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

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 application

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.

Interpretation

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[^f00002];

• “the Default Scheme” (“y Cynllun Diofyn”) means the scheme set out in the Schedule to the Council Tax Reduction Schemes (Default Scheme) (Wales) Regulations 2013;

• “the Prescribed Requirements Regulations” (“y Rheoliadau Gofynion Rhagnodedig”) means the Council Tax Reduction Schemes and Prescribed Requirements (Wales) Regulations 2013;

• “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.

Authorisations by billing authorities

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• (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[^f00005] 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 chief executive appointed under section 54 of the Local Government and Elections (Wales) Act 2021; 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.

Power to require information

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• (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[^f00007];

• (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[^f00008] to convey gas through pipes, or

• (ii) a licence under section 7A(1) of that Act[^f00009] to supply gas through pipes;

• (h) any person who (within the meaning of the Electricity Act 1989[^f00010]) 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 4A of the Financial Services and Markets Act 2000 to accept deposits; ora 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 4A of the Financial Services and Markets Act 2000 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.

Power to require electronic access to information

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• (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).

Delay or obstruction of authorised officer

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• (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.

False representations for obtaining a reduction

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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 circumstances

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• (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