SEIS: company and investor procedures: company procedures: action on receipt of SEIS3
Where the company has issued a certificate on form SEIS3 and the shareholder has obtained tax relief, the office dealing with the shareholder sends a copy of the SEIS3 claim form to the officer who authorised the issue of the certificate. In each case the officer should check that the name of the subscriber and the amount of the investment tallies with the information given on form SEIS1. The issue by a company of a false or unauthorised certificate attracts a penalty under ITA07/S257EF the maximum penalty is £3,000 for each such certificate.
The officer will consider whether the individual was entitled to claim the relief obtained. This involves consideration of all the circumstances surrounding the issue of the shares in question. For example, there might be some indication that the subscription may not have been for bona fide commercial reasons - perhaps the fact that a very large premium was paid, or the fact that the company appears to be hopelessly insolvent - in which case the subscriptions may not have been made for bona fide commercial purposes (see VCM32060). Exceptionally there might be evidence that the subscriber had received a loan (see VCM32050) or had an option to sell the shares (see VCM36030). In all cases the officer will consider whether the subscriber in question is a qualifying individual (see VCM32010).