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12.—(1) Subject to paragraph (2), the penalties in regulation 11 do not apply—
(a)where the applicant submitted factually accurate information or can otherwise show that he or she is not at fault;
(b)to those parts of an application for a Scheme payment in relation to which—
(i)the applicant has informed the Scottish Ministers in writing that the application is incorrect or has become incorrect since it was submitted; or
(ii)the keeper has notified the Scottish Ministers about an animal’s movements in accordance with regulation 6 of, and paragraph 2 of Schedule 2 (notification) to, the Cattle Identification Regulations; or
(iii)the applicant or the keeper has supplied information in writing to the Scottish Ministers about the animals or the IACS holding or keeper’s holding which are the subject of that application which would have the effect described in head (i).
(2) Paragraph (1)(b) does not apply if the Scottish Ministers have already informed the applicant that—
(a)they intend to inspect the applicant’s animals or IACS holding or keeper’s holding; or
(b)an animal or the application is not eligible.
(3) Where an applicant has informed the Scottish Ministers or supplied them with information under paragraph (1)(b), the application is deemed to be adjusted so as to incorporate that information.
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