457Premium avoidance schemes

457 Premium avoidance schemes (1) The Authority may determine that the premium payable by an employer in respect of a period is the amount that would have been calculated, or might reasonably be expected to have been calculated, as the premium payable by the employer if a premium avoidance scheme had not been entered into or carried out. (2) If the Authority makes a determination in relation to an employer under subsection (1), it must give the employer— (a) a notice that the premium payable by the employer is the amount specified in the determination; and (b) a notice of penalty stating that the penalty referred to in subsection (3) is payable. (3) If an employer obtained or, but for subsection (1), would have obtained, a premium benefit in connection with a premium avoidance scheme, the employer is liable to pay a default penalty equal to twice the difference between the premium determined under subsection (1) and the premium paid or payable by the employer but for that determination. (4) A default penalty under subsection (3) is due and payable within 28 days after the date of the notice given under subsection (2). (5) The Authority may remit the whole or any part of a default penalty imposed under subsection (3). (6) In this section— ***premium avoidance scheme*** means a scheme in respect of which it could reasonably be concluded that a person entering into, or carrying out, the scheme or any part of the scheme, does so for the purpose of enabling an employer to obtain a premium benefit in connection with the scheme, whether or not the person entering into or carrying out the scheme, or any part of the scheme, is an employer; ***premium benefit***, under a premium avoidance scheme, means a premium the amount of which is less than the amount that would, or might reasonably be expected to, have been calculated under a premiums order as the premium payable if the premium avoidance scheme had not been entered into or carried out.