SDLTM86200 - Compliance: Penalties

Legislation: Penalty for incorrect or uncorrected returns FA03/SCH10/PARA8: Approach

The purchaser is responsible for the accuracy of their land transaction return. If a return is incorrect, the reason for the error should be established in order to confirm whether or not the return was submitted fraudulently or negligently. See SDLTM86415.

A penalty in a negotiated settlement can only be sought where culpability is established or accepted.

Under FA03/SCH10/PARA6 a person can amend their land transaction return if it is found to be incorrect.

The amendment can be made at any time before the end of the period of 12 months beginning with the filing date. But penalties can still apply if it can be shown that the original return was submitted fraudulently or negligently.

Every person who completes a land transaction return form is under an obligation to supply the particulars required by the form and is supplied with notes which are intended to assist in the completion of the form.

Each return must be certified that it is correct and complete to the best of their knowledge by the purchaser. The purchaser is clearly under an obligation to take the necessary trouble to read carefully both the land transaction return and the notes that accompany it.

If a purchaser omits more information than can be accounted for by genuine errors or honest misunderstanding it can be said that the purchaser in question could not have had an honest belief in the truth or accuracy of the return, and must be guilty of at least negligence.

The purchaser cannot delegate responsibility for their return and must sign it personally.

A plea that errors or omissions are due to poor work by an agent should normally be rejected and the purchaser should be asked why an incorrect return was signed and what checks were applied personally.