CBTM05155 - Misrepresentation and
failure to disclose – General Considerations: Causation
SS A Act 1992, section 71, SS A Act (NI) section 69
Duggan v Chief Adjudication Officer
R(SB)3/81, R(SB)21/82, R(SB)15/87
For an overpayment to be recoverable, Her Majesty’s
Revenue and Customs have to show that it was caused by
- a misrepresentation, or
- a failure to disclose a material
fact.
An overpayment may have more than one cause. There may be
various events which, had they occurred, would have prevented an
overpayment. Provided that one of those events is a failure to
disclose or a misrepresentation by the claimant or person acting on
their behalf, the overpayment is recoverable.
Causation (continued)
The causal link is not broken where the department
- fails to make the necessary enquiries
- makes wrong assumptions about the
claimant’s circumstances which give rise to an overpayment,
or
- performs their duties negligently in some
way. For example, fail to link two cases in the same household or
fail to act on information provided by a third party.
