PART 5PENALTIES
CHAPTER 2PENALTIES FOR FAILURE TO MAKE RETURNS OR PAY TAX OR AMOUNTS PAYABLE IN RESPECT OF TAX CREDITS
Penalties under Chapter 2: general
126Reasonable excuse for failure to make tax return or pay tax F1or amount payable in respect of tax credit
(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 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 devolved tax, the person is not liable to a penalty under F2sections 122 to 122A in relation to the failure.
F3(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) F4, (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.