Local Government Finance Bill (HL Bill 44)

(b) section 109B of that Act (powers to require information);

(c) section 110A of that Act (authorisations by local authorities to
exercise powers of investigation);

(d) section 110AA of that Act (power of local authority to require
5electronic access to information);

(e) section 121DA of that Act (interpretation of Part 6 of that Act);

(f) section 191 of that Act (interpretation of that Act).

(6) This section does not affect the operation of Schedule 2 (administration
of council tax).

(7) 10In this section “council tax purposes” means purposes relating to a
person’s liability to pay council tax.

14B Regulations about offences

(1) The appropriate authority may by regulations provide for the creation
of offences that may be committed by a person in prescribed
15circumstances—

(a) by intentionally delaying or obstructing a person in the exercise
of a power conferred by regulations under section 14A(1);

(b) by refusing or failing to comply with any requirement under
regulations under section 14A(1)(b) or with the requirements of
20any arrangements entered into in accordance with such
regulations;

(c) by refusing or failing, when required to do so by or under this
Act or by or under regulations made under this Act, to provide
any information or document in connection with a person’s
25liability to pay council tax;

(d) by making a false statement or representation in connection
with such liability;

(e) by providing, or causing or allowing to be provided, in
connection with such liability, a document or information
30which is false;

(f) by failing to notify, or causing or allowing a person to fail to
notify, a matter that is relevant to such liability (including in
particular any matter that is required to be notified by or under
this Act or by or under regulations made under this Act).

(2) 35Regulations under subsection (1)(a), (b) or (c)—

(a) must provide for an offence under the regulations to be triable
only summarily;

(b) may not provide for such an offence to be punishable with a fine
exceeding level 3 on the standard scale.

(3) 40Regulations under subsection (1)(a), (b) or (c)—

(a) may provide, in a case where a person is convicted of an offence
under the regulations and the act or omission constituting the
offence continues after the conviction, for the person to be guilty
of a further offence and liable on summary conviction to a daily
45fine;

(b) may not provide for the daily fine to exceed £40.

(4) Regulations under subsection (1)(d), (e) or (f) that create an offence that
may only be committed by a person acting dishonestly—

(a) must provide for the offence to be triable summarily or on
indictment;

(b) may not provide for the offence to be punishable on summary
conviction with imprisonment for a term exceeding 12 months
5or with a fine exceeding the statutory maximum;

(c) may not provide for the offence to be punishable on conviction
on indictment with imprisonment for a term exceeding 7 years
(and may provide for the offence to be punishable on conviction
on indictment with a fine).

(5) 10Regulations under this section that create an offence within subsection
(4) that may be committed before the date that section 154(1) of the
Criminal Justice Act 2003 comes into force may not provide for such an
offence committed before that date to be punishable on summary
conviction with imprisonment for a term exceeding 6 months.

(6) 15Regulations under subsection (1)(d), (e) or (f) that create an offence that
may be committed by a person acting otherwise than dishonestly—

(a) must provide for the offence to be triable only summarily;

(b) may not provide for the offence to be punishable with
imprisonment for a term exceeding 51 weeks or with a fine
20exceeding level 5 on the standard scale.

(7) Regulations under this section that create an offence within subsection
(6) that may be committed before the date that section 281(5) of the
Criminal Justice Act 2003 comes into force may not provide for such an
offence committed before that date to be punishable with
25imprisonment for a term exceeding 3 months.

(8) The appropriate authority may by regulations make provision—

(a) about defences to an offence under regulations under this
section;

(b) about the commission by a body corporate of such an offence;

(c) 30about the conduct of proceedings for such an offence;

(d) about the time limits for bringing such proceedings;

(e) about the determination of issues arising in such proceedings;

(f) about other matters of procedure and evidence in relation to
such offences.

(9) 35The provision that may be made by regulations under this section
includes, in particular, provision equivalent to—

(a) provision made by a relevant enactment, or

(b) provision that is capable of being made under a relevant
enactment,

40with such modifications as the appropriate authority thinks fit

(10) For the purposes of subsection (9), each of the following enactments as
it had effect on the day on which the Local Government Finance Act
2012 was passed is a “relevant enactment”—

(a) section 111 of the Social Security Administration Act 1992
45(offences relating to powers under that Act);

(b) section 111A of that Act (dishonest representations for
obtaining benefit etc);

(c) section 112 of that Act (false representations for obtaining
benefit etc.);

(d) section 115 of that Act (offences by bodies corporate);

(e) section 116 of that Act (legal proceedings);

(f) 5section 121DA of that Act (interpretation of Part 6 of that Act);

(g) section 191 of that Act (interpretation of that Act).

14C Regulations about penalties

(1) The appropriate authority may by regulations make provision for the
imposition of a penalty by a billing authority on a person where in
10prescribed circumstances—

(a) that person’s act or omission results or could result in the
amount of council tax that a person (“P”) is liable to pay being
reduced or subject to a discount, and

(b) P is not or will not be entitled to that reduction or discount.

(2) 15The appropriate authority may by regulations make provision for the
imposition of a penalty by a billing authority on a person where in
prescribed circumstances—

(a) that person’s act or omission results or could result in a
dwelling in respect of which a person (“P”) would otherwise be
20liable to pay council tax being treated as an exempt dwelling for
a period, and

(b) the dwelling is not or will not be an exempt dwelling for all or
part of that period.

(3) Regulations under this section must—

(a) 25make provision with the effect that a penalty may only be
imposed on a person where the person agrees to the imposition
of the penalty as an alternative to criminal proceedings being
taken against the person in respect of the act or omission to
which the penalty relates,

(b) 30make provision with the effect that a penalty may only be
imposed on a person where the person has not been charged
with an offence in respect of the act or omission to which the
penalty relates, or

(c) make provision within paragraph (a) and (b).

(4) 35Where—

(a) regulations under this section specify a sum as a penalty (or a
minimum or maximum penalty), and

(b) it appears to the Treasury that there has been a change in the
value of money since those regulations were made or (as the
40case may be) the last occasion when an order under this
subsection was made,

the Treasury may by order substitute for that sum such other sum as
appears to them to be justified by the change.

(5) An order under subsection (4) does not apply in relation to any act done
45or omission which began before the date on which the order comes into
force.

(6) This section does not affect the operation of paragraph 1 of Schedule 3
(penalties).

(7) The provision that may be made by regulations under this section
includes, in particular, provision equivalent to—

(a) provision made by a relevant enactment, or

(b) provision that is capable of being made under a relevant
5enactment,

with such modifications as the appropriate authority thinks fit.

(8) For the purposes of subsection (7), each of the following is a “relevant
enactment”—

(a) section 115A of the Social Security Administration Act 1992
10(penalty as alternative to prosecution);

(b) section 115B of that Act (penalty as alternative to prosecution:
colluding employers etc);

(c) section 115C of that Act (penalties in respect of incorrect
statements etc);

(d) 15section 115D of that Act (penalties in respect of failures to
disclose information);

(e) section 121DA of that Act (interpretation of Part 6 of that Act);

(f) section 191 of that Act (interpretation of that Act).

(9) The reference in subsection (8)—

(a) 20to section 115C or 115D of the Social Security Administration
Act 1992 is to that section without the repeals in it contained in
Part 1 of Schedule 14 to the Welfare Reform Act 2012;

(b) to any other provision of that Act is to the provision as it had
effect on the day on which the Local Government Finance Act
252012 was passed.

14D Sections 14A to 14C: supplementary

(1) In sections 14A to 14C—

• “the appropriate authority” means—

  (a)

  the Secretary of State, in relation to England, and

  (b)

  30the Welsh Ministers, in relation to Wales;

• “prescribed”, in relation to regulations made by the Welsh
  Ministers, means prescribed by such regulations.

(2) A statutory instrument containing regulations made by the Secretary of
State under any of sections 14A to 14C may not be made unless a draft
35of the instrument has been laid before and approved by a resolution of
each House of Parliament.

(3) A statutory instrument containing regulations made by the Welsh
Ministers under any of sections 14A to 14C may not be made unless a
draft of the instrument has been laid before and approved by a
40resolution of the National Assembly for Wales.”

(3) In section 18(1)(c) (death of person liable for penalty), after “him” insert “under
regulations under section 14C or”.

(4) In section 113(3) (application of negative procedure to orders and regulations
under the Act), after “except in the case of regulations under section” insert
45“14A, 14B, 14C or”.

(5) Schedule 3 (penalties) is amended as follows.

(6) After paragraph 3(1) (appeals) insert—

“(1A) A person (“P”) may appeal to a valuation tribunal if aggrieved by the
imposition on P of a penalty under regulations under section 14C,
unless P agreed to the imposition of the penalty as an alternative to
5criminal proceedings being taken against P in respect of the act or
omission to which the penalty relates.”

(7) After paragraph 3(3) insert—

“(4) Where a penalty is imposed on a person (“P”) under regulations
under section 14C, and P alleges that there is no power in the case
10concerned to impose a penalty of the amount imposed, P may appeal
to a valuation tribunal under this sub-paragraph against the
imposition.”

(8) In paragraph 6(1) and (5) (regulations about collection) after “paragraph 1 or 2
above” insert “or under regulations under section 14C”.

(9) 15In Schedule 11 to the LGFA 1988 (tribunals), in paragraph 10A(1)(d) (orders),
after “under” insert “regulations under section 14C of or”.

14 Calculation of billing authority’s council tax base

(1) In section 34 of the LGFA 1992 (calculations to be made in setting council tax:
additional calculations where special item relates to part only of billing
20authority’s area), after subsection (4) insert—

“(5) Regulations under subsection (4) that apply to billing authorities in
England may contain different rules for the purposes of calculating
item TP in relation to different kinds of special item.”

(2) In section 45 of the LGFA 1992 (calculations to be made in setting council tax:
25additional calculations where special item relates to part only of major
precepting authority’s area), after subsection (5) insert—

“(5A) Regulations under subsection (4) that apply to authorities in England
may contain different rules for the purposes of calculating item TP in
relation to different kinds of special item.

(5B) 30Regulations under subsection (4) that make provision by virtue of
subsection (5A) may make consequential amendments to this Act.”

15 Provision of information about council tax

(1) In Schedule 2 to the LGFA 1992, paragraph 2 (collection of council tax) is
amended as follows.

(2) 35After sub-paragraph (4)(i) (but before the word “and” following that
paragraph) insert—

“(ia) that the authority must publish prescribed information in the
prescribed manner;”.

(3) In sub-paragraph (4)(j), after “when it serves a notice” insert “or on the request
40of the person”.

Information sharing

16 Power for HMRC to supply information for purposes of council tax

(1) Schedule 2 to the LGFA 1992 (administration) is amended as follows.

(2) After paragraph 15 insert—

“15A (1) 5A Revenue and Customs official may supply information which is
held by the Revenue and Customs in connection with a function of
the Revenue and Customs to a qualifying person for prescribed
purposes relating to council tax.

(2) The following are qualifying persons for the purpose of this
10paragraph—

(a) a billing authority in England;

(b) a person authorised to exercise any function of such an
authority relating to council tax;

(c) a person providing services to such an authority relating to
15council tax.

(3) Information supplied under this paragraph may be used for another
prescribed purpose relating to council tax.

(4) Information supplied under this paragraph may be supplied to
another qualifying person for a prescribed purpose relating to
20council tax (whether or not that is a purpose for which it was
supplied).

(5) In this paragraph—

• “Revenue and Customs official”,

• “the Revenue and Customs”, and

• 25“function of the Revenue and Customs”,

have the same meaning as in section 18 of the Commissioners for
Revenue and Customs Act 2005.

15B (1) A Revenue and Customs official may supply information which is
held by the Revenue and Customs in connection with a function of
30the Revenue and Customs to a qualifying person for prescribed
purposes relating to council tax.

(2) The following are qualifying persons for the purpose of this
paragraph—

(a) a billing authority in Wales;

(b) 35a person authorised to exercise any function of such an
authority relating to council tax;

(c) a person providing services to such an authority relating to
council tax.

(3) Information supplied under this paragraph may be used for another
40prescribed purpose relating to council tax.

(4) Information supplied under this paragraph may be supplied to
another qualifying person for a prescribed purpose relating to
council tax (whether or not that is a purpose for which it was
supplied).

(5) In this paragraph—

• “Revenue and Customs official”, “the Revenue and Customs”
  and “function of the Revenue and Customs” have the same
  meaning as in section 18 of the Commissioners for Revenue
  5and Customs Act 2005;

• “prescribed” means prescribed by regulations made by the
  Welsh Ministers.

(6) Regulations under this paragraph must not be made except with the
consent of the Commissioners for Her Majesty’s Revenue and
10Customs.

(7) A statutory instrument containing regulations under this paragraph
is subject to annulment in pursuance of a resolution of the National
Assembly for Wales.

15C (1) A Revenue and Customs official may supply information which is
15held by the Revenue and Customs in connection with a function of
the Revenue and Customs to a qualifying person for prescribed
purposes relating to council tax.

(2) The following are qualifying persons for the purpose of this
paragraph—

(a) 20a local authority;

(b) a person authorised to exercise any function of such an
authority relating to council tax;

(c) a person providing services to such an authority relating to
council tax.

(3) 25Information supplied under this paragraph may be used for another
prescribed purpose relating to council tax.

(4) Information supplied under this paragraph may be supplied to
another qualifying person for a prescribed purpose relating to
council tax (whether or not that is a purpose for which it was
30supplied).

(5) In this paragraph—

• “Revenue and Customs official”, “the Revenue and Customs”
  and “function of the Revenue and Customs” have the same
  meaning as in section 18 of the Commissioners for Revenue
  35and Customs Act 2005;

• “prescribed” means prescribed by regulations made by the
  Scottish Ministers.

(6) Regulations under this paragraph must not be made except with the
consent of the Commissioners for Her Majesty’s Revenue and
40Customs.

(7) Regulations under this paragraph—

(a) are subject to the negative procedure; and

(b) may make—

(i) different provision for different purposes, including
45different provision for different areas or for different
authorities, and

(ii) such incidental, consequential, transitional or
supplementary provision as the Scottish Ministers
think necessary or expedient.

15D (1) A person to whom sub-paragraph (2) applies is guilty of an offence
5if the person discloses without lawful authority any information—

(a) which comes to the person by virtue of paragraph 15A, 15B
or 15C, and

(b) which relates to a particular person.

(2) This sub-paragraph applies to—

(a) 10a qualifying person for the purpose of paragraph 15A, 15B or
15C;

(b) a person who is or has been a director, member of the
committee of management, manager, secretary or other
similar officer of a person within paragraph (a);

(c) 15a person who is or has been an employee of such a person.

(3) A person guilty of an offence under this paragraph is liable—

(a) on conviction on indictment, to imprisonment for a term not
exceeding 2 years or a fine, or both;

(b) on summary conviction, to imprisonment for a term not
20exceeding 12 months or a fine not exceeding the statutory
maximum, or both.

(4) It is not an offence under this paragraph—

(a) to disclose information in the form of a summary or collection
of information so framed as not to enable information
25relating to any particular person to be identified from it;

(b) to disclose information which has previously been disclosed
to the public with lawful authority.

(5) It is a defence for a person (“D”) charged with an offence under this
paragraph to prove that at the time of the alleged offence—

(a) 30D believed that D was making the disclosure in question with
lawful authority and had no reasonable cause to believe
otherwise, or

(b) D believed that the information in question had previously
been disclosed to the public with lawful authority and had no
35reasonable cause to believe otherwise.

(6) For the purposes of this paragraph, “lawful authority” has the
meaning given by section 123 of the Social Security Administration
Act 1992.

(7) In relation to an offence under this paragraph committed in England
40and Wales before the commencement of section 154(1) of the
Criminal Justice Act 2003 (increase in maximum term that may be
imposed on summary conviction of offence triable either way) the
reference in sub-paragraph (3)(b) to 12 months is to be taken as a
reference to 6 months.”

(3) 45In paragraph 11 (supply of information to authorities: England and Wales),

after sub-paragraph (1) insert—

“(1A) Information may be prescribed under sub-paragraph (1)(d) by
reference to—

(a) how the person concerned came to be in possession or control
5of the information;

(b) the purpose for which it is requested by the authority.”

(4) In paragraph 12 (supply of information to authorities: Scotland), after sub-
paragraph (1) insert—

“(1A) Information may be prescribed under sub-paragraph (1)(d) by
10reference to—

(a) how the person concerned came to be in possession or control
of the information;

(b) the purpose for which it is requested by the authority.”

(5) In paragraph 16 (supply of information by authorities), after sub-paragraph (2)
15insert—

“(3) Information may be prescribed under sub-paragraph (2)(c) by
reference to—

(a) how the first-mentioned authority obtained the information;

(b) the purpose for which the first-mentioned authority believes
20that the information would be useful to the other authority.”

(6) In Schedule 11 to the LGFA 1988, in paragraph 8(3)(ea) (regulations about
procedure before tribunals)—

(a) for sub-paragraph (iv) substitute—

“(iv) paragraph 15A or 15B of Schedule 2 to the 1992 Act or
25regulations under that Schedule;”,

(b) omit the “or” following that sub-paragraph, and

(c) after “1996” insert “or of information supplied under section 131 of the
Welfare Reform Act 2012 for purposes relating to council tax;”.

17 Power for HMRC to supply information for purposes of rates in Northern
30Ireland

(1) A Revenue and Customs official may supply information which is held by the
Revenue and Customs in connection with a function of the Revenue and
Customs to a qualifying person for prescribed purposes relating to rates.

(2) The following are qualifying persons—

(a) 35the Department of Finance and Personnel in Northern Ireland (“DFP”);

(b) the Northern Ireland Housing Executive (“NIHE”);

(c) a person authorised to exercise any function of DFP or NIHE relating to
rates;

(d) a person providing services to DFP or NIHE relating to rates.

(3) 40Information supplied under this section may be used for another prescribed
purpose relating to rates.

(4) Information supplied under this section may be supplied to another qualifying
person for a prescribed purpose relating to rates (whether or not that is a
purpose for which it was supplied).

(5) A person to whom subsection (6) applies is guilty of an offence if the person
discloses without lawful authority any information—

(a) which comes to the person by virtue of this section, and

(b) which relates to a particular person.

(6) 5This subsection applies to—

(a) a qualifying person other than DFP;

(b) a person who is or has been a director, member of the committee of
management, manager, secretary or other similar officer of a qualifying
person;

(c) 10a person who is or has been an employee of a qualifying person.

(7) A person guilty of an offence under this section is liable—

(a) on conviction on indictment, to imprisonment for a term not exceeding
2 years or a fine, or both;

(b) on summary conviction, to imprisonment for a term not exceeding 6
15months or a fine not exceeding the statutory maximum, or both.

(8) It is not an offence under this section—

(a) to disclose information in the form of a summary or collection of
information so framed as not to enable information relating to any
particular person to be identified from it;

(b) 20to disclose information which has previously been disclosed to the
public with lawful authority.

(9) It is a defence for a person (“D”) charged with an offence under this section to
prove that at the time of the alleged offence—

(a) D believed that D was making the disclosure in question with lawful
25authority and had no reasonable cause to believe otherwise, or

(b) D believed that the information in question had previously been
disclosed to the public with lawful authority and had no reasonable
cause to believe otherwise.

(10) For the purposes of this section, “lawful authority” has the meaning given by
30section 117 of the Social Security Administration (Northern Ireland) Act 1992.

(11) In this section—

• “Revenue and Customs official”, “the Revenue and Customs” and
  “function of the Revenue and Customs” have the same meaning as in
  section 18 of the Commissioners for Revenue and Customs Act 2005;

• 35“rates” has the same meaning as in the Rates (Northern Ireland) Order
  1977 (S.I. 1977/2157 (N.I. 28)S.I. 1977/2157 (N.I. 28));

• “prescribed” means prescribed by regulations made by DFP.

(12) Regulations under this section must not be made except with the consent of the
Commissioners for Her Majesty’s Revenue and Customs.

(13) 40The power to make regulations under this section is exercisable by statutory
rule for the purposes of the Statutory Rules (Northern Ireland) Order 1979 (S.I.
1979/1573 (N.I. 12)).

(14) Regulations under this section are to be subject to negative resolution (within
the meaning of section 41(6) of the Interpretation Act (Northern Ireland) 1954).