Tax Collection and Management (Wales) Act 2016

Penalties for inaccuracies in documents E+W

129 Penalty for inaccuracy in document given to WRA E+W

(1) A person is liable to a penalty where—

(a) the person gives WRA a document, and

(b) conditions 1 and 2 are satisfied.

(2) Condition 1 is that the document contains an inaccuracy which amounts to, or leads to—

(a) an understatement of a liability to a devolved tax,

(b) a false or inflated statement of a loss relating to a devolved tax, F1 ...

(c) a false or inflated claim to repayment of devolved tax [F2 , or

(d) a false or inflated claim for a tax credit.]

(3) Condition 2 is that the inaccuracy was deliberate or careless on the person's part.

(4) An inaccuracy is careless on a person's part if it is due to the person's failure to take reasonable care.

(5) An inaccuracy which was neither deliberate nor careless on a person's part when the document was given is to be treated as careless if the person—

(a) discovered the inaccuracy at some later time, and

(b) did not take reasonable steps to inform WRA.

(6) Where a document contains more than one inaccuracy in respect of which conditions 1 and 2 are satisfied, the person is liable to a penalty for each such inaccuracy.

Textual Amendments

F1 Word in s. 129(2) omitted (1.4.2018) by virtue of The Landfill Disposals Tax (Administration) (Wales) Regulations 2018 (S.I. 2018/101), reg. 1(2), Sch. para. 29(a)

F2 S. 129(2)(d) and word inserted (1.4.2018) by The Landfill Disposals Tax (Administration) (Wales) Regulations 2018 (S.I. 2018/101), reg. 1(2), Sch. para. 29(b)

Commencement Information

I1 S. 129 in force at 1.4.2018 by S.I. 2018/33, art. 3

130 Amount of penalty for inaccuracy in document given to WRA E+W

(1) The penalty for a deliberate inaccuracy is [F3 an amount not exceeding] 100% of the potential lost revenue.

(2) The penalty for a careless inaccuracy is [F4 an amount not exceeding] 30% of the potential lost revenue.

Textual Amendments

F3 Words in s. 130(1) inserted (1.4.2018) by Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (anaw 1), s. 81(2)(3), Sch. 23 para. 48(a); S.I. 2018/34, art. 3

F4 Words in s. 130(2) inserted (1.4.2018) by Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (anaw 1), s. 81(2)(3), Sch. 23 para. 48(b); S.I. 2018/34, art. 3

Commencement Information

I2 S. 130 in force at 1.4.2018 by S.I. 2018/33, art. 3

131 Suspension of penalty for careless inaccuracy E+W

(1) WRA may suspend all or part of a penalty for a careless inaccuracy under section 129 by issuing a notice to the person liable to the penalty.

(2) The notice must specify—

(a) what part of the penalty is to be suspended,

(b) a period of suspension not exceeding 2 years, and

(c) conditions of suspension to be complied with by the person.

(3) WRA may suspend all or part of a penalty only if compliance with a condition of suspension would help the person to avoid becoming liable to further penalties under section 129 for careless inaccuracy.

(4) A condition of suspension may specify—

(a) action to be taken, and

(b) a period within which it must be taken.

(5) At the end of the period of suspension—

(a) if the person satisfies WRA that the conditions of suspension have been complied with, the suspended penalty or part is cancelled, and

(b) otherwise, the suspended penalty or part becomes payable.

(6) If, during the period of suspension of all or part of a penalty payable under section 129, the person becomes liable to another penalty under that section, the suspended penalty or part becomes payable.

Commencement Information

I3 S. 131 in force at 1.4.2018 by S.I. 2018/33, art. 3

132 Penalty for deliberate inaccuracy in document given to WRA by another person E+W

(1) A person (referred to in this section as “person A”) is liable to a penalty where—

(a) another person gives WRA a document,

(b) the document contains a relevant inaccuracy, and

(c) the inaccuracy was attributable—

(i) to person A deliberately supplying false information to the other person (whether directly or indirectly), or

(ii) to person A deliberately withholding information from the other person,

with the intention of the document containing the inaccuracy.

(2) A “relevant inaccuracy” is an inaccuracy which amounts to, or leads to—

(a) an understatement of a liability to a devolved tax,

(b) a false or inflated statement of a loss relating to a devolved tax, F5 ...

(c) a false or inflated claim to repayment of devolved tax [F6 , or

(d) a false or inflated claim for a tax credit.]

(3) Person A is liable to a penalty under this section in respect of an inaccuracy whether or not the other person is liable to a penalty under section 129 in respect of the same inaccuracy.

(4) The penalty payable under this section is [F7 an amount not exceeding] 100% of the potential lost revenue.

Textual Amendments

F5 Word in s. 132(2) omitted (1.4.2018) by virtue of The Landfill Disposals Tax (Administration) (Wales) Regulations 2018 (S.I. 2018/101), reg. 1(2), Sch. para. 30(a)

F6 S. 132(2)(d) and word inserted (1.4.2018) by The Landfill Disposals Tax (Administration) (Wales) Regulations 2018 (S.I. 2018/101), reg. 1(2), Sch. para. 30(b)

F7 Words in s. 132(4) inserted (1.4.2018) by Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (anaw 1), s. 81(2)(3), Sch. 23 para. 49; S.I. 2018/34, art. 3

Commencement Information

I4 S. 132 in force at 1.4.2018 by S.I. 2018/33, art. 3