Penalties

46Penalties for dishonestly obtaining top-up payments, etc

(1)

A person (“P”) is liable to a penalty under this section if—

(a)

for the purpose of obtaining a relevant payment for P or another (see subsection (2)), P does, or omits to do, any act, and

(b)

P's conduct involves dishonesty.

(2)

The following payments are “relevant payments”—

(a)

a top-up payment;

(b)

a payment from a childcare account.

(3)

The amount of the penalty may not exceed—

(a)

£3,000, or

(b)

the sum of any relevant amounts obtained as mentioned in subsection (1),

whichever is greater.

(4)

In subsection (3) “relevant amount” means—

(a)

in the case of a top-up payment, the amount of the payment, and

(b)

in the case of a payment from a childcare account, an amount equal to the top-up element of the payment.

(For provision about calculating the top-up element of a payment, see section 21.)

(5)

Regulations may amend subsection (3)(a) so as to substitute a different amount for the amount for the time being specified there.

(6)

Where—

(a)

a body corporate is liable to a penalty under this section, and

(b)

the liability is attributable (wholly or partly) to the dishonesty of a person falling within subsection (7),

that person (as well as the body corporate) is liable to a penalty under this section.

(7)

The persons are—

(a)

a director, manager, secretary or similar officer of the body corporate;

(b)

any person who was purporting to act in such a capacity.

(8)

Where the affairs of a body corporate are managed by its members, subsection (6) applies in relation to the acts and defaults of a member, in connection with that management, as if the member were a director of the body corporate.

(9)

Where—

(a)

a Scottish firm is liable to a penalty under this section, and

(b)

the liability is attributable (wholly or partly) to the dishonesty of a partner of the firm or a person purporting to act as such a partner,

that person (as well as the firm) is liable to a penalty under this section.