Tax Collection and Management (Wales) Act 2016

126 Reasonable excuse for failure to make tax return or pay tax [F1 or amount payable in respect of tax credit] E+W

(1) If a person satisfies WRA or (on appeal) the tribunal that there is a reasonable excuse for a failure to make a tax return, the person is not liable to a penalty under sections 118 to 120 [F2 , 120B, 120E or 120F, or (as the case may be) to a penalty point under section 120A,] in relation to the failure.

(2) If a person satisfies WRA or (on appeal) the tribunal that there is a reasonable excuse for a failure to pay a [F3 WRA-collected] tax, the person is not liable to a penalty under [F4 sections 122 to [F5 122B]] in relation to the failure.

[F6 (2A) If a person satisfies WRA or (on appeal) the tribunal that there is a reasonable excuse for a failure to pay an amount payable in respect of a tax credit, the person is not liable to a penalty under section 123A in relation to the failure.]

(3) For the purposes of subsections (1) [F7 , (2) and (2A)]—

(a) an insufficiency of funds is not a reasonable excuse unless attributable to events outside the person's control;

(b) where a person relies on another person to do anything, that is not a reasonable excuse unless the first person took reasonable care to avoid the failure;

(c) where a person had a reasonable excuse for the failure but the excuse has ceased, the person is to be treated as having continued to have the excuse if the failure is remedied without unreasonable delay after the excuse ceased.

Textual Amendments

F1 Words in s. 126 heading inserted (1.4.2018) by The Landfill Disposals Tax (Administration) (Wales) Regulations 2018 (S.I. 2018/101), reg. 1(2), Sch. para. 26(4)

F2 Words in s. 126(1) inserted (19.9.2025) by Visitor Accommodation (Register and Levy) Etc. (Wales) Act 2025 (asc 5), s. 67(1), Sch. 2 para. 46(a)

F3 Word in Act substituted (19.9.2025) by Visitor Accommodation (Register and Levy) Etc. (Wales) Act 2025 (asc 5), s. 67(1), Sch. 2 para. 21

F4 Words in s. 126(2) substituted (1.4.2018) by Landfill Disposals Tax (Wales) Act 2017 (anaw 3), s. 97(2), Sch. 4 para. 13; S.I. 2018/35, art. 3

F5 Word in s. 126(2) substituted (19.9.2025) by Visitor Accommodation (Register and Levy) Etc. (Wales) Act 2025 (asc 5), s. 67(1), Sch. 2 para. 46(b)

F6 S. 126(2A) inserted (1.4.2018) by The Landfill Disposals Tax (Administration) (Wales) Regulations 2018 (S.I. 2018/101), reg. 1(2), Sch. para. 26(2)

F7 Words in s. 126(3) substituted (1.4.2018) by The Landfill Disposals Tax (Administration) (Wales) Regulations 2018 (S.I. 2018/101), reg. 1(2), Sch. para. 26(3)

Modifications etc. (not altering text)

C1 Ss. 125-128 applied (1.4.2018) by The Tax Collection and Management (Reimbursement Arrangements) (Wales) Regulations 2018 (S.I. 2018/88), regs. 1(2), 8(3)

Commencement Information

I1 S. 126 in force at 1.4.2018 by S.I. 2018/33, art. 3