B to the Local Government Finance Act 1992.                  

(2) For the purposes of these Regulations—

(a)references to a document include references to anything in which information is recorded in electronic or any other form;                  

(b)the requirement that a notice given by an authorised officer be in writing is taken to be satisfied in any case where the                        contents of the notice—                  

(i)are transmitted to the recipient of the notice by electronic means; and                  

(ii)are received by the recipient in a form that is legible and capable of being recorded for future reference.                  

Commencement Information

I2Reg. 2 in force at 13.3.2013, see **reg. 1(2)**

## Authorisations by billing authoritiesE+W

3.—(1) Subject to paragraphs (2) and (3), a billing authority may grant an authorisation to an individual to exercise the powers                     conferred on an authorised officer under regulations 4 and 5.                  

(2) A billing authority may only grant an authorisation to an individual if the individual is—

(a)employed to exercise functions relating to council tax reduction schemes by that authority;                  

(b)employed to exercise functions relating to council tax reduction schemes by another billing authority or joint committee that                        carries out functions relating to council tax reduction schemes on behalf of that authority; or                  

(c)employed to exercise functions relating to council tax reduction schemes by a person authorised under the Local Authorities                        (Contracting Out of Tax Billing, Collection and Enforcement Functions) Order 1996(5) by—                  

(i)the authority in question; or                  

(ii)any such authority as is mentioned in sub-paragraph (b).                  

(3) An authorisation granted to an individual for the purposes of these Regulations—

(a)must be in writing and provided to that individual as evidence of that individual’s entitlement to exercise powers conferred                        by these Regulations;                  

(b)may contain provision as to the period for which the authorisation is to have effect; and                  

(c)may restrict the powers exercisable by virtue of the authorisation so as to prohibit their exercise except for particular                        purposes or in particular circumstances.                  

(4) An authorisation may be withdrawn at any time in writing by the authority that granted it.

(5) The written authorisation or withdrawal of an authorisation by a billing authority must be issued under the hand of either—

(a)the officer designated under section 4 of the Local Government and Housing Act 1989(6) as the head of the authority’s paid service; or                  

(b)the officer who is the authority’s chief finance officer (within the meaning of section 5(8) of that Act).                  

(6) An individual who is authorised for the purposes of regulation 4, is only entitled to exercise the powers which are conferred                     by that regulation for the purpose of preventing, detecting and securing evidence of the commission (whether by particular                     persons or more generally) of a council tax offence.                  

(7) An authorised officer is entitled to obtain information in accordance with arrangements entered into under regulation 5 only                     if that officer’s authorisation states that their authorisation applies for the purposes of that regulation.                  

(8) Nothing in this regulation conferring any power on an authorised officer requires that power to be exercised only in relation                     to cases in which the authority administering the council tax reduction scheme is the authority by which that officer’s authorisation                     was granted.                  

Commencement Information

I3Reg. 3 in force at 13.3.2013, see **reg. 1(2)**

## Power to require informationE+W

4.—(1) In the circumstances described in paragraph (2), an authorised officer may, by written notice, require a person to provide                     all such information described in the notice as is information of which that person has possession, or to which that person                     has access, and which it is reasonable for the authorised officer to require for the purpose described in regulation 3(6).                  

(2) The circumstances are that the authorised officer has reasonable grounds for suspecting that the person—

(a)is a person falling within paragraph (3) or (4); and                  

(b)has or may have possession of or access to any information about any matter that is relevant for the purpose described in                        regulation 3(6).                  

(3) The persons who fall within this paragraph are—

(a)any person who is or has been an employer or employee within the meaning of any provision made by or under the Contributions                        and Benefits Act;                  

(b)any person who is or has been a self-employed earner within the meaning of any such provision;                  

(c)any person who by virtue of any provision made by or under that Act falls, or has fallen, to be treated for the purposes of                        any such provision as a person within sub-paragraph (a) or (b);                  

(d)any person who is carrying on, or has carried on, any business involving the supply of goods for sale to the ultimate consumers                        by individuals not carrying on retail businesses from retail premises;                  

(e)any person who is carrying on, or has carried on, any business involving the supply of goods or services by the use of work                        done or services performed by persons other than employees of that person;                  

(f)any person who is carrying on, or has carried on, an agency or other business for the introduction or supply, to persons requiring                        them, of persons available to do work or to perform services;                  

(g)any local authority acting in their capacity as an authority responsible for the granting of any licence;                  

(h)any person who is or has been a trustee or manager of a personal or occupational pension scheme;                  

(i)the servants and agents of any such person as is specified in any of sub-paragraphs (a) to (h).                  

(4) The persons who fall within this paragraph are—

(a)any bank;                  

(b)the Director of Savings appointed under section 1(1) of the National Debt Act 1972(7);                  

(c)any person carrying on a business the whole or a significant part of which consists of the provision of credit (whether secured                        or unsecured) to members of the public;                  

(d)any insurer;                  

(e)any person carrying on a business the whole or a significant part of which consists in the provision to members of the public                        of a service for transferring money from place to place;                  

(f)any water undertaker or sewerage undertaker;                  

(g)any person who is the holder of—                  

(i)a licence under section 7 of the Gas Act 1986(8) to convey gas through pipes, or                  

(ii)a licence under section 7A(1) of that Act(9) to supply gas through pipes;                  

(h)any person who (within the meaning of the Electricity Act 1989(10)) distributes or supplies electricity;                  

(i)any person conducting any educational establishment or institution;                  

(j)any body the principal activity of which is to provide services in connection with admissions to educational establishments                        or institutions;                  

(k)the Student Loans Company;                  

(l)any servant or agent of any person mentioned in sub-paragraphs (a) to (k).                  

(5) Subject to the following provisions of this regulation, the powers conferred by this regulation on an authorised officer to                     require information from any person by virtue of that person falling within paragraph (4) are exercisable for the purpose                     only of obtaining information relating to a particular person identified (by name or description) by the officer.                  

(6) An authorised officer may not, in exercise of those powers, require any information from any person by virtue of his falling                     within paragraph (4) unless it appears to that officer that there are reasonable grounds for believing that the identified                     person to whom it relates is—                  

(a)a person who has committed, is committing or intends to commit a council tax offence;                  

(b)a person who is a member of the family of a person falling within sub-paragraph (a); or                  

(c)where a person falling within sub-paragraph (a) is polygamously married, any partner of that person.                  

(7) A person’s obligation to provide information in accordance with a notice under this regulation may only be discharged by the                     provision of that information, at such reasonable time and in such form as may be specified in the notice, to the authorised                     officer who—                  

(a)is identified by or in accordance with the terms of the notice; or                  

(b)has been identified, since the giving of the notice, by a further written notice given by the authorised officer who imposed                        the original requirement or another authorised officer.                  

(8) The power of an authorised officer under this regulation to require the provision of information includes a power to require                     the production and delivery up and (if necessary) creation of, or of copies of or extracts from, any such documents containing                     the information as may be specified or described in the notice imposing the requirement.                  

(9) No person is to be required under this regulation to provide—

(a)any information (whether in documentary form or not) that tends to incriminate that person or, in the case of a person who                        is married or is a civil partner, that person’s spouse or civil partner; or                  

(b)any information (whether in documentary form or not) in respect of which a claim to legal professional privilege would be                        successful in any proceedings.                  

(10) The powers conferred by this regulation are exercisable in relation to persons holding office under the Crown and persons                     in the service of the Crown, as they are exercisable in relation to other persons.                  

(11) In this regulation—

“bank” (“*banc*”) means—                  

a person who has permission under Part 4 of the Financial Services and Markets Act 2000(11) to accept deposits;                           

an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act(12) which has permission under paragraph 15 of that Schedule(13) (as a result of qualifying for authorisation under paragraph 12 of that Schedule(14)) to accept deposits or other repayable funds from the public; or                           

a person who does not require permission under that Act to accept deposits, in the course of that person’s business in the                              United Kingdom;                           

“credit” (“*credyd*”) includes a cash loan or any form of financial accommodation, including the cashing of a cheque;                  

“family” (“*teulu*”) has the meaning given in regulation 6 of the Prescribed Requirements Regulations;                  

“insurer” (“*yswiriwr*”) means—                  

a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of                              insurance; or                           

an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act(15), which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12                              of that Schedule) to effect or carry out contracts of insurance;                           

“partner” (“*partner*”) has the meaning given in regulation 2 of the Prescribed Requirements Regulations.                  

(12) The definitions of “bank” and “insurer” in paragraph (11) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;                  

(b)any relevant order under that section; and                  

(c)Schedule 2 to that Act.                  

Commencement Information

I4Reg. 4 in force at 13.3.2013, see **reg. 1(2)**

## Power to require electronic access to informationE+W

5.—(1) Subject to paragraph (3), a billing authority may, in the circumstances described in paragraph (2), require a person falling                     within regulation 4(4) to enter into arrangements under which an authorised officer is allowed access to electronic records                     kept by that person.                  

(2) The circumstances are that—

(a)the person falling within regulation 4(4) keeps electronic records;                  

(b)the records contain or are likely, from time to time, to contain information about any matter that is relevant to the purpose                        described in regulation 3(6); and                  

(c)facilities exist under which electronic access to those records is being provided, or is capable of being provided, by that                        person to other persons.                  

(3) An authorised officer may not seek to obtain any information in accordance with arrangements entered into under paragraph                     (1) other than information which—                  

(a)relates to a particular person; and                  

(b)could be the subject of any such requirement as may be imposed under regulation 4.                  

(4) The matters that may be included in the arrangements that a person is required to enter into under paragraph (1) are—

(a)requirements as to the electronic access to records that is to be made available to an authorised officer;                  

(b)requirements as to the keeping of records of the use that is made of the arrangements;                  

(c)requirements restricting the disclosure of information about the use that is made of the arrangements; and                  

(d)such other incidental requirements as the authority in question considers appropriate in connection with allowing access to                        records to an authorised officer.                  

(5) An authorised officer who is allowed access in accordance with any arrangements entered into under paragraph (1) is entitled                     to make copies of, and to take extracts from, any records containing information falling within paragraph (3).                  

Commencement Information

I5Reg. 5 in force at 13.3.2013, see **reg. 1(2)**

## Delay or obstruction of authorised officerE+W

6.—(1) A person (P) is to be guilty of an offence and liable on summary conviction to a fine not exceeding level 3 on the standard                     scale if P—                  

(a)intentionally delays or obstructs an authorised officer in the exercise of any power under regulation 4 or 5;                  

(b)refuses or fails, without reasonable excuse, to comply with any requirement under regulation 5 or with the requirements of                        any arrangements entered into in accordance with paragraph (1) of that regulation; or                  

(c)refuses or fails, without reasonable excuse, to provide any information or to provide any document when required to do so                        under regulation 4.                  

(2) Where P is convicted of an offence arising in the circumstances described in paragraph (1)(b) or (c) and the refusal or failure                     is continued by P after P’s conviction, P is to be guilty of a further offence and liable on summary conviction to a fine                     not exceeding £40 for each day on which the offence is continued.                  

Commencement Information

I6Reg. 6 in force at 13.3.2013, see **reg. 1(2)**

## False representations for obtaining a reductionE+W

7.  A person (P) is to be guilty of an offence and liable on summary conviction to a fine not exceeding level 4 on the standard                     scale, or to imprisonment for a term not exceeding 3 months, or to both if P, for the purpose of obtaining a reduction under                     a council tax reduction scheme whether for P or some other person—                  

(a)makes a statement or representation which P knows to be false; or                  

(b)provides, or knowingly causes or knowingly allows to be provided, any document or information which P knows to be false.                  

## Failure to notify a change of circumstancesE+W

8.—(1) A person (P) is to be guilty of an offence if—                  

(a)there has been a change of circumstances affecting P’s entitlement to a reduction under an authority’s council tax reduction                        scheme or to the amount of such a reduction;                  

(b)P is required to give notice of the change to the authority under the provision included in the authority’s council tax reduction                        scheme by virtue of paragraph 7 of Schedule 13 to the Prescribed Requirements Regulations or by paragraph 113 of the Default                        Scheme;                  

(c)P knows that the change affects P’s entitlement to a reduction under a council tax reduction scheme or to the amount of such                        a reduction; and                  

(d)P fails to give a prompt notification of that change in the manner required by the provision included in the authority’s council                        tax reduction scheme by virtue of paragraph 7 of Schedule 13 to the Prescribed Requirements Regulations or by paragraph 113                        of the Default Scheme.                  

(2) A person (P) will be guilty of an offence if—

(a)there has been a change of circumstances affecting another person’s (A) entitlement to a reduction under a council tax reduction                        scheme or to the amount of such a reduction;                  

(b)A is required to give notice of the change to the authority under the provision included in the authority’s council tax reduction                        scheme by virtue of paragraph 7 of Schedule 13 to the Prescribed Requirements Regulations or by paragraph 113 of the Default                        Scheme;                  

(c)P knows that the change affects an entitlement of A to a reduction under a council tax reduction scheme or to the amount of                        such a reduction; and                  

(d)P causes or allows A to fail to give a prompt notification of that change in the manner required by the provision included                        in the authority’s council tax reduction scheme by virtue of paragraph 7 of Schedule 13 to the Prescribed Requirements Regulations                        or by paragraph 113 of the Default Scheme.                  

(3) Subject to paragraph (4), for the purposes of paragraphs (1) and (2) a notification of a change is prompt if it is given within                     a period of 21 days beginning with the day on which the change occurs, or as soon as reasonably practicable after the change                     occurs, whichever is later.                  

(4) Where a change occurs before these Regulations come into force, a notification of a change is prompt if it is given within                     a period of 21 days beginning with the day on which these Regulations come into force, or as soon as reasonably practicable                     after the change occurs, whichever is later.                  

(5) A person guilty of an offence under this regulation is to be liable on summary conviction to a fine not exceeding level 4                     on the standard scale, or to imprisonment for a term not exceeding 3 months, or to both.                  

Commencement Information

I8Reg. 8 in force at 13.3.2013, see **reg. 1(2)**

## Dishonest representations for obtaining a reductionE+W

9.—(1) A person (P) is to be guilty of an offence if P, for the purpose of obtaining a reduction under a council tax reduction scheme                     whether for P or some other person, dishonestly—                  

(a)makes a false statement or representation; or                  

(b)provides, or causes or allows to be provided, any document or information which is false in a material particular.                  

(2) A person guilty of an offence under this regulation is to be liable—

(a)on summary conviction to a fine not exceeding level 5 on the standard scale, or to imprisonment for a term not exceeding 6                        months, or to both; or                  

(b)on conviction on indictment to imprisonment for a term not exceeding seven years or to a fine or to both.                  

## Dishonest failure to notify a change of circumstancesE+W

10.—(1) A person (P) is to be guilty of an offence if—                  

(a)there has been a change of circumstances affecting P’s entitlement to a reduction under an authority’s council tax reduction                        scheme or to the amount of such a reduction;                  

(b)P is required to give notice of the change to the authority under the provision included in the authority’s council tax reduction                        scheme by virtue of paragraph 7 of Schedule 13 to the Prescribed Requirements Regulations or by paragraph 113 of the Default                        Scheme;                  

(c)P knows that the change affects P’s entitlement to a reduction under a council tax reduction scheme or to the amount of such                        a reduction; and                  

(d)P dishonestly fails to give a prompt notification of that change in the manner required by the provision included in the authority’s                        council tax reduction scheme by virtue of paragraph 7 of Schedule 13 to the Prescribed Requirements Regulations or by paragraph                        113 of the Default Scheme.                  

(2) A person (P) will be guilty of an offence if—

(a)there has been a change of circumstances affecting another person’s (A) entitlement to a reduction under a council tax reduction                        scheme or to the amount of such a reduction;                  

(b)A is required to give notice of the change to the authority under the provision included in the authority’s council tax reduction                        scheme by virtue of paragraph 7 of Schedule 13 to the Prescribed Requirements Regulations or by paragraph 113 of the Default                        Scheme;                  

(c)P knows that the change affects an entitlement of A to a reduction under a council tax reduction scheme or to the amount of                        such a reduction; and                  

(d)P dishonestly causes or allows A to fail to give a prompt notification of that change in the manner required by the provision                        included in the authority’s council tax reduction scheme by virtue of paragraph 7 of Schedule 13 to the Prescribed Requirements                        Regulations or by paragraph 113 of the Default Scheme.                  

(3) Subject to paragraph (4), for the purposes of paragraphs (1) and (2) a notification of a change is prompt if it is given within                     a period of 21 days beginning with the day on which the change occurs, or as soon as reasonably practicable after the change                     occurs, whichever is later.                  

(4) Where a change occurs before these Regulations come into force, a notification of a change is prompt if it is given within                     a period of 21 days beginning with the day on which these Regulations come into force, or as soon as reasonably practicable                     after the change occurs, whichever is later.                  

(5) A person guilty of an offence under this regulation is to be liable—

(a)on summary conviction to a fine not exceeding level 5 on the standard scale, or to imprisonment for a term not exceeding 6                        months, or to both; or                  

(b)on conviction on indictment to imprisonment for a term not exceeding seven years or to a fine or to both.                  

Commencement Information

I10Reg. 10 in force at 13.3.2013, see **reg. 1(2)**

## Offences by bodies corporateE+W

11.—(1) Where an offence under these Regulations, which has been committed by a body corporate is proved to have been committed with                     the consent or connivance of, or to be attributable to any neglect on the part of, a director, manager, secretary or other                     similar officer of the body corporate, or any person who was purporting to act in any such capacity, the director, manager,                     secretary or other similar officer, as well as the body corporate, is to be guilty of that offence and liable to be proceeded                     against accordingly.                  

(2) Where the affairs of a body corporate are managed by its members, paragraph (1) applies in relation to the acts and defaults                     of a member in connection with the member’s functions of management as if the member were a director of the body corporate.                  

Commencement Information

I11Reg. 11 in force at 13.3.2013, see **reg. 1(2)**

## Legal proceedingsE+W

12.—(1) Proceedings brought for an offence under these Regulations may be begun at any time within the period of 3 months from the                     date on which evidence, sufficient in the opinion of the prosecutor to justify a prosecution for the offence, comes to the                     prosecutor’s knowledge or within a period of 12 months from the commission of the offence, whichever period last expires.                  

(2) For the purposes of paragraph (1) a certificate of the prosecutor as to the date on which such evidence as is mentioned in                     that paragraph came to the prosecutor’s knowledge is to be conclusive evidence of that date.                  

(3) Paragraph (1) does not impose any restriction on the time when proceedings may be begun for an offence under regulation 9                     or 10.                  

Commencement Information

I12Reg. 12 in force at 13.3.2013, see **reg. 1(2)**

## Penalty as alternative to prosecution (excess reduction)E+W

13.—(1) A billing authority may give a person (P) a written notice including the information required by regulation 15, stating that                     P is invited to agree to pay a penalty, where P’s liability to pay council tax in respect of a chargeable dwelling has been                     reduced under a council tax reduction scheme and it appears to the authority that—                  

(a)the amount by which P’s liability to pay council tax was reduced under the scheme is greater than the amount of the reduction                        to which P was entitled under the scheme (an “excess reduction”);                  

(b)the award of the excess reduction was attributable to an act or omission on the part of P; and                  

(c)there are grounds for instituting proceedings against P for an offence (under these Regulations or any other enactment) relating                        to the award of the excess reduction.                  

(2) Subject to paragraph (3), the amount of the penalty is 50% of the amount of the excess reduction (rounded down to the nearest                     whole penny), subject to—                  

(a)a minimum amount of £100; and                  

(b)a maximum amount of £1000.                  

(3) For the purpose of paragraph (2), the excess reduction is to be calculated on a daily basis beginning with the first day in                     respect of which the excess reduction is awarded and ending with the day on which the authority knew or ought reasonably to                     have known that an excess reduction has been awarded.                  

(4) If P agrees to pay the penalty specified in a written notice in the manner so specified—

(a)the amount of the penalty is to be recoverable by the authority; and                  

(b)no proceedings are to be instituted against P for an offence (under these Regulations or any other enactment) relating to                        the excess reduction.                  

(5) P may withdraw P’s agreement to pay a penalty specified in a written notice by notifying the billing authority, in the manner                     specified by the authority, at any time during the period of 14 days beginning with the day on which P agrees to pay it.                  

(6) Where P has, under paragraph (5), withdrawn the agreement—

(a)so much of the penalty as has already been recovered is to be repaid; and                  

(b)paragraph (4) is not to apply.                  

(7) Where, after P has agreed to pay the penalty, it is subsequently decided that an excess reduction has not been awarded, the                     penalty is to be quashed and so much of the penalty as has already been recovered is to be repaid.                  

(8) Subject to paragraph (9), where, after P has agreed to pay the penalty, the amount of the excess reduction is revised—

(a)so much of the penalty as has already been recovered is to be repaid; and                  

(b)paragraph (4) is no longer to apply by reason of the agreement.                  

(9) If a new agreement is made under paragraph (1) in relation to the revised excess reduction, the amount already recovered by                     way of penalty, to the extent that it does not exceed the amount of the new penalty, may be treated as recovered under the                     new agreement instead of being repaid.                  

Commencement Information

I13Reg. 13 in force at 13.3.2013, see **reg. 1(2)**

## Penalty as alternative to prosecution (acts or omissions)E+W

14.—(1) A billing authority may give a person (P) a written notice stating that P is invited to agree to pay a penalty, where it appears                     to the billing authority that—                  

(a)there are grounds for instituting proceedings against P for an offence (under these Regulations or any other enactment) relating                        to an act or omission on the part of P in relation to a council tax reduction scheme; and                  

(b)the act or omission could have resulted in the amount of council tax P is liable to pay being reduced under a council tax                        reduction scheme by an amount greater than the amount of reduction to which P was entitled under the scheme.                  

(2) The amount of the penalty is £100.

(3) If P agrees to pay the penalty specified in a written notice in the manner so specified—

(a)the amount of the penalty is to be recoverable by the authority; and                  

(b)no proceedings are to be instituted against P for an offence (under these Regulations or any other enactment) relating to                        the act or omission.                  

(4) P may withdraw P’s agreement to pay a penalty specified in a written notice by notifying the billing authority, in the manner                     specified by the authority, at any time during the period of 14 days beginning with the day on which P agrees to pay it.                  

(5) Where P has, under paragraph (4), withdrawn the agreement—

(a)so much of the penalty as has already been recovered is to be repaid; and                  

(b)paragraph (3) is not to apply.                  

Commencement Information

I14Reg. 14 in force at 13.3.2013, see **reg. 1(2)**

## NoticesE+W

15.  The notice to which regulations 13 and 14 refer must contain the following information—                  

(a)the manner specified by the billing authority by which P may—                  

(i)agree to pay a penalty;                  

(ii)notify the withdrawal of P’s agreement to pay a penalty;                  

(b)that if P wishes to withdraw the agreement, P must notify the withdrawal to the billing authority within 14 days (including                        the date of the agreement);                  

(c)that if an agreement is withdrawn, so much of the penalty as has already been recovered will be repaid and P will no longer                        be immune from proceedings for an offence;                  

(d)that the payment of a penalty does not give P immunity from prosecution in relation to any other excess reduction or (in a                        case to which regulation 14 refers) any other act or omission;                  

(e)that if P alleges that there is no power in the case concerned to impose a penalty of the amount imposed, P may appeal to                        a valuation tribunal under paragraph 3(4) of Schedule 3 to the 1992 Act(16) against the imposition;                  

(f)in a case to which regulation 13 refers—                  

(i)that if P pays the penalty specified in the written notice in the manner specified in the written notice, the proceedings                        to which regulation 13(1)(c) refers will not be instituted against P;                  

(ii)that the penalty only applies to the award of a reduction under the billing authority’s council tax reduction scheme greater                        than the amount of reduction to which the person was entitled under the scheme;                  

(iii)that the penalty only applies where it appears to the billing authority that the award of the excess reduction was attributable                        to an act or omission by P and that there are grounds for instituting proceedings for an offence relating to the excess reduction;                  

(iv)that the penalty is 50% of the amount of the excess reduction (subject to the minimum and maximum amounts set out in regulation                        13(2));                  

(v)that the penalty is payable in addition to repayment of the excess reduction;                  

(vi)the method by which the excess reduction is recoverable;                  

(vii)that if it is subsequently decided that an excess reduction has not been awarded, so much of the penalty as has already been                        recovered will be repaid;                  

(viii)that if the amount of the excess reduction is revised by the billing authority, except as covered by a new agreement to pay                        the revised penalty, so much of the penalty as has already been recovered will be repaid and P will no longer be immune from                        proceedings for an offence;                  

(g)in a case to which regulation 14 refers—                  

(i)that if P pays the penalty specified in the written notice in the manner specified in the written notice, the proceedings                        to which regulation 14(1)(a) refers will not be instituted against P;                  

(ii)that the penalty only applies where it appears to the billing authority that—                  

(aa)there are grounds for instituting proceedings against P for an offence relating to an act or omission on the part of P in                        relation to a council tax reduction scheme; and                  

(bb)the act or omission could have resulted in the amount of council tax P is liable to pay being reduced under a council tax                        reduction scheme by an amount greater than the amount of reduction to which P was entitled under the scheme;                  

(iii)that the penalty is £100; and                  

(iv)the method by which the penalty is recoverable.                  

Commencement Information

I15Reg. 15 in force at 13.3.2013, see **reg. 1(2)**

## Penalties for incorrect statementsE+W

16.—(1) A billing authority may impose a penalty of £70 on a person (P) where—                  

(a)P negligently makes an incorrect statement or representation, or negligently gives incorrect information or evidence—                  

(i)in or in connection with an application; or                  

(ii)in connection with the award of a reduction under a council tax reduction scheme;                  

(b)P fails to take reasonable steps to correct the error;                  

(c)the error results in an award of a reduction under a council tax reduction scheme which is greater than the amount of reduction                        to which P was entitled (an “excess reduction”); and                  

(d)P has not been charged with an offence or cautioned, or been given a notice under regulations 13 to 15 in respect of the excess                        reduction.                  

(2) A penalty may not be imposed under this regulation in relation to any act or omission which occurs before the day on which                     these Regulations come into force.                  

(3) A penalty under this regulation is to be paid to the authority imposing it.

(4) An authority may quash a penalty imposed by it under this regulation.

Commencement Information

I16Reg. 16 in force at 13.3.2013, see **reg. 1(2)**

## Penalties for failure to notify a change of circumstancesE+W

17.—(1) A billing authority may impose a penalty of £70 on a person (P) where—                  

(a)P, without reasonable excuse, fails to give a prompt notification of a relevant change of circumstances to the authority in                        accordance with requirements imposed on P under the provision included in the authority’s council tax reduction scheme by                        virtue of paragraph 7 of Schedule 13 to the Prescribed Requirements Regulations or under paragraph 113 of the Default Scheme;                  

(b)the failure results in an award of a reduction under a council tax reduction scheme which is greater than the amount of reduction                        to which P was entitled (an “excess reduction”); and                  

(c)P has not been charged with an offence or cautioned, or been given a notice under regulations 13 to 15, in respect of the                        excess reduction.                  

(2) In this regulation, “relevant change of circumstances” (“*newid perthnasol yn yr amgylchiadau*”), in relation to P, means a change of circumstances which P might reasonably be expected to know might affect P’s entitlement                     to a reduction under the authority’s council tax reduction scheme or the amount of such a reduction.                  

(3) Subject to paragraph (4), for the purposes of paragraph (1)(a), a notification of a change is prompt if it is given within                     a period of 21 days beginning with the day on which the change occurs, or a soon as reasonably practicable after the change                     occurs, whichever is later.                  

(4) Where a change occurs before these Regulations come into force, a notification of a change is prompt if it is given within                     a period of 21 days beginning with the day on which these Regulations come into force, or as soon as reasonably practicable                     after the change occurs, whichever is later.                  

(5) A penalty under this regulation is to be paid to the authority imposing it.

(6) An authority may quash a penalty imposed by it under this regulation.

Commencement Information

I17Reg. 17 in force at 13.3.2013, see **reg. 1(2)**

Carl Sargeant

Minister for Local Government and Communities, one of the Welsh Ministers

12 March 2013

## Explanatory Note

(This note is not part of the Regulations)

The Council Tax Reduction Schemes and Prescribed Requirements (Wales) Regulations 2012 require each billing authority in Wales                     to make a scheme (a council tax reduction scheme) specifying the reductions which are to apply to amounts of council tax payable                     by persons or classes of persons considered to be in financial need. The Council Tax Reduction Schemes (Default Scheme) (Wales)                     Regulations 2012 prescribe a scheme (the default scheme) which is to take effect if a billing authority fails to make its                     own council tax scheme. These Regulations are made under sections 14A to 14C of the Local Government Finance Act 1992, and                     make provision for the creation of offences and for powers to require information and to impose penalties in connection with                     council tax reduction schemes and the default scheme.                  

Regulation 3 provides that a billing authority may grant an authorisation to an individual to exercise the powers conferred                     on an authorised officer under regulations 4 and 5.                  

Regulation 4 enables officers authorised under regulation 3 to require information from specified persons for the purpose                     of preventing, detecting and securing evidence of the commission of offences connected with an application for or award of                     a reduction under a council tax reduction scheme or the default scheme.                  

Regulation 5 enables a billing authority to require the persons specified in regulation 4(4) to enter into arrangements under                     which authorised officers are allowed access to electronic records. Such arrangements may be required where it appears to                     a billing authority that facilities exist under which access to those records is being provided or is capable of being provided                     and the records contain or are likely to contain information about a matter relevant to the purpose of preventing, detecting                     and securing evidence of the commission of offences connected with an application for or award of a reduction under a council                     tax reduction scheme or the default scheme.                  

Regulation 6 provides that it is an offence to intentionally delay or obstruct an authorised officer in the exercise of any                     power under regulation 4 or 5 to require information. It is also an offence for a person to refuse or fail (without reasonable                     excuse) to comply with a requirement to enter into arrangements for access to electronic records under regulation 5, or to                     provide information when required to do so under regulation 4.                  

Regulation 7 creates an offence where a person makes a statement or representation which that person knows to be false for                     the purpose of obtaining a reduction under a council tax reduction scheme or the default scheme. It is also an offence to                     provide or knowingly cause or allow to be provided a document or information which is false for that purpose.                  

Regulation 8 creates an offence where there has been a change of circumstances which a person knows affects that person’s                     entitlement to a reduction, and that person fails to give notice of a change as required by an authority’s council tax reduction                     scheme or the default scheme. It also provides that it is an offence to cause or allow a person to fail to give this notification.                  

Regulation 9 creates an offence where a person dishonestly makes a false statement or representation for the purpose of obtaining                     a reduction under a council tax reduction scheme or the default scheme. It is also an offence to dishonestly provide or cause                     or allow to be provided a document or information which is false for that purpose.                  

Regulation 10 creates an offence where there has been a change of circumstances which a person knows affects that person’s                     entitlement to a reduction, and that person dishonestly fails to give notice of a change as required by an authority’s council                     tax reduction scheme or the default scheme. It also provides that it is an offence to dishonestly cause or allow a person                     to fail to give this notification.                  

Regulation 11 makes provision for offences under the Regulations committed by bodies corporate.

Regulation 12 sets out the time limit for commencing proceedings for an offence under the Regulations.

Regulations 13 to 15 enable a billing authority to invite a person to agree to pay a penalty as an alternative to prosecution                     for an offence relating to the award of a reduction under a council tax reduction scheme to which a person was not entitled,                     or an offence relating to an act or omission which could have resulted in such an award.                  

Regulations 16 and 17 enable a billing authority to impose a penalty of £70 on a person in circumstances such as where a person                     negligently makes an incorrect statement in connection with an application for a reduction under a council tax reduction scheme                     or the default scheme or where a person fails to notify a change of circumstances when required to do so under such a scheme.                  

The Welsh Ministers' Code of Practice on the carrying out of Regulatory Impact Assessments was considered in relation to these                     Regulations. As a result, a regulatory impact assessment has been prepared as to the likely costs and benefits of complying                     with these Regulations. A copy can be obtained at Local Government Finance and Public Service Performance Division, Welsh                     Government, Cathays Park, Cardiff, CF10 3NQ.                  

1

1992 c. 14; sections 14A, 14B and 14C were inserted by section 14 of the Local Government Finance Act 2012 c. 17; subsections (1) and (2) of section 113 were amended by section 127 of, and paragraphs 40 and 52 of Schedule 7 to the Local                              Government Act 2003 c. 26, and section 80 of the Localism Act 2011 c. 20.                           

2

1992 c. 4.                           

3

S.I. 2012/3145 (W. 317).                           

4

S.I. 2012/3144 (W. 316).                           

5

S.I. 1996/1880 as amended by S.I. 2013/ 502.                           

6

1989 c. 42. Amendments have been made to section 4 but they are not relevant to these Regulations.                           

7

1972 c. 65.                           

8

1986 c. 44.                           

9

Section 7A was inserted by section 6(1) of the Gas Act 1995 (c. 45). Subsection (1) was subsequently amended by section 3(2) of the Utilities Act 2000 (c. 27).                           

10

1989 c. 29.                           

11

2000 c. 8.                           

12

Sub-paragraph (b) was substituted by regulation 29 of, and paragraph 2 of Schedule 3 to, S.I. 2006/3221.                           

13

Sub-paragraph (1) of paragraph 15 was amended by S.I. 2007/3253. Other amendments made to paragraph 15 are not relevant to these Regulations.                           

14

Sub-paragraph (9) of paragraph 12 was inserted by S.I. 2012/1906. Other amendments made to paragraph 12 are not relevant to these Regulations.                           

15

Sub-paragraph (d) was amended by regulation 6 of S.I. 2004/3379.                           

16

1992 c. 14; sub-paragraph (4) was inserted by section 14 of the Local Government Finance Act 2012 (c. 17).