CCM10760 - Penalties and Interest: Incorrect Claims - Meaning of Deliberate and Systematic Over-Claims - Enquiries or Examinations
Where an over-claim arose from an error which was the result of a Deliberate and Systematic Over-claim we will charge a penalty of 50% of the over-claim. (This text has been withheld because of exemptions in the Freedom of Information Act 2000)
There are two criteria for a penalty in this category:
- A tax credit over-claim must have arisen from a Deliberate Error (ie not a Failure to Take Reasonable Care or a Serious Error); and
- A Deliberate Error must have been repeated, or a range of different Deliberate Errors committed over time.
To satisfy criterion 2, you must have identified a Deliberate Error on a previous enquiry or examination. If you find a number of Deliberate Errors in a year or different years during the course of a single enquiry or examination that is not a ‘Deliberate and Systematic Over-claim’, but you should tell the claimant that they are likely to receive a higher penalty if they repeat the behaviour.
