Commentary on Sections Part 1 – Non-Domestic Rating Section 12 – Information to be provided to valuation officer
34.This section applies to Wales, with amendments, the information provision duties and associated compliance regime provided by paragraphs 4I to 4M, 5ZC to 5ZF and 5BD to 5BF of Schedule 9 to the 1988 Act. The provisions set out duties on ratepayers (or persons who would be ratepayers if their hereditaments were shown in a rating list) to provide notifiable information to the Valuation Office Agency (VOA), a system of penalties for failure to comply, and procedures for reviewing and appealing penalties.
35.Subsections (2), (3) and (5) amend paragraphs 4I and 4M(1) of Schedule 9 to the 1988 Act to remove words limiting the effect of the provisions to England.
36.Paragraphs 4I to 4M of Schedule 9 to the 1988 Act set out the duties to provide notifiable information to the VOA:
	Paragraph 4I provides that the duties apply to persons who are or would be (if the hereditament were shown in a rating list) a ratepayer for a hereditament. This includes those in receipt of 100% relief from the chargeable amount.
	Paragraph 4J provides for a duty for that person to provide notifiable information within a notifiable period. Information is notifiable if it relates to the identity of the (would be) ratepayer or the existence, extent or rateable value of the hereditament, but only if that person could reasonably be expected to know that it would assist the VOA in carrying out its functions. The notifiable period is within 60 days of the change in notifiable information, or such longer period as may be specified by the VOA in a notice. Subsection (4) amends paragraph 4J(4) to provide that, in relation to a hereditament situated in Wales, the notifiable period may also be such longer period as may be agreed with the VOA. This will allow for a person to request that the VOA grants an extension to the notifiable period.
	Paragraph 4K provides that the person must make an annual confirmation, within 60 days beginning on 30 April each year, that they have either provided notifiable information or that they were not required to provide such information.
	Paragraph 4L provides for the information to be submitted using an online facility provided by the VOA or in another agreed manner.
	Paragraph 4M restates existing powers in paragraph 5 of Schedule 9 to the 1988 Act, which allow the VOA to also request information which they believe will assist them in carrying out their functions. The VOA may still need to request information using this power, including for specialist properties and very specific types of information.
37.Subsections (7) and (8) amend paragraphs 5A(1) and 5C(2), respectively, of Schedule 9 to the 1988 Act, to extend the deadline for ratepayers to respond to an information notice issued by billing authorities (from 56 to 60 days) and appeal a penalty notice for failure to comply (from 28 to 30 days). These changes maintain consistent timescales for the provision of information to the VOA and billing authorities.
38.Paragraphs 5ZC to 5ZF of Schedule 9 to the 1988 Act set out a system of penalties for failures to comply with the duties to provide notifiable information:
	Paragraph 5ZC provides for:i.A civil penalty where a person fails to comply with the duties. The penalty is determined under paragraph 5ZD(1).ii.A criminal offence where a person knowingly or recklessly makes a false statement while purporting to comply with the duties. A person is liable on summary conviction to imprisonment for a term not exceeding 3 months or a fine not exceeding level 3 on the standard scale or to both. For criminal liability to be imposed, the usual test applies; it must be beyond reasonable doubt the offence has been committed. Alternatively, the person may be held liable for a civil penalty for making a false statement of the same nature (although it must still be beyond reasonable doubt that the offence was committed). The civil penalty is determined under paragraph 5ZD(2).iii.The arrangements for serving and the contents of penalty notices, where the person is liable for a civil penalty. A penalty must be paid within 30 days of the date of the penalty notice (unless this period is extended by the time taken to complete any review or appeal). If a person is served with a civil penalty notice in respect of knowingly or recklessly making a false statement, no criminal proceedings for the same offence may be instituted before the deadline for payment of the penalty. If that liability is discharged, then no criminal proceedings or conviction may follow and no further penalty notice may be served, in relation to knowingly or recklessly making the false statement. If a person discharges liability arising from a penalty notice for failure to comply with the notification duties and is subsequently convicted of an offence or served with a further penalty notice in respect of a false statement, then the sentence or amount of the penalty must reflect the amount of the penalty already discharged.
	Paragraph 5ZD provides for the level of a civil penalty:i.Where the person has failed to comply with a notification requirement, the maximum penalty is the greater of 2% of the relevant rateable value and £900.ii.Where the person has knowingly or recklessly made a false statement in purported compliance with a notification requirement, the maximum penalty is the sum of 3% of the relevant rateable value and £500.iii.Where the person is liable for failing to comply with a notification requirement, they would be liable to a further penalty of £60 per day if they fail to comply with the requirement within 30 days of being served with an associated penalty notice. The total liability for further daily penalties may not exceed £1,800.
	Paragraph 5ZE provides for the determination of rateable values, for the purposes of calculating penalties where a matter affecting the rateable value has changed between the day when the notifiable information should have been provided and the day of the penalty notice. These provisions ensure that the penalty is not increased or reduced due to changes to the hereditament after the liability to the penalty first arose.
	Paragraph 5ZF provides for the valuation officer to mitigate or remit any of the above penalties. This will allow the VOA to operate the duties and penalties fairly and with due regard to individual circumstances.
39.Paragraphs 5BD to 5BF of Schedule 9 to the 1988 Act set out the procedures for reviewing and appealing penalties for failure to comply with the duties to provide notifiable information:
	Paragraph 5BD provides a person with 30 days to request a review of a penalty notice. The review is done by a reviewing officer of the VOA, different from the officer who imposed the penalty. The nature and extent of the review are such as appear appropriate to the reviewing officer. The review must be completed within 45 days, otherwise the penalty is treated as having been confirmed.
	Paragraph 5BE provides for a right of appeal to the valuation tribunal against the conclusions of the review, within 30 days of the notification (or deemed notification) of the review conclusions.
	Paragraph 5BF extends the period for paying a penalty and provides that the incidence of a review or appeal does not prevent a further penalty being applied, where the person continues to fail to comply with the notification requirement. It also ensures that a review or appeal would consider any daily penalty imposed under paragraph 5ZD(3) in addition to the penalty imposed under paragraph 5ZC(1).
40.Subsection (6) inserts new sub-paragraph (4A) into paragraph 5ZC of the 1988 Act, to provide that a penalty notice served in relation to a hereditament situated in Wales must include an explanation of the effect of paragraph 5BD(9). As a result, the notice will clarify that, should the person request a review, the penalty is to be treated as having been confirmed, if the reviewing officer has not given notice of their decision within 45 days. This is intended to ensure clarity for the person, as to when the 30 day period during which they may appeal the penalty notice will start.