PART 4The Scottish Beef Scheme

Scheme penalties

11.—(1) Subject to regulation 12, where in respect of an application for a Scheme payment, a difference is found between the number of animals claimed as eligible by the applicant and the number of eligible animals, the total amount of the Scheme payment to which the applicant is entitled in respect of the Scheme year concerned must be reduced in accordance with this regulation.

(2) Where 3 or fewer animals are not eligible, the total amount of the Scheme payment is reduced by the percentage (in this regulation “the relevant percentage”) calculated in accordance with the following formula—

Where—

RP % is the relevant percentage reduction;
I is the number of ineligible animals; and
E is the number of eligible animals.

(3) Where more than 3 animals are not eligible, the total amount of the Scheme payment is reduced by—

(a)the relevant percentage, if the relevant percentage is not more than 10%;

(b)twice the relevant percentage, if the relevant percentage is more than 10% but not more than 20%; or

(4) Where the relevant percentage is more than 50%, an amount equal to the amount by which a Scheme payment is reduced in application of paragraph (3)(c) must also be applied to reduce any other Scheme payment to which the applicant would otherwise be entitled; provided that amount is offset against any such payment made within the following three Scheme years.

(5) Where an applicant knowingly makes a statement or supplies to the Scottish Ministers any information in respect of an application which is false or misleading—

(a)a Scheme payment to which the applicant would otherwise be entitled must be reduced by 100%; and

(b)an amount equal to the amount by which a Scheme payment is reduced in application of sub-paragraph (a) must also be applied to reduce any other Scheme payment to which the applicant would otherwise be entitled; provided that amount is offset against any such payment made within the following three Scheme years.