CCM10235 - Penalties and interest: S14(2), S15(2), S16(3) notices

You will not normally need to consider penalties where a person fails to comply with a notice under S14(2). This notice is issued pre-award and if you do not receive the information you will normally decide not to make an award or disallow the item that has not been verified. If the customer disputes this decision they can appeal and if this is to succeed they will need to provide the outstanding information.

You may need to consider penalties for a S15(2) notice. S15 refers to an unprocessed notification of a change of circumstances. Most notifications of such changes are put straight into award so that any challenge is made under S16. Where information or evidence is required before the award is amended to reflect the change you will have the option of not amending the award. If the customer disputes this decision they can appeal and if this is to succeed they will need to provide the outstanding information.

In a post-award examination S16(3) allows us to call for information or evidence where we believe the award is incorrect.

In most cases where you have not received the additional information or evidence you will still be able to make a S16(1) decision - see CCM10270. This decision carries an appeal right and if an appeal is made the customer will need to provide the outstanding information if they want the award to be revised. Once you have made a S16 decision to conclude your examination you will still normally be able to open a S19 enquiry at the end of the year if your decision turns out to be incorrect.

If you believe a penalty is appropriate see CCM10280.