Closing the Examination: Who will meet the settlement? - A couple where the penalty relates to a failure to notify a change of circumstances
The concept of the innocent partner does not apply to the penalties for failing to notify a change of circumstances. The only way customers can avoid such penalties is if they have a reasonable excuse (cross-reference Penalties Chapter 10 - CCM10170). If there is a reasonable excuse then you will not be seeking a penalty and your examination can be settled as described in CCM8110 - Closing the Examination, unless the examination also established an incorrect statement or declaration.