SDLTM86430 - Compliance: Penalties

Culpability: General: Provision of information during an enquiry

Provision of information and documents

Culpability under FA03/SCH10/PARA8 will only be an issue if there has been negligence in making the original land transaction return.

Subsequent actions and behaviour cannot create negligence retrospectively. However, any such failure to co-operate would certainly be relevant to the consideration of the appropriate net penalty loading for that negligence.

If the information had been sought using information powers, then there are specific penalties relating to any failures (for example, for failure to comply with an FA03/SCH10/PARA14 notice, penalties under FA03/SCH10/PARA16 may be due. If that information is negligently incorrect FA03/S95 may apply).

Provision of incomplete information in response to enquiries

This may be done carelessly in which case there might be negligence or it might be done carefully, i.e. deliberately, in which case something more serious might be happening. Much depends on whether the failing is exceptional or typical behaviour and the compliance caseworker will have to take a view on this.

Incorrect Information provided in response to an enquiry

If the information is ambiguous and the compliance caseworker is misled into believing the land transaction return is correct then the purchaser has a duty to correct this.

Allowing an incorrect land transaction return to stand is culpable. If the information is unambiguous then the reply may amount to a lie, which takes it into potential fraud territory.