PART 5PENALTIES

CHAPTER 2PENALTIES FOR FAILURE TO MAKE RETURNS OR PAY TAX OR AMOUNTS PAYABLE IN RESPECT OF TAX CREDITS

Penalty for failure to make devolved tax return

121Reduction in penalty for failure to make tax return: disclosure

(1)

WRA may reduce a penalty under section 118, F1118A, 119 F2, 120, 120B, 120E or 120F if the person discloses information which has been withheld as a result of a failure to make a tax return (“relevant information”).

(2)

A person discloses relevant information by—

(a)

telling WRA about it,

(b)

giving WRA reasonable help in quantifying any F3WRA-collected tax unpaid by reason of the information having been withheld, and

(c)

allowing WRA access to records for the purpose of checking how much F3WRA-collected tax is so unpaid.

(3)

In reducing a penalty under this section, WRA may take account of—

(a)

whether the disclosure was prompted or unprompted, and

(b)

the quality of the disclosure.

(4)

Disclosure of relevant information—

(a)

is “unprompted” if made at a time when the person making the disclosure has no reason to believe that WRA has discovered or is about to discover the relevant information, and

(b)

otherwise, is “prompted”.

(5)

“Quality”, in relation to disclosure, includes timing, nature and extent.