Decision details

That the consultation takes place on the implementation of a fixed penalty of £70 to Council tax charge payers, permitted under the provisions of the Local Government Finance Act 1992, who intentionally or knowingly fail to notify the Council of any change affecting Council Tax Liability or Local Council Tax Benefit Scheme (LCTBS) without reasonable excuse be agreed.

The Council has powers under the Local Government Finance Act 1992 (Schedule 3) to impose civil penalties to those charge payers who wilfully neglect to inform the Council of changes which affect their Council Tax liability.

The Council aims to deliver value for money. Introduction of a penalty scheme will encourage customers to inform the Council of changes as soon as possible thus reducing collection costs.

These penalties would be applied using a consistent approach to those already in receipt of Housing Benefit where Civil Penalties are already imposed.

An alternative to the proposed approach would be for the Authority to undertake a fraud investigation under Detection of Fraud and Enforcement regulations.  This course of action would require investigation where it is evident that the behaviour of the charge payer warrants a criminal investigation. In order for these investigations to take place, the Council would need to employ an authorised officer or buy in a specific fraud service. The Authority still reserves the right where it is found that the evidence is strong enough for a prosecution, a fine could be imposed of 50% of the excess discount applied to the Council Tax levy, up to a value of £1000. However, the cost of this approach is likely to be in excess of the discount that has been fraudulently claimed and so the approach will not be cost effective in the majority of cases despite the deterrent effect.

In respect of Council Tax liability, in the most serious of cases only, where a person presents information that they know to be false with a view to obtaining a financial benefit to which they are not entitled, the person may be subject to prosecution under the Theft Act 1968 for obtaining a pecuniary advantage by deception.

A fraud investigation or prosecution under the Theft Act would only be used in those cases where it is established that a false statement or negligence by the charge payer justifies this approach.

None.