Regulation 15 Financial penaltiesI1

The administrator may impose a financial penalty on an operator if the operator, in relation to one or more of its facilities—

The amount of the financial penalty that may be imposed F3in relation to a facility under paragraph (1) is—

This paragraph applies in respect of a penalty that may be imposed under paragraph (1)(a), (c) or (d) on—

F7If paragraph (1A) applies, F8the maximum amount of the financial penalty that may be imposed under paragraph (1)(a), (c) or (d) is the greater of—

where X represents the amount of levy that would have been payable on supplies of taxable commodities to the F10facility during the base year F11for the relevant target period if the supplies were not reduced rate supplies, and where Y represents the amount of levy that would have been payable on supplies of taxable commodities to the facility during the base year for the relevant target period if the supplies were reduced rate supplies.

This paragraph applies in respect of a penalty which may be imposed under paragraph (1)(a), (c) or (d) on the operator of a F13facility which is a greenfield facility, if the penalty notice is served at any time during the 12 month period starting on the date of an underlying agreement.

If paragraph (2A) applies, F14the maximum amount of the financial penalty that may be imposed under paragraph (1)(a), (c) or (d) is the greater of—

In paragraph (2B)—

F18the maximum amount of the financial penalty that may be imposed under paragraph (1)(b) is the greater of—

A financial penalty under this regulation is recoverable by the administrator as a civil debt if unpaid after the date for payment set out in the notice of financial penalty.

In this regulation—

• “base year”, for a relevant target period, means—

  1. (a)

     for a F24facility which is a greenfield facility, the 12 month period starting on the date of an underlying agreement which provides for that target period;

  2. (b)

     for a F25facility which is not a greenfield facility, a 12 month period which—

     1. (i)

        ends before the date of an underlying agreement which provides for that target period or before the date an underlying agreement is first varied to provide for that target period; and

     2. (ii)

        is agreed between an operator and the administrator before they enter into the underlying agreement or before the underlying agreement is first varied to provide for that target period;

• “greenfield facility” means a facility which started to carry out the process by virtue of which it is a facility within the meaning of paragraph 50 of Schedule 6 during the 12 month period ending on the date the operator applies for the facility to be covered by an agreement;

• F26“relevant target period” means—

  1. (a)

     for a penalty imposed for failure to provide information in accordance with regulation 14(2)(a), (b), (c) or (d)(i), the target period in respect of which the request for information was made;

  2. (b)

     for a penalty imposed for providing inaccurate information under regulation 14(2)(b)(iii) or (d)(i), the target period in respect of which the request for information was made;

  3. (c)

     for a penalty imposed for failure to provide information in accordance with, or for providing inaccurate information under, regulation 14(2)(d)(ii), the target period during which the request was made, or if the request was made after the end of all target periods to which the underlying agreement applies, the last target period to which the agreement applies;

  4. (d)

     for a penalty imposed for failure to make any other notification required under the terms of an underlying agreement, the target period during which the notification was required to be made, or if the notification was required to be made after the end of all target periods to which the underlying agreement applies, the last target period to which the agreement applies.