Tax Collection and Management (Wales) Act 2016

Legislation Crest

E+W

Tax Collection and Management (Wales) Act 2016

2016 anaw 6

An Act of the National Assembly for Wales to establish the Welsh Revenue Authority; to make provision about the collection and management of devolved taxes; and for connected purposes.

[25 April 2016]

Having been passed by the National Assembly for Wales and having received the assent of Her Majesty, it is enacted as follows:

PART 1 E+WOVERVIEW

1Overview of ActE+W

This Act is arranged as follows—

(a)Part 2 establishes the Welsh Revenue Authority and makes provision about its organisation and main functions;

(b)Part 3 makes provision about the assessment of devolved taxes;

(c)Part 4 makes provision about the Welsh Revenue Authority's investigatory powers, including provision about notices requiring information and the inspection of premises;

(d)Part 5 makes provision for and in connection with the imposition of penalties in relation to devolved taxes;

(e)Part 6 makes provision for interest to be payable on late payments to the Welsh Revenue Authority and on repayments by the Welsh Revenue Authority;

(f)Part 7 makes provision about payments to the Welsh Revenue Authority and the recovery of unpaid amounts;

(g)Part 8 makes provision for and in connection with reviews of and appeals against decisions of the Welsh Revenue Authority;

(h)Part 9 confers powers to make subordinate legislation about the investigation of criminal offences relating to devolved taxes;

(i)Part 10 contains provision that applies generally for the purposes of this Act.

PART 2 E+WTHE WELSH REVENUE AUTHORITY

Establishment and status of the Welsh Revenue AuthorityE+W

2The Welsh Revenue AuthorityE+W

MembershipE+W

3MembershipE+W

4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5Terms of non-executive membershipE+W

6Appointment of elected executive memberE+W

7Removal of members etc.E+W

Committees and staffE+W

8Committees and sub-committeesE+W

9Chief executive and other staffE+W

Procedure and validityE+W

10ProcedureE+W

11Validity of proceedings and actsE+W

FunctionsE+W

12Main functionsE+W

13Internal authorisation to carry out functionsE+W

14Delegation of functionsE+W

15General directionsE+W

InformationE+W

16Use of information by WRA and delegatesE+W

17Confidentiality of protected taxpayer informationE+W

18. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

19Declaration of confidentialityE+W

20Offence of wrongful disclosure of protected taxpayer informationE+W

Court proceedings and evidenceE+W

21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

22EvidenceE+W

MoneyE+W

23FundingE+W

24RewardsE+W

25Payments of receipts into Welsh Consolidated FundE+W

Charter of standards and valuesE+W

26Charter of standards and valuesE+W

Corporate plans, annual reports, accounts etc.E+W

27Corporate planE+W

28Annual reportE+W

29AccountsE+W

30Tax StatementE+W

31AuditE+W

32Examination into use of resourcesE+W

33Accounting officerE+W

Consequential amendmentsE+W

34Welsh public recordsE+W

35Public Services OmbudsmanE+W

36Auditor General for WalesE+W

PART 3 E+WTAX RETURNS, ENQUIRIES AND ASSESSMENTS

CHAPTER 1E+WOVERVIEW

37Overview of PartE+W

This Part is about the assessment of devolved taxes and includes provision about—

(a)keeping records;

(b)tax returns;

(c)enquiries by WRA into tax returns;

(d)determinations by WRA of devolved tax due where no tax return is made;

(e)assessments by WRA of devolved tax due where there is no enquiry;

(f)claims for relief from double assessment and for repayment of devolved tax;

(g)the making of claims.

CHAPTER 2E+WTAXPAYER DUTIES TO KEEP AND PRESERVE RECORDS

38Duty to keep and preserve recordsE+W

39Preservation of information etc.E+W

CHAPTER 3E+WTAX RETURNS

Filing dateE+W

40Meaning of “filing date”E+W

In this Act, the “filing date”, in relation to a tax return, is the day by which the tax return is required to be made by any enactment.

Amendment and correction of tax returnsE+W

41Amendment of tax return by taxpayerE+W

(1)A person who has made a tax return may amend it by giving notice to WRA.

(2)An amendment under this section must be made before the end of the period of 12 months beginning with the relevant date (referred to in section 42 as the “amendment period”).

(3)The relevant date is—

(a)the filing date, or

(b)such other date as the Welsh Ministers may by regulations prescribe.

(4)This section is subject to sections 45(3) and 50.

42Correction of tax return by WRAE+W

(1)WRA may correct any obvious error or omission in a tax return.

(2)A correction under this section—

(a)is made by issuing a notice to the person who made the tax return, and

(b)is regarded as effecting an amendment of the tax return.

(3)The reference in subsection (1) to an error includes, for instance, an arithmetical mistake or an error of principle.

(4)A correction under this section must be made before the end of the period of 9 months beginning with the day on which the tax return was made.

(5)A correction under this section has no effect if the person who made the tax return rejects it by—

(a)during the amendment period, amending the tax return so as to reject the correction, or

(b)after that period, giving a notice rejecting the correction.

(6)A notice under subsection (5)(b) must be given to WRA before the end of the period of 3 months beginning with the day on which the notice of correction is issued.

CHAPTER 4E+WWRA ENQUIRIES

Notice and scope of enquiryE+W

43Notice of enquiryE+W

(1)WRA may enquire into a tax return if it issues notice of the intention to do so (a “notice of enquiry”) to the person who made the tax return before the end of the [F4enquiry period (but see subsection (1B)).]

[F5(1A)The enquiry period for a tax return is the period of 12 months beginning with the relevant date.

(1B)But WRA may enquire into a tax return after the expiry of the enquiry period if—

(a)the tax return is made in respect of a land transaction,

(b)after the tax return is made, a further return is made in respect of the same land transaction,

(c)WRA has issued a notice of enquiry into the further return, and

(d)WRA believes it is necessary to enquire into the tax return mentioned in paragraph (a).]

(2)[F6For the purposes of subsection (1A),] the relevant date is—

(a)if the tax return was made after the filing date, the day on which the tax return was made, or

(b)otherwise, the filing date,

but if the tax return is amended under section 41, the relevant date is the day on which the amendment was made.

(3)A tax return that has been the subject of one notice under this section may not be the subject of another, except a notice issued

[F7(a)as a result of an amendment of the tax return under section 41, or

(b)by virtue of subsection (1B)].

[F8(4)In subsection (1B), “"further return”” means a further return made under LTTA.]

44Scope of enquiryE+W

(1)An enquiry into a tax return extends to anything contained in the tax return, or required to be contained in the tax return, that relates—

(a)to the question whether the person who made the tax return is chargeable to the devolved tax to which the tax return relates, or

(b)to the amount of devolved tax chargeable on the person who made the tax return.

(2)But if a notice of enquiry is issued as a result of the amendment of a tax return under section 41 after an enquiry into the tax return has been completed, the enquiry is limited to—

(a)matters to which the amendment relates, and

(b)matters affected by the amendment.

Amendment of tax return during enquiryE+W

45Amendment of tax return during enquiry to prevent loss of taxE+W

(1)If, during the period when an enquiry into a tax return is in progress, WRA forms the opinion—

(a)that the amount stated in the tax return as the amount of devolved tax [F9chargeable] is insufficient, and

(b)that, unless the return is immediately amended, there is likely to be a loss of devolved tax,

WRA may by notice issued to the person who made the return amend it to make good the insufficiency.

[F10(1A)If, during the period when an enquiry into a tax return is in progress, WRA forms the opinion—

(a)that the amount of tax credit claimed in the tax return is excessive, and

(b)that, unless the return is immediately amended, there is likely to be a loss of devolved tax,

WRA may by notice issued to the person who made the return amend it so that the amount claimed is no longer excessive.]

(2)If the enquiry is one that is limited by section 44(2) to matters arising from an amendment of the tax return,

[F11(a)]subsection (1) applies only so far as the insufficiency is attributable to the amendment [F12, and

(b)subsection (1A) applies only so far as the excessive amount is attributable to the amendment.]

(3)Where a notice is issued under subsection (1) [F13or (1A)], the person who made the tax return may no longer amend it under section 41.

(4)The person who made the tax return must pay any amount, or additional amount, of devolved tax payable as a result of the amendment before the end of the period of 30 days beginning with the day on which notice of the amendment is issued.

(5)For the purposes of this section and [F14sections 45A and 46] the period during which an enquiry into a tax return is in progress is the whole of the period—

(a)beginning with the day on which notice of enquiry into the tax return is issued, and

(b)ending with the day on which the enquiry is completed (see section 50).

Referral during enquiryE+W

46Referral of questions to tribunal during enquiryE+W

(1)At any time when an enquiry is in progress the person who made the tax return and WRA may jointly refer any question arising in connection with the subject-matter of the tax return to the tribunal.

(2)The tribunal must determine any question referred to it.

(3)More than one referral may be made under this section in relation to an enquiry.

47Withdrawal of referralE+W

WRA or the person who made the tax return may withdraw a referral made under section 46.

48Effect of referral on enquiryE+W

(1)While proceedings on a referral under section 46 are in progress in relation to an enquiry⁠—

(a)no closure notice may be issued in relation to the enquiry (see section 50), and

(b)no application may be made for a direction to issue a closure notice (see section 51).

(2)Proceedings on a referral are in progress where—

(a)a referral has been made and has not been withdrawn, and

(b)the question referred has not been finally determined.

49Effect of determinationE+W

(1)A determination under section 46 is binding on the parties to the referral in the same way, and to the same extent, as a decision on a preliminary issue in an appeal.

(2)WRA must take the determination into account—

(a)in reaching conclusions on the enquiry, and

(b)in the formulation of any amendments of the tax return that may be required to give effect to those conclusions.

(3)The question determined may not be reopened on an appeal, except to the extent that it could be reopened if it had been determined as a preliminary issue in an appeal.

Completion of enquiryE+W

50Completion of enquiryE+W

(1)An enquiry is completed when WRA issues a notice (a “closure notice”) to the person who made the tax return stating—

(a)that the enquiry is complete, and

(b)the conclusions reached in the enquiry.

(2)A closure notice must either—

(a)state that in WRA's opinion no amendment of the tax return is required, or

(b)make the amendments of the tax return required to give effect to WRA's conclusions.

(3)Where a closure notice is issued which makes amendments of a tax return, the person who made the tax return may no longer amend it under section 41.

(4)The person who made the tax return must pay an amount, or additional amount, of devolved tax chargeable as a result of an amendment made by a closure notice before the end of the period of 30 days beginning with the day on which the notice is issued.

51Direction to complete enquiryE+W

(1)The person who made the tax return may make an application to the tribunal for a direction that a closure notice is to be issued within a specified period.

(2)The tribunal must give a direction unless satisfied that WRA has reasonable grounds for not giving a closure notice within that period.

CHAPTER 5E+WWRA DETERMINATIONS

52Determination of tax chargeable if no tax return madeE+W

(1)This section applies where—

(a)WRA has reason to believe that a person is chargeable to a devolved tax,

(b)the person has not made a tax return in relation to the devolved tax chargeable, and

(c)the relevant filing date has passed.

(2)The relevant filing date” means the date by which WRA believes a tax return was required to be made.

(3)WRA may make a determination (a “WRA determination”) of the amount of devolved tax to which the person is, in WRA's opinion, chargeable.

(4)Notice of the determination must be issued to the person.

(5)The person must pay the devolved tax payable as a result of the WRA determination before the end of the period of 30 days beginning with the day on which notice of the determination is issued.

(6)No WRA determination may be made more than 4 years after the relevant date.

(7)The relevant date is—

(a)the relevant filing date, or

(b)such other date as the Welsh Ministers may by regulations prescribe.

53Determination superseded by tax returnE+W

(1)If, after a WRA determination has been made, the person whom WRA had reason to believe was chargeable to a devolved tax makes a tax return with respect to the tax, the return supersedes the determination.

(2)But subsection (1) does not apply to a tax return made—

(a)more than 4 years after the power to make a WRA determination first became exercisable, or

(b)more than 12 months after the day on which the notice of the determination was issued,

whichever is the later.

(3)Where—

(a)proceedings have been begun for the recovery of any devolved tax charged by a WRA determination, and

(b)before the proceedings are concluded the determination is superseded by a tax return,

the proceedings may be continued as if they were proceedings for the recovery of so much of the devolved tax charged by the tax return as is required to be paid and has not yet been paid.

CHAPTER 6E+WWRA ASSESSMENTS

Assessment of loss of tax or of excessive repaymentE+W

54Assessment where loss of taxE+W

If WRA comes to the view that—

(a)an amount of devolved tax that ought to have been assessed as devolved tax chargeable on a person has not been assessed,

(b)an assessment of the devolved tax chargeable on a person is or has become insufficient, or

(c)relief in respect of a devolved tax has been claimed or given that is or has become excessive,

WRA may make an assessment of the amount or further amount that ought in its opinion to be charged in order to make good the loss of devolved tax.

55Assessment to recover excessive repayment of taxE+W

(1)If an amount of a devolved tax has been, but ought not to have been, repaid to a person that amount may be assessed and recovered as if it were unpaid devolved tax.

(2)If the repayment was made with interest, the amount assessed and recovered may include the amount of interest that ought not to have been paid.

56References to “WRA assessment”E+W

In this Act, “WRA assessment” means an assessment under section 54 or 55.

Making WRA assessmentsE+W

57References to the “taxpayer”E+W

In sections 58 to 61, “taxpayer” means—

(a)in relation to a WRA assessment under section 54, the person chargeable to the devolved tax,

(b)in relation to a WRA assessment under section 55, the person mentioned there.

58Conditions for making WRA assessmentsE+W

(1)A WRA assessment—

(a)may be made only in the two cases specified in subsections (2) and (3), and

(b)may not be made in the circumstances specified in subsection (4).

(2)The first case is where the situation mentioned in section 54 or 55 was brought about carelessly or deliberately by—

(a)the taxpayer,

(b)a person acting on the taxpayer's behalf, or

(c)a person who was a partner in the same partnership as the taxpayer.

(3)The second case is—

(a)where WRA has ceased to be entitled to issue a notice of enquiry into a tax return, or has completed its enquiries into a tax return, and

(b)at the time when it ceased to be so entitled or completed those enquiries, it could not reasonably have been expected to be aware of the situation mentioned in section 54 or 55 on the basis of information made available to it before that time.

(4)No WRA assessment may be made if—

(a)the situation mentioned in section 54 or 55 is attributable to a mistake in the tax return as to the basis on which the devolved tax liability ought to have been calculated, and

(b)the mistake occurred because the tax return was made on the basis prevailing, or in accordance with the practice generally prevailing, at the time it was made.

59Time limits for WRA assessmentsE+W

(1)No WRA assessment may be made more than 4 years after the relevant date.

(2)But a WRA assessment of a taxpayer in any case involving a situation mentioned in section 54 or 55 brought about carelessly by the taxpayer or a related person may be made up to 6 years after the relevant date.

(3)And a WRA assessment of a taxpayer in any case involving a situation mentioned in section 54 or 55 brought about deliberately by the taxpayer or a related person may be made up to 20 years after the relevant date.

(4)A WRA assessment under section 55 is not out of time if it is made within the period of 12 months beginning with the day on which the repayment in question was made.

(5)If the taxpayer has died—

(a)any WRA assessment on the personal representatives must be made before the end of the period of 4 years beginning with the date of the death, and

(b)a WRA assessment is not to be made in respect of a relevant date more than 6 years before that date.

(6)Any objection to the making of a WRA assessment on the ground that the time limit for making it has expired can only be made on a review of or appeal against the assessment.

(7)In this section—

  • related person” (“person cysylltiedig”), in relation to the taxpayer, means—

    (a)

    a person acting on the taxpayer's behalf, or

    (b)

    a person who was a partner in the same partnership as the taxpayer;

  • relevant date” (“dyddiad perthnasol”) means—

    (a)

    if the tax return was made after the filing date, the day on which the tax return was made, or

    (b)

    otherwise, the filing date.

60Situations brought about carelessly or deliberatelyE+W

(1)This section applies for the purposes of sections 58 and 59.

(2)A situation is brought about carelessly by a person if the person fails to take reasonable care to avoid bringing about that situation.

(3)Where—

(a)information is provided to WRA,

(b)the person who provided the information, or the person on whose behalf it was provided, discovers some time later that the information was inaccurate, and

(c)that person fails to take reasonable steps to inform WRA,

any situation brought about by the inaccuracy is to be treated as having been brought about carelessly by that person.

(4)References to a situation brought about deliberately by a person include a situation brought about as a result of a deliberate inaccuracy in a document given to WRA.

61Assessment procedureE+W

(1)Notice of a WRA assessment must be issued to the taxpayer.

(2)The amount payable in accordance with a WRA assessment must be paid before the end of the period of 30 days beginning with the day on which the notice of the assessment is issued.

(3)After notice of the assessment has been issued to the taxpayer, the assessment may not be altered except in accordance with the express provisions of any enactment.

CHAPTER 7E+WRELIEF IN CASE OF EXCESSIVE ASSESSMENT OR OVERPAID TAX

Double assessmentE+W

62Claim for relief in case of double assessmentE+W

Overpaid tax etc.E+W

63Claim for relief for overpaid tax etc.E+W

Textual Amendments

Modifications etc. (not altering text)

C1Pt. 3 Ch. 7 applied (with modifications) (1.4.2018) by Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (anaw 1), ss. 48(3), 81(2)(3), Sch. 6 para. 14(2); S.I. 2018/34, art. 3

Commencement Information

I4S. 63 in force at 1.4.2018 by S.I. 2018/33, art. 3

[F1863AClaim for relief in respect of land transaction tax: regulations ceasing to have effectE+W

Unjustified enrichmentE+W

64Disallowing claims for relief under section 63 due to unjustified enrichmentE+W
65. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
66. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Other grounds for disallowing claimsE+W

67. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CHAPTER 8E+WPROCEDURE FOR MAKING CLAIMS ETC.

68Making claimsE+W

69. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

70Preservation of information etc.E+W

71Amendment of claim by claimantE+W

72Correction of claim by WRAE+W

73Giving effect to claims and amendmentsE+W

74Notice of enquiryE+W

75Completion of enquiryE+W

76Direction to complete enquiryE+W

77Giving effect to amendments under section 75E+W

78Time limit for making claimsE+W

79The claimant: partnershipsE+W

80Assessment of claimant in connection with claimE+W

81Contract settlementsE+W

PART 4 E+WINVESTIGATORY POWERS OF WRA

CHAPTER 1E+WINTRODUCTORY

OverviewE+W

82Overview of PartE+W

This Part is arranged as follows—

(a)Chapter 2 sets out WRA's investigatory powers in relation to information and documents,

(b)Chapter 3 sets out restrictions on the powers in Chapter 2,

(c)Chapter 4 sets out WRA's investigatory powers in relation to premises and other property,

(d)Chapter 5 sets out further investigatory powers,

(e)Chapter 6 sets out offences in relation to information notices, and

(f)Chapter 7 is about reviews and appeals against certain tribunal approvals of information notices and inspections.

InterpretationE+W

83Information noticesE+W
84. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
85. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CHAPTER 2E+WPOWERS TO REQUIRE INFORMATION AND DOCUMENTS

86Taxpayer noticesE+W

87Third party noticesE+W

88Tribunal approval of taxpayer notices and third party noticesE+W

89Power to require information and documents about persons whose identity is not knownE+W

90Requiring information and documents in relation to a group of undertakingsE+W

91. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

92Power to obtain information to enable a person's identity to be ascertainedE+W

93. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

94Time limit for issuing a tribunal approved information noticeE+W

95Complying with an information noticeE+W

96Producing copies of documentsE+W

CHAPTER 3E+WRESTRICTIONS ON POWERS IN CHAPTER 2

97Information notices: general restrictionsE+W

98Protection for journalistic materialE+W

99Protection for personal recordsE+W

100. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

101. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

102Protection for tax advisers and auditorsE+W

CHAPTER 4E+WINSPECTIONS OF PREMISES AND OTHER PROPERTY

103Power to inspect business premisesE+W

(1)If WRA has grounds for believing that the inspection of a person's business premises is required for the purpose of checking the person's tax position, WRA may enter the premises and inspect—

(a)the premises;

(b)business assets that are on the premises;

(c)business documents that are on the premises (but see section 110).

(2)But WRA may carry out such an inspection only with—

(a)the agreement of the occupier of the premises, or

(b)the approval of the tribunal.

(3)An inspection may be carried out—

(a)at a time agreed to by the occupier of the premises, or

(b)if the inspection has been approved by the tribunal—

(i)at a reasonable time specified in a notice issued to the occupier at least 7 days before that time, or

(ii)at any reasonable time if the tribunal, when approving the inspection, is satisfied that WRA has grounds for believing that notifying the occupier would seriously prejudice the assessment or collection of devolved tax.

(4)If WRA seeks to carry out an inspection without—

(a)the agreement of the occupier, or

(b)issuing a notice under subsection (3)(b)(i),

WRA must provide a notice at the time the inspection is to begin.

(5)A notice provided under subsection (4) must—

(a)if the occupier of the premises is present, be provided to the occupier;

(b)if the occupier is not present but there is a person present who appears to WRA to be in charge of the premises, be provided to that person;

(c)in any other case, be left in a prominent place on the premises.

(6)A notice issued under subsection (3)(b)(i), or provided under subsection (4), must state—

(a)that the inspection has been approved by the tribunal, and

(b)the possible consequences of obstructing a person exercising WRA's functions.

(7)The powers under this section do not include power to enter or inspect any part of the premises that is used solely as a dwelling.

104Carrying out inspections under section 103: further provisionE+W

(1)When carrying out an inspection under section 103, WRA has the following powers.

(2)On entering the business premises, WRA may—

(a)if it has grounds for believing that the carrying out of the inspection may be seriously obstructed, be accompanied by a constable, and

(b)be accompanied by a person authorised by WRA.

(3)WRA may make such examination or investigation as it considers to be necessary in the circumstances.

(4)WRA may direct that the premises or any part of them, or anything in them, be left undisturbed (either generally or in particular respects) for so long as is necessary for the purposes of any such examination or investigation.

(5)WRA, or a person accompanying WRA, may take samples of material from the premises.

(6)The power to take samples includes power—

(a)to carry out experimental borings or other works on the premises, and

(b)to install, keep or maintain monitoring and other apparatus on the premises.

(7)Any sample taken under subsection (5) is to be disposed of in such manner as WRA may determine.

105Carrying out inspections under section 103: use of equipment and materialsE+W

(1)WRA, or a person accompanying WRA, may take any equipment or materials required for the purpose of an inspection under section 103 onto the business premises being inspected.

(2)WRA, or a person accompanying WRA, may take equipment or materials onto the premises—

(a)at a time agreed to by the occupier of the premises, or

(b)at any reasonable time, if either—

(i)a notice was issued under section 103(3)(b)(i) and the notice specified that the equipment or materials were to be taken onto the premises, or

(ii)WRA has grounds for believing that issuing such a notice would seriously prejudice the assessment or collection of devolved tax.

(3)If equipment or materials are taken onto premises without—

(a)the agreement of the occupier, or

(b)a notice having been issued in accordance with subsection (2)(b)(i),

WRA must provide a notice at the time the equipment or materials are to be taken onto the premises.

(4)The notice must—

(a)if the occupier of the premises is present, be provided to the occupier;

(b)if the occupier is not present but there is a person present who appears to WRA to be in charge of the premises, be provided to that person;

(c)in any other case, be left in a prominent place on the premises.

(5)The notice must state the possible consequences of obstructing a person exercising WRA's functions.

(6)If the inspection, or the use of equipment or materials, has been approved by the tribunal, the notice must state that fact.

106Power to inspect premises or property for valuation etc.E+W

(1)WRA may enter premises and inspect the premises and any property on the premises for the purpose of valuing, measuring or determining the character of the premises or property if—

(a)the valuation, measurement or determination is required for the purposes of checking any person's tax position, and

(b)either condition 1 or 2 is met.

(2)Condition 1 is that—

(a)the inspection is carried out at a time agreed to by a relevant person, and

(b)a notice of the agreed time of the inspection has been issued to the relevant person.

(3)Condition 2 is that—

(a)the inspection has been approved by the tribunal, and

(b)a notice of the time of the inspection has been issued to a relevant person specified by the tribunal at least 7 days before that time.

(4)In this section, “relevant person” means—

(a)the occupier of the premises, or

(b)if the occupier cannot be identified or the premises are vacant, a person who controls the premises.

(5)A notice under subsection (2)(b) or (3)(b) must state possible consequences of obstructing a person exercising WRA's functions.

(6)A notice under subsection (3)(b) must also state that the inspection has been approved by the tribunal.

(7)If WRA considers it necessary to assist with the inspection, WRA may be accompanied by a person authorised by WRA.

107Producing authorisation to carry out inspectionsE+W

If a person carrying out an inspection under section 103 or 106 is unable to produce evidence of authority to carry out the inspection when asked to do so by—

(a)the occupier of the premises, or

(b)any other person who appears to be in charge of, or to control, the premises,

the inspection must stop and may not be continued until such evidence is produced.

108Approval of tribunal for inspection of premisesE+W

(1)WRA may ask the tribunal to approve—

(a)an inspection under section 103 or 106, or

(b)the exercise of powers under section 104 or 105 in relation to an inspection under section 103 which has been agreed to by the occupier of the premises.

(2)The tribunal's approval of an inspection under section 103 includes approval of the exercise of the powers under section 104 or 105 subject to any conditions imposed by the tribunal in approving the inspection.

(3)An application for approval may be made under subsection (1) without notice of the application being sent to—

(a)the person whose tax position is the subject of the proposed inspection, or

(b)the occupier of the premises.

(4)The tribunal may approve an inspection under section 103 only if—

(a)it is satisfied that WRA has grounds for believing that the inspection of the business premises is required for the purpose of checking a person's tax position, and

(b)if the application for approval was made without notice, it is satisfied that sending notice of the application might have prejudiced the assessment or collection of devolved tax.

(5)The tribunal may approve an inspection under section 106 only if it is satisfied that the inspection is required for the purposes of checking any person's tax position and—

(a)if the application for approval was made without notice, it is satisfied that sending notice of the application might have prejudiced the assessment or collection of devolved tax, or

(b)in any other case—

(i)the person whose tax position is the subject of the proposed inspection has been given a reasonable opportunity to make representations to WRA about the inspection,

(ii)the occupier of the premises has been given a reasonable opportunity to make such representations, and

(iii)the tribunal has been provided with a summary of any representations made.

(6)Subsection (5)(b)(ii) does not apply if the tribunal is satisfied that the occupier of the premises cannot be identified.

(7)Where the tribunal has approved an inspection under subsection (1)(a) or the exercise of a power under subsection (1)(b), WRA must carry out the inspection or exercise the power⁠—

(a)no later than 3 months after the day on which the tribunal's approval was given, or

(b)within such shorter period as the tribunal may specify when giving the approval.

109Power to mark assets and to record informationE+W

The powers under sections 103 to 106 include—

(a)power to mark business assets, and anything containing business assets, for the purpose of indicating that they have been inspected, and

(b)power to obtain and record information (whether electronically or otherwise) relating to the premises, property, assets and documents that have been inspected.

110Restriction on inspection of documentsE+W

WRA may not inspect a document under this Chapter if (or to the extent that), by virtue of Chapters 2 and 3, an information notice issued at the time of the inspection to the occupier of the premises could not require the occupier to produce the document.

111Interpretation of Chapter 4E+W

In this Chapter—

  • business assets” (“asedau busnes”) means assets that WRA has reason to believe are owned, leased or used in connection with the carrying on of a business by any person, but does not include documents;

  • business documents” (“dogfennau busnes”) means documents (or copies of documents) that relate to the carrying on of a business by any person;

  • business premises” (“mangre busnes”), in relation to a person, means premises (or any part of premises) that WRA has reason to believe are (or is) used in connection with the carrying on of a business by or on behalf of the person;

  • premises” (“mangre”) includes any building or structure, any land and any means of transport.

CHAPTER 5E+WFURTHER INVESTIGATORY POWERS

112Power to copy and remove documentsE+W

(1)Where a document is inspected by WRA or is produced by a person, WRA may take copies of the document or make extracts from it.

(2)Where a document is inspected by WRA or is produced by a person, WRA may—

(a)remove the document at a reasonable time, and

(b)retain the document for a reasonable period,

if it appears to WRA to be necessary to do so.

(3)Where WRA removes a document, WRA must supply free of charge—

(a)a receipt for the document, and

(b)a copy of the document,

if requested to do so by the person who was in possession or power of the document when it was produced or inspected.

(4)The removal of a document under subsection (2)(a) is not to be regarded as breaking any lien claimed on the document.

(5)Where a document removed under subsection (2)(a) is lost or damaged before it is returned, WRA is liable to compensate the owner of the document for any expenses reasonably incurred in replacing or repairing the document.

(6)In this section, references to a document include a copy of the document.

113Further provision about recordsE+W

(1)This section applies to any provision of this Act that—

(a)requires a person to produce a document,

(b)permits WRA—

(i)to inspect a document,

(ii)to make or take copies of or extracts from a document, or

(iii)to remove a document,

(c)makes provision about penalties or offences in connection with the production or inspection of documents, including in connection with the failure to produce or permit the inspection of documents, or

(d)makes any other provision in connection with the requirement mentioned in paragraph (a) or the powers mentioned in paragraph (b).

(2)A provision to which this section applies has effect as if—

(a)any reference in the provision to a document were a reference to anything in which information of any description is recorded, and

(b)any reference in the provision to a copy of a document were a reference to anything onto which information recorded in the document has been copied, by whatever means and whether directly or indirectly.

(3)WRA may, at any reasonable time, obtain access to, inspect and check the operation of any computer and any associated apparatus or material which is or has been used in connection with a relevant document.

(4)In subsection (3), “relevant document” means a document—

(a)that a person has been, or may be, required to produce by or under a provision of this Act, or

(b)that WRA may—

(i)inspect,

(ii)make or take copies of or extracts from, or

(iii)remove.

(5)WRA may require any assistance that it reasonably requires for the purposes of subsection (3) from—

(a)the person by whom or on whose behalf the computer is or has been used, or

(b)any person having charge of, or otherwise concerned with the operation of, the computer, apparatus or material.

(6)If a person exercising the power under subsection (3) is unable to produce evidence of authority to do so when asked to provide such evidence by—

(a)the person by whom or on whose behalf the computer is or has been used, or

(b)any person having charge of, or otherwise concerned with the operation of, the computer, apparatus or material,

the person exercising the power must stop and may not continue until such evidence is produced.

CHAPTER 6E+WOFFENCES RELATING TO INFORMATION NOTICES

114Offence of concealing etc. documents following information noticeE+W

(1)A person commits an offence if—

(a)WRA issues an information notice to the person—

(i)which requires the person to produce a document, and

(ii)which has been approved by the tribunal, and

(b)the person conceals, destroys or otherwise disposes of (or arranges for the concealment, destruction or disposal of) that document.

(2)A person may commit an offence under subsection (1) despite the fact that the person has appealed against the information notice or against a requirement in it.

(3)A person does not commit an offence under subsection (1) if the person acts after the original document has been produced in accordance with the information notice, unless WRA has notified the person that the document must continue to be available for inspection (and has not withdrawn the notification).

(4)A person does not commit an offence under subsection (1) where a copy of a document has been produced in accordance with section 96(1), if the person acts after the end of the period of 6 months beginning with the day on which the copy was produced unless, before the end of that period, WRA has made a request for the original document under section 96(3).

(5)It is a defence for a person charged with an offence under subsection (1) to show that the person had a reasonable excuse for concealing, destroying or otherwise disposing of (or for arranging for the concealment, destruction or disposal of) the document.

(6)A person who commits an offence under subsection (1) is liable—

(a)on summary conviction, to a fine;

(b)on conviction on indictment, to imprisonment for a term not exceeding 2 years or to a fine (or both).

115Offence of concealing etc. documents following notificationE+W

(1)A person commits an offence if the person conceals, destroys or otherwise disposes of (or arranges for the concealment, destruction or disposal of) a document after WRA has told the person that—

(a)a document is to be, or is likely to be, the subject of an information notice addressed to that person (see section 88(3)(b)), and

(b)WRA intends to seek the approval of the tribunal for the issuing of the information notice (see section 87(2)(b)) or is required to seek such approval (see sections 86, 89(1)(d) and 92(1)).

(2)A person does not commit an offence under subsection (1) if the person conceals, destroys or otherwise disposes of the document after—

(a)the end of the period of 6 months beginning with the day on which WRA told the person (or last told the person), or

(b)an information notice has been issued requiring the person to produce the document.

(3)It is a defence for a person charged with an offence under subsection (1) to show that the person had a reasonable excuse for concealing, destroying or otherwise disposing of (or for arranging for the concealment, destruction or disposal of) the document.

(4) A person who commits an offence under subsection (1) is liable—

(a)on summary conviction, to a fine;

(b)on conviction on indictment, to imprisonment for a term not exceeding 2 years or to a fine (or both).

CHAPTER 7E+WTRIBUNAL APPROVALS

116No review or appeal of tribunal approvalsE+W

(1)In section 11(5) of the Tribunals, Courts and Enforcement Act 2007 (c. 15) (decisions excluded from right to appeal to Upper Tribunal), after paragraph (c) insert—

(ca)any decision of the First-tier Tribunal under section 88, 89(3) or 92(3) of the Tax Collection and Management (Wales) Act 2016 (anaw 6) (approval for Welsh Revenue Authority to issue certain information notices),

(cb)any decision of the First-tier Tribunal under section 108 of that Act (approval for Welsh Revenue Authority to inspect premises),.

(2)In section 13(8) of that Act (decisions excluded from right to appeal to Court of Appeal etc.), after paragraph (b) insert—

(ba)any decision of the Upper Tribunal under section 88, 89(3) or 92(3) of the Tax Collection and Management (Wales) Act 2016 (anaw 6) (approval for Welsh Revenue Authority to issue certain information notices),

(bb)any decision of the Upper Tribunal under section 108 of that Act (approval for Welsh Revenue Authority to inspect premises),.

PART 5 E+WPENALTIES

CHAPTER 1E+WOVERVIEW

117Overview of PartE+W

(1)This Part makes provision about penalties relating to devolved taxes, including—

(a)penalties relating to failures to make tax returns or to pay devolved tax,

(b)penalties relating to inaccuracies,

(c)penalties relating to record-keeping and reimbursement arrangements, and

(d)penalties relating to investigations.

(2)It includes provision about—

(a)the circumstances which liability to those penalties arises,

(b)the amounts of those penalties,

(c)the circumstances in which liability to those penalties may be suspended or the amounts of those penalties may be reduced,

(d)the assessment of those penalties, and

(e)the payment of those penalties.

CHAPTER 2E+WPENALTIES FOR FAILURE TO MAKE RETURNS OR PAY TAX

Penalty for failure to make tax returnE+W

118Penalty for failure to make tax return on or before filing dateE+W

A person is liable to a penalty of £100 if the person fails to make a tax return on or before the filing date.

119Penalty for failure to make tax return within 6 months from filing dateE+W

(1)A person is liable to a penalty if the person's failure to make a tax return continues after the end of the period of 6 months beginning with the day after the filing date.

(2)The penalty is the greater of—

(a)5% of the amount of the devolved tax to which the person would have been liable if the tax return had been made, and

(b)£300.

120Penalty for failure to make tax return within 12 months from filing dateE+W

(1)A person is liable to a penalty if the person's failure to make a tax return continues after the end of the period of 12 months beginning with the day after the filing date.

(2)Where, by failing to make the tax return, the person deliberately withholds information which would enable or assist WRA to assess the person's liability to a devolved tax, the penalty is the greater of—

(a)100% of the amount of the devolved tax to which the person would have been liable if the tax return had been made, and

(b)£300.

(3)In any case not falling within subsection (2), the penalty is the greater of—

(a)5% of the amount of the devolved tax to which the person would have been liable if the tax return had been made, and

(b)£300.

121Reduction in penalty for failure to make tax return: disclosureE+W

(1)WRA may reduce a penalty under section 118, 119 or 120 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 devolved tax unpaid by reason of the information having been withheld, and

(c)allowing WRA access to records for the purpose of checking how much devolved 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.

Penalty for failure to pay taxE+W

[F19122Penalty for failure to pay tax on timeE+W

(1)A person is liable to a penalty if the person has failed to pay an amount of devolved tax on or before the penalty date in respect of that amount.

[F20(2)The penalty—

(a)in respect of an amount of land transaction tax, is 5% of the amount of unpaid tax;

(b)in respect of an amount of landfill disposals tax, is 1% of the amount of unpaid tax.]

[F21(2A)But see section 122ZA for an exception to the rule in subsection (1).]

(3)In this section and in [F22sections 122ZA and 122A], the penalty date in respect of an amount of devolved tax specified in column 3 of Table A1 is the date specified in column 4.

TABLE A1
Item Devolved Tax Amount of Tax Penalty date
1 Land transaction tax Amount (or additional amount) payable as a result of a tax return made by the buyer in a land transaction (unless the amount falls within item 8 or 9). The date falling 30 days after the filing date for the return.
2 Landfill disposals tax Amount [F23payable as a result of] a tax return. The date falling 30 days after the filing date for the return.
3 Any devolved tax Amount payable as a result of a WRA determination made in place of a tax return. The date falling 30 days after the date by which WRA believes the tax return was required to be made.
4 Any devolved tax Amount payable as a result of a WRA assessment made in place of a tax return (unless the amount falls within item 7). The date falling 30 days after the date by which WRA believes the tax return was required to be made.
5 Any devolved tax Amount (or additional amount) payable as a result of a WRA assessment made where a tax return has been made. The date falling 30 days after the date by which the amount (or additional amount) is required to be paid.
6 Any devolved tax Amount (or additional amount) payable as a result of an amendment or a correction to a tax return. The date falling 30 days after the date by which the amount (or additional amount) is required to be paid.
7 Any devolved tax Amount (or additional amount) payable as a result of a WRA assessment made for the purposes of making an adjustment to counteract a tax advantage (see Part 3A) in a case where a tax return which WRA has reason to believe was required to be made has not in fact been made. The date falling 30 days after the date by which the amount (or additional amount) is required to be paid.
8 Land transaction tax Where a deferral request is made under section 58 of LTTA, a deferred amount required to be paid by virtue of section 61(1)of that Act. The date falling 30 days after the date by which the deferred amount is required to be paid.
9 Land transaction tax Where a deferral request is made under section 58 of LTTA, a refused amount within the meaning of section 61(2)(a) of that Act. The date falling 30 days after the date by which the refused amount is required to be paid.
10 Landfill disposals tax Amount charged by a charging notice issued under section 48 or 49 of LDTA. The date falling 30 days after the date by which the amount is required to be paid.
11 Any devolved tax A postponed amount within the meaning of section 181G(2). The date falling 30 days after the date on which the postponement period ends (see section 181G as to the calculation of postponement periods).

(4)In this section, “"deferred amount”” has the same meaning as in section 58(6)(a) of LTTA.

(5)The Welsh Ministers may by regulations modify Table A1.]

123. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Penalties under Chapter 2: generalE+W

124Interaction of penaltiesE+W

(1)Where a person is liable to more than one penalty under sections 118 to 120 which is determined by reference to a liability to a devolved tax, the aggregate of the amounts of those penalties must not exceed 100% of the liability to the devolved tax.

(2)Where a person is liable to—

(a)a penalty under this Chapter which is determined by reference to a liability to a devolved tax, and

(b)any other penalty (other than a penalty under this Chapter) which is determined by reference to the same liability to a devolved tax,

the amount of the penalty under this Chapter is to be reduced by the amount of that other penalty.

125Special reduction in penalty under Chapter 2E+W

(1)WRA may reduce a penalty under this Chapter if it thinks it right to do so because of special circumstances.

(2)In subsection (1), “special circumstances” does not include—

(a)ability to pay, or

(b)the fact that a potential loss of revenue from one person is balanced by a potential over-payment by another.

(3)In subsection (1), the reference to reducing a penalty includes a reference to—

(a)remitting a penalty entirely,

(b)suspending a penalty, and

(c)agreeing a compromise in relation to proceedings for a penalty.

(4)In this section a reference to a penalty include a reference to any interest in relation to a penalty.

126Reasonable excuse for failure to make tax return or pay taxE+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 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 section 122 in relation to the failure.

(3)For the purposes of subsections (1) and (2)—

(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.

127Assessment of penalties under Chapter 2E+W

(1)Where a person becomes liable to a penalty under this Chapter, WRA must—

(a)assess the penalty,

(b)issue notice to the person of the penalty assessed, and

(c)state in the notice the period or transaction in respect of which the penalty has been assessed.

(2)An assessment of a penalty under this Chapter may be combined with an assessment to a devolved tax.

(3)A supplementary assessment may be made in respect of a penalty under section 119 or 120 if an earlier assessment operated by reference to an underestimate of the amount of devolved tax to which a person would have been liable if a tax return had been made.

(4)If—

(a)an assessment in respect of a penalty under section 119 or 120 is based on the amount of devolved tax to which a person would have been liable if a tax return had been made, and

(b)that liability is found by WRA to be excessive,

WRA may issue a notice to the person liable to the penalty amending the assessment so that it is based on the correct amount.

(5)A supplementary assessment may be made in respect of a penalty under section 122 if an earlier assessment operated by reference to an underestimate of the amount of devolved tax which was payable.

(6)If an assessment in respect of a penalty under section 122 is based on an amount of tax payable that is found by WRA to be excessive, WRA may issue a notice to the person liable to the penalty amending the assessment so that it is based on the correct amount.

(7)An amendment made under subsection (4) or (6)—

(a)does not affect when the penalty must be paid, and

(b)may be made after the last day on which the assessment in question could have been made under section 128.

128Time limit for assessment of penalties under Chapter 2E+W

(1)An assessment of a penalty under this Chapter in respect of any amount must be made on or before the later of date A and (where it applies) date B.

(2)Date A is the last day of the period of 2 years beginning with—

(a)in the case of failure to make a tax return, the filing date, or

(b)in the case of failure to pay a devolved tax, the penalty date.

(3)Date B is the last day of the period of 12 months beginning with—

(a)in the case of a failure to make a tax return—

(i)the end of the appeal period for the assessment of the amount of devolved tax to which a person would have been liable if the tax return had been made, or

(ii)if there is no such assessment, the date on which that liability is ascertained or it is ascertained that the liability is nil;

(b)in the case of a failure to pay a devolved tax—

(i)the end of the appeal period for the assessment of the amount of devolved tax in respect of which the penalty is assessed, or

(ii)if there is no such assessment, the date on which that amount of devolved tax is ascertained.

(4)In subsection (2)(b), “penalty date” has the meaning given by section 122(2).

(5)In subsection (3)(a) and (b), “appeal period” means the later of the following periods—

(a)if no appeal is made, the period during which an appeal could be made, and

(b)if an appeal is made, the period ending with its final determination or withdrawal.

CHAPTER 3E+WPENALTIES FOR INACCURACIES

Penalties for inaccuracies in documentsE+W

129Penalty for inaccuracy in document given to WRAE+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, or

(c)a false or inflated claim to repayment of devolved tax.

(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.

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

(1)The penalty for a deliberate inaccuracy is 100% of the potential lost revenue.

(2)The penalty for a careless inaccuracy is 30% of the potential lost revenue.

131Suspension of penalty for careless inaccuracyE+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.

132Penalty for deliberate inaccuracy in document given to WRA by another personE+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, or

(c)a false or inflated claim to repayment of devolved tax.

(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 100% of the potential lost revenue.

Penalty for failure to notify under-assessment etc.E+W

133Penalty for failure to notify under-assessment or under-determinationE+W

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

(a)a WRA assessment understates the person's liability to a devolved tax, and

(b)the person has failed to take reasonable steps to notify WRA, within the period of 30 days beginning with the day on which the notice of assessment is issued, that it is an under-assessment.

(2)In deciding what steps (if any) were reasonable, WRA must consider whether the person knew, or should have known, about the under-assessment.

(3)The penalty payable under this section is 30% of the potential lost revenue.

(4)In this section—

(a)WRA assessment” includes a determination made by WRA under section 52, and

(b)accordingly, references in this Chapter to an under-assessment include references to an under-determination.

Potential lost revenueE+W

134Meaning of “potential lost revenue”E+W

In this Chapter, “potential lost revenue” has the meaning given by sections 135 to 138.

135Potential lost revenue: normal ruleE+W

(1)The “potential lost revenue” in respect of—

(a)an inaccuracy in a document (including an inaccuracy attributable to a supply of false information or withholding of information), or

(b)a failure to notify an under-assessment,

is the additional amount payable in respect of a devolved tax [F24or tax credit] as a result of correcting the inaccuracy or under-assessment.

(2)The reference in subsection (1) to the additional amount payable includes a reference to—

(a)an amount payable to WRA having been erroneously paid by way of repayment of devolved tax, F25...

(b)an amount which would have been repayable by WRA had the inaccuracy or under-assessment not been corrected, [F26and

(c)an amount which WRA would have been required to set off against a person’s liability to tax, or to pay to a person, had the inaccuracy or under-assessment not been corrected.]

136Potential lost revenue: multiple errorsE+W

(1)Where a person is liable to a penalty under section 129 in respect of more than one inaccuracy, and the calculation of potential lost revenue under section 135 in respect of each inaccuracy depends on the order in which they are corrected, careless inaccuracies are to be taken to be corrected before deliberate inaccuracies.

(2)In calculating potential lost revenue where a person is liable to a penalty under section 129 in respect of one or more understatements in one or more documents relating to a tax period or transaction, account must be taken of any overstatements in any document given by the person which relate to the same tax period or transaction.

(3)In subsection (2)—

(a)understatement” means an inaccuracy that meets condition 1 in section 129, and

(b)overstatement” means an inaccuracy that does not meet that condition.

(4)For the purposes of subsection (2) overstatements are to be set against understatements in the following order—

(a)understatements in respect of which the person is not liable to a penalty,

(b)careless understatements, and

(c)deliberate understatements.

(5)In calculating, for the purposes of a penalty under section 129, potential lost revenue in respect of a document given by or on behalf of a person, no account is to be taken of the fact that a potential loss of revenue from a person is or may be balanced by a potential overpayment by another person (except to the extent that an enactment requires a person's liability to a devolved tax to be adjusted by reference to another person's liability to a devolved tax).

137Potential lost revenue: lossesE+W

(1)Where an inaccuracy has the result that a loss is wrongly recorded for the purposes of a devolved tax and the loss has been wholly used to reduce the amount payable in respect of that tax, the potential lost revenue is calculated in accordance with section 135.

(2)Where an inaccuracy has the result that a loss is wrongly recorded for the purposes of a devolved tax and the loss has not been wholly used to reduce the amount payable in respect of that tax, the potential lost revenue is—

(a)the potential lost revenue calculated in accordance with section 135 in respect of any part of the loss that has been used to reduce the amount payable in respect of that tax, plus

(b)10% of any part that has not.

(3)Subsections (1) and (2) apply both—

(a)to a case where no loss would have been recorded but for the inaccuracy, and

(b)to a case where a loss of a different amount would have been recorded (but in that case subsections (1) and (2) apply only to the difference between the amount recorded and the true amount).

(4)The potential lost revenue in respect of a loss is nil where, because of the nature of the loss or the circumstances of the person chargeable to the devolved tax, there is no reasonable prospect of the loss being used to support a claim to reduce any person's liability to that tax.

138Potential lost revenue: delayed taxE+W

(1)Where an inaccuracy resulted in an amount of devolved tax being declared later than it should have been (“the delayed tax”), the potential lost revenue is—

(a)5% of the delayed tax for each year of the delay;

(b)a percentage of the delayed tax, for each period of delay of less than a year, equating to 5% per year.

(2)This section does not apply to a case to which section 137 applies.

Penalties under Chapter 3: generalE+W

139Reduction in penalty under Chapter 3 for disclosureE+W

(1)WRA may reduce a penalty payable under this Chapter where a person makes a qualifying disclosure.

(2)A “qualifying disclosure” means disclosure of—

(a)an inaccuracy which is relevant to a person's liability to a devolved tax,

(b)a supply of false information, or withholding of information, which is relevant to a person's liability to a devolved tax, or

(c)a failure to disclose an under-assessment in respect of a devolved tax.

(3)A person makes a qualifying disclosure by—

(a)telling WRA about it,

(b)giving WRA reasonable help in quantifying—

(i)the inaccuracy,

(ii)the inaccuracy attributable to the supply of false information or withholding of information, or

(iii)the under-assessment, and

(c)allowing WRA access to records for the purpose of ensuring that—

(i)the inaccuracy,

(ii)the inaccuracy attributable to the supply of false information or withholding of information, or

(iii)the under-assessment,

is fully corrected.

(4)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.

(5)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 inaccuracy, the supply of false information or withholding of information, or the under-assessment, and

(b)otherwise, is “prompted”.

(6)Quality”, in relation to disclosure, includes timing, nature and extent.

140Special reduction in penalty under Chapter 3E+W

(1)WRA may reduce a penalty under this Chapter if it thinks it right to do so because of special circumstances.

(2)In subsection (1), “special circumstances” does not include—

(a)ability to pay, or

(b)the fact that a potential loss of revenue from one person is balanced by a potential over-payment by another.

(3)In subsection (1), the reference to reducing a penalty includes a reference to—

(a)remitting a penalty entirely,

(b)suspending a penalty, and

(c)agreeing a compromise in relation to proceedings for a penalty.

(4)In this section, references to a penalty include references to any interest in relation to a penalty.

141Assessment of penalties under Chapter 3E+W

(1)Where a person becomes liable to a penalty under this Chapter, WRA must—

(a)assess the penalty,

(b)issue a notice to the person of the penalty assessed, and

(c)state in the notice the period or transaction in relation to which the penalty has been assessed.

(2)An assessment of a penalty under this Chapter may be combined with an assessment to devolved tax.

(3)An assessment of a penalty under section 129 or 132 must be made before the end of the period of 12 months beginning with—

(a)the end of the appeal period for the decision correcting the inaccuracy, or

(b)if there is no assessment to the tax concerned as a result of that decision, the day on which the inaccuracy is corrected.

(4)An assessment of a penalty under section 133 must be made before the end of the period of 12 months beginning with—

(a)the end of the appeal period for the assessment of tax which corrected the understatement, or

(b)if there is no assessment correcting the understatement, the day on which the understatement is corrected.

(5)In subsections (3) and (4), “appeal period” means the later of the following periods—

(a)if no appeal is made, the period during which an appeal could be made, and

(b)if an appeal is made, the period ending with its final determination or withdrawal.

(6)Subject to subsections (3) and (4), a supplementary assessment may be made in respect of a penalty under this Chapter if an earlier assessment operated by reference to an underestimate of the potential lost revenue.

InterpretationE+W

142Interpretation of Chapter 3E+W

In this Chapter—

(a)a reference to giving a document to WRA includes—

(i)a reference to communicating information to WRA in any form and by any method (whether by post, fax, email, telephone or otherwise), and

(ii)a reference to making a statement or declaration in a document;

(b)a reference to making a tax return or doing anything in relation to a tax return includes a reference to amending a tax return or doing anything in relation to an amended tax return;

(c)a reference to a loss includes a reference to a charge, expense, deficit and any other amount which may be available for, or relied on to claim, a deduction or relief;

(d)a reference to action includes a reference to omission.

CHAPTER 4E+WPENALTIES RELATING TO RECORD-KEEPING AND REIMBURSEMENT ARRANGEMENTS

Penalty for failure to keep and preserve records in connection with tax returns or claimsE+W

143Penalty for failure to keep and preserve recordsE+W

(1)A person who fails to comply with section 38 or 69 is liable to a penalty not exceeding £3,000.

(2)But no penalty is incurred if WRA is satisfied that any facts that it reasonably requires to be proved, and which would have been proved by the records, are proved by other documentary evidence provided to it.

144Reasonable excuse for failure to keep and preserve recordsE+W

(1)If a person who fails to comply with section 38 or 69 satisfies WRA or (on appeal) the tribunal that there is a reasonable excuse for the failure, there is no liability to a penalty under section 143 in relation to the failure.

(2)For the purposes of subsection (1)—

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

(b)where the 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 the 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.

145Assessment of penalties under section 143E+W

(1)Where a person becomes liable to a penalty under section 143, WRA must—

(a)assess the penalty, and

(b)issue notice to the person of the penalty assessed.

(2)An assessment of a penalty under section 143 must be made within the period of 12 months beginning with the day on which WRA first believed the person to have failed to comply with section 38 or 69.

CHAPTER 5E+WPENALTIES RELATING TO INVESTIGATIONS

Penalties for failure to comply or obstructionE+W

146Penalty for failure to comply with information notice or obstructionE+W
147Daily default penalty for failure to comply with information notice or obstructionE+W
148Effect of extension of time limit for complianceE+W
149Reasonable excuse for failure to comply or obstructionE+W

Further penalties for continuing failure to comply or obstructionE+W

150Increased daily default penalty for failure to comply with information noticeE+W
151. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Penalty for inaccurate information or documentsE+W

152Penalty for inaccurate information or documentsE+W

Penalties under Chapter 5: generalE+W

153Assessment of penalties under Chapter 5E+W

CHAPTER 6E+WPAYMENT OF PENALTIES

154. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CHAPTER 7E+WSUPPLEMENTARY

155Double jeopardyE+W

156Power to make regulations about penaltiesE+W

PART 6 E+WINTEREST

CHAPTER 1E+WINTEREST ON AMOUNTS PAYABLE TO WRA

Late payment interestE+W

[F27157Late payment interest on devolved taxesE+W
158Late payment interest: supplementaryE+W

Late payment interest start date: special rulesE+W

No commentary item could be found for this reference key-d6ddbca786acb15d1f7eb27a7d0c24cc159Late payment interest start date: amendments to assessments etc.E+W
160. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CHAPTER 2E+WINTEREST ON AMOUNTS PAYABLE BY WRA

Repayment interestE+W

161. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
162Repayment interest: supplementaryE+W

CHAPTER 3E+WRATES OF INTEREST

163Rates of late payment interest and repayment interestE+W

PART 7 E+WPAYMENT AND ENFORCEMENT

PaymentE+W

164. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

165Relevant amounts payable to WRAE+W

166Receipts for paymentE+W

167Fees for paymentE+W

Certification of debtE+W

168Certificates of debtE+W

RecoveryE+W

169. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

170Enforcement by taking control of goodsE+W

PART 8 E+WREVIEWS AND APPEALS

CHAPTER 1E+WINTRODUCTORY

OverviewE+W

171Overview of PartE+W

(1)This Part makes provision for reviews of and appeals against certain decisions made by WRA, including provision about—

(a)the decisions which are appealable decisions,

(b)the right to request WRA to review appealable decisions,

(c)the duty of WRA to carry out reviews on request,

(d)the effect of review conclusions,

(e)the right to appeal to the tribunal against appealable decisions, whether following review or otherwise, and

(f)the duty of the tribunal to determine those appeals.

(2)This Part also makes provision for disputes relating to appealable decisions to be settled by agreement.

Appealable decisionsE+W

172. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CHAPTER 2E+WREVIEWS

173Requesting a reviewE+W

(1)A request to review an appealable decision must be made by giving a notice (a “notice of request”) to WRA.

(2)A notice of request must set out the grounds for review.

(3)But a person may not give a notice of request if subsection (4), (5) or (6) applies.

(4)This subsection applies where—

(a)the decision which the person wishes WRA to review is a decision to amend the person's tax return under section 45 while an enquiry is in progress, and

(b)the enquiry has not yet been completed.

(5)This subsection applies where the person has appealed to the tribunal against the decision and the appeal has not been withdrawn.

(6)This subsection applies where the person—

(a)has entered into a settlement agreement in relation to the decision which the person wishes WRA to review, and

(b)has not given notice of withdrawal from the agreement under section 184(4).

(7)This section does not prevent an appealable decision from being dealt with in accordance with section 184.

174Time limit for requesting a reviewE+W

(1)Where a notice of request is given to WRA before the end of the relevant period, WRA must review the decision to which the notice relates.

(2)Subject to subsection (3), the relevant period is—

(a)where the request relates to a decision to amend the person's tax return under section 45 while an enquiry is in progress, the period of 30 days beginning with the day on which WRA issues a closure notice informing the person that the enquiry is completed;

(b)where the request relates to a decision of any other kind, the period of 30 days beginning with the day on which WRA issues the notice informing the person of the decision.

(3)Where the person—

(a)has entered into a settlement agreement in respect of the decision to which the request relates, but

(b)has subsequently given notice of withdrawal from the agreement under section 184(4),

the relevant period is the period of 30 days beginning with the day on which the notice of withdrawal is given.

175Late request for reviewE+W

(1)Where a person gives a notice of request to WRA after the relevant period—

(a)WRA may review the decision to which the notice relates, and

(b)must do so if it is satisfied that the person—

(i)had a reasonable excuse for not giving it during the relevant period, and

(ii)subsequently gave it to WRA without unreasonable delay.

(2)WRA must issue a notice to the person indicating whether or not it will review the decision.

(3)Where WRA issues a notice indicating that it will not review the decision, the person may apply to the tribunal for a direction requiring WRA to carry out the review.

(4)The tribunal may give such a direction, and must do so if it is satisfied that the applicant —

(a)had a reasonable excuse for not giving the notice of request to WRA during the relevant period,

(b)subsequently gave it to WRA without unreasonable delay, and then

(c)applied to the tribunal without unreasonable delay.

(5)In this section, “the relevant period” has the same meaning as in section 174.

176Carrying out a reviewE+W

(1)The nature and extent of the review are to be such as appear appropriate to WRA in the circumstances.

(2)For the purpose of subsection (1), WRA must, in particular, have regard to steps taken before the beginning of the review—

(a)by WRA in reaching the decision, and

(b)by any person in seeking to resolve disagreement about the decision.

(3)The review must take account of any representations made by the person who gave the notice of request at a stage which gives WRA a reasonable opportunity to consider them.

(4)The review may conclude that WRA's decision is to be—

(a)affirmed,

(b)varied, or

(c)cancelled.

(5)WRA must issue notice of the conclusions of the review to the person who gave the notice of request—

(a)within the period of 45 days beginning with the day on which WRA received the notice of request, or

(b)within such other period as WRA and the person may agree.

(6)But where the tribunal directs WRA to carry out a review, WRA must issue notice of the conclusions of the review—

(a)within the period of 45 days beginning with the day on which the tribunal gave the direction, or

(b)within such other period as WRA and the person may agree.

(7)If WRA fails to issue notice in accordance with subsection (5) or (6)—

(a)the review is deemed to have concluded that WRA's decision is to be upheld, and

(b)WRA must issue notice of that to the person who gave the notice of request.

177Effect of conclusions of reviewE+W

(1)Where WRA issues notice under section 176(5), (6) or (7) in relation to a review—

(a)the conclusions in the notice are to be treated as if the tribunal had determined an appeal against the decision to which the notice relates in the manner set out in the conclusions, but

(b)the conclusions are not to be treated as a decision of the tribunal for the purposes of sections 9 to 13 of the Tribunals, Courts and Enforcement Act 2007 (c. 15) (review of decisions and appeals against decisions).

(2)But subsection (1) does not apply if, or to the extent that—

(a)WRA and the person subsequently enter into a settlement agreement in relation to the decision to which the notice relates, or

(b)the tribunal subsequently determines an appeal made against the decision to which the notice relates.

CHAPTER 3E+WAPPEALS

178Making an appealE+W

(1)An appeal against an appealable decision must be made to the tribunal.

(2)But a person may not make an appeal to the tribunal if subsection (3), (4) or (5) applies.

(3)This subsection applies where—

(a)the decision which the person wishes to appeal against is a decision of WRA to amend the person's tax return under section 45 while an enquiry is in progress, and

(b)the enquiry has not yet been completed.

(4)This subsection applies where—

(a)the person has given WRA notice of a request under section 173 for a review of the decision which the person wishes to appeal against, and

(b)the period within which WRA must issue notice of the conclusions of the review under section 176(5) has not yet ended.

(5)This subsection applies where the person—

(a)has entered into a settlement agreement in relation to the decision which the person wishes to appeal against, and

(b)has not given notice of withdrawal from the agreement under section 184(4).

(6)This section does not prevent an appealable decision from being dealt with in accordance with section 184.

179Time limit for making an appealE+W

(1)An appeal must be made to the tribunal before the end of the relevant period.

(2)Subject to subsections (3) and (4), the relevant period is—

(a)where the appeal relates to a decision to amend the appellant's tax return under section 45 while an enquiry is in progress, the period of 30 days beginning with the day on which WRA issues a closure notice informing the appellant that the enquiry is completed;

(b)where the appeal relates to a decision of any other kind, the period of 30 days beginning with the day on which WRA issues the notice informing the appellant of the decision.

(3)Subject to subsection (4), where WRA has reviewed the decision to which the appeal relates, the relevant period is the period of 30 days beginning with the day on which notice is issued to the appellant under section 176(5), (6) or (7) in relation to the review.

(4)Where the appellant has entered into a settlement agreement in relation to the decision to which the appeal relates but has subsequently given notice of withdrawal from the agreement under section 184(4), the relevant period is—

(a)the period of 30 days beginning with the day on which the notice of withdrawal is given, or

(b)if later, the relevant period applicable under subsection (3).

180Making a late appealE+W

(1)An appeal may be made to the tribunal after the relevant period if the tribunal gives permission.

(2)In this section, “the relevant period” has the same meaning as in section 179.

181Determining an appealE+W

(1)If an appeal against an appealable decision is made to the tribunal in accordance with section 179 or 180 (and not withdrawn), the tribunal must determine the appeal.

(2)The tribunal may determine that the appealable decision is to be—

(a)affirmed,

(b)varied, or

(c)cancelled.

CHAPTER 4E+WMISCELLANEOUS AND SUPPLEMENTARY

Consequences of reviews and appealsE+W

182. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
183. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Settlement agreementsE+W

184Settling disputes by agreementE+W

PART 9 E+WINVESTIGATION OF CRIMINAL OFFENCES

185Powers to investigate criminal offencesE+W

(1)After section 114 of the Police and Criminal Evidence Act 1984 (c. 60) (application of Act to Revenue and Customs) insert—

114ZAApplication of Act to Welsh Revenue Authority

(1)The Welsh Ministers may by regulations—

(a)direct that any provision of this Act which relates to investigations of offences conducted by police officers or to the detention of persons by the police is to apply, subject to such modifications as the regulations may specify, to investigations of offences conducted by the Welsh Revenue Authority (“WRA”) or to the detention of persons by WRA in connection with such investigations;

(b)make provision permitting a person exercising a function conferred on WRA by the regulations to use reasonable force in the exercise of such a function;

(c)specify that where premises are searched by WRA in reliance on a warrant under section 8 of, or paragraph 12 of Schedule 1 to, this Act (as applied by regulations under paragraph (a)) persons found on the premises may be searched—

(i)in such cases and circumstances as are specified in the regulations, and

(ii)subject to any conditions specified in the regulations.

(2)Regulations under subsection (1) may—

(a)make provision that applies generally or only in specified cases,

(b)make different provision for different cases or circumstances, and

(c)may, in modifying a provision, in particular impose conditions on the exercise of a function.

(3)The power to make regulations under subsection (1) is exercisable by statutory instrument.

(4)A statutory instrument containing regulations under subsection (1) may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, the National Assembly for Wales.

(2)After section 67 of the Criminal Justice and Police Act 2001 (c. 16) (application of Part 2 to officers of Revenue in Customs) insert—

67AApplication to Welsh Revenue Authority

(1)The Welsh Ministers may by regulations—

(a)direct that any provision of this Part is to apply, subject to such modifications as the regulations may specify, to investigations of offences conducted by the Welsh Revenue Authority;

(b)make provision permitting a person exercising a function conferred on the Welsh Revenue Authority by the regulations to use reasonable force in the exercise of such a function.

(2)Regulations under subsection (1) may—

(a)make provision that applies generally or only in specified cases,

(b)make different provision for different cases or circumstances, and

(c)may, in modifying a provision, in particular impose conditions on the exercise of a function.

(3)The power to make regulations under subsection (1) is exercisable by statutory instrument.

(4)A statutory instrument containing regulations under subsection (1) may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, the National Assembly for Wales.

186Proceeds of crimeE+W

(1)The Proceeds of Crime Act 2002 (c. 29) is amended as follows.

(2)In section 72 (compensation), in subsection (9)(f), after “(c)” insert “ , (da) ”.

(3)In section 302 (compensation), after subsection (7A)(d) insert—

(da)in the case of an investigator who was exercising a function of the Welsh Revenue Authority, it is to be paid by the Welsh Revenue Authority,.

(4)In section 453 (references to financial investigators), after subsection (1) insert—

(1A)The Welsh Ministers may by order provide that a specified reference in this Act to an accredited financial investigator includes a reference to a person exercising a function of the Welsh Revenue Authority who falls within a specified description.

(5)In section 459 (orders and regulations)—

(a)in subsection (4), after paragraph (a) insert—

(aa)an order made by the Welsh Ministers under section 453(1A);, and

(b)after that subsection insert—

(4A)A statutory instrument containing an order under section 453(1A) is subject to annulment in pursuance of a resolution of the National Assembly for Wales.

187Regulation of investigatory powersE+W

(1)The Regulation of Investigatory Powers Act 2000 (c. 23) is amended as follows.

(2)In section 30 (persons entitled to grant authorisations for directed surveillance and covert human intelligence)—

(a)in subsection (6), after “prejudice to” insert “ subsection (6A) and ”, and

(b)after that subsection insert—

(6A)The power in subsection (1) to make an order under this section prescribing individuals as persons designated for the purposes of sections 28 and 29 is exercisable by the Welsh Ministers for the purposes of prescribing persons exercising Welsh Revenue Authority functions of such description or holding such offices, ranks or positions as may be prescribed.

(6B)Any such order made by the Welsh Ministers may—

(a)make different provision for different cases;

(b)contain such incidental, supplemental, consequential and transitional provision as the Welsh Ministers think fit.

(6C)The Welsh Ministers' power to make such an order is exercisable by statutory instrument.

(6D)A statutory instrument containing such an order is subject to annulment in pursuance of a resolution of the National Assembly for Wales.

(3)In Schedule 1 (relevant public authorities), after paragraph 16 insert—

The Welsh Revenue Authority

16AThe Welsh Revenue Authority.

PART 10 E+WFINAL PROVISIONS

188Power to make consequential etc. provisionE+W

(1)The Welsh Ministers may by regulations make such incidental, consequential or supplemental provision as they think appropriate for the purposes of, or in connection with, this Act.

(2)Regulations under this section may amend, revoke or repeal any enactment (including any provision of this Act).

189RegulationsE+W

(1)Any power to make regulations under this Act—

(a)is exercisable by statutory instrument, and

(b)includes power to make different provision for different purposes.

(2)A statutory instrument containing regulations under section 18(2), 156 or 172(7) (whether alone or with any other provision) may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, the National Assembly for Wales.

(3)Any other statutory instrument containing regulations under this Act is subject to annulment in pursuance of a resolution of the National Assembly for Wales.

190Issue of notices by WRAE+W

(1)This section applies where a provision of this Act, or of regulations made under it, authorises or requires WRA to issue a notice to a person (whether the expression “issue” or any other expression is used) (but see subsection (9)).

(2)The notice may be issued to the person—

(a)by being delivered personally to the person,

(b)by leaving it at the person's proper address,

(c)by being sent by post to the person's proper address, or

(d)where subsection (3) applies, by sending it electronically to an address provided for that purpose.

(3)This subsection applies where the person to whom the notice is to be issued has agreed in writing that it may be sent electronically.

(4)For the purposes of subsection (2)(a), a notice may be delivered personally to a body corporate by giving it to the secretary or clerk of that body.

(5)Where WRA issues a notice in the manner mentioned in subsection (2)(b), the notice is to be treated as having been received at the time it was left at the person's proper address unless the contrary is shown.

(6)For the purposes of subsection (2)(b) and (c), the proper address of a person is—

(a)in the case of a body corporate, the address of the registered or principal office of the body;

(b)in the case of a person acting in his or her capacity as a partner in a partnership, the address of the principal office of the partnership;

(c)in any other case, the last known address of the person.

(7)Where WRA issues a notice in the manner mentioned in subsection (2)(c) by sending it to an address in the United Kingdom, the notice is to be treated as having been received 48 hours after it is sent unless the contrary is shown.

(8)Where WRA issues a notice in the manner mentioned in subsection (2)(d), the notice is to be treated as having been received 48 hours after it is sent unless the contrary is shown.

(9)This section does not apply to any notice that WRA may—

(a)provide to a person under section 103(4) or 105(3), or

(b)give to the tribunal.

(10)In this section “notice” includes a copy of a notice.

191Giving notices and other documents to WRAE+W

(1)This section applies where a provision of this Act or of regulations made under it requires or permits a person to give a notice or other document to WRA (whether the expression “give” or any other expression is used) (but see subsection (4)).

(2)The document must—

(a)be in such form,

(b)contain such information, and

(c)be given in such manner,

as may be specified by WRA.

(3)But subsection (2) is subject to any different provision made in or under this Act.

(4)This section does not apply to any document given to WRA by the Welsh Ministers or the tribunal.

192InterpretationE+W

(1)For the purposes of this Act, an appeal or referral is finally determined when—

(a)it has been determined, and

(b)there is no further possibility of the determination being varied or set aside (disregarding any power to grant permission to appeal out of time).

(2)In this Act—

  • contract settlement” (“setliad contract”) means an agreement made in connection with any person's liability to make a payment to WRA under any enactment;

  • devolved tax” (“treth ddatganoledig”) has the meaning given by section 116A(4) of the Government of Wales Act 2006 (c. 32);

  • devolved taxpayer” (“trethdalwr datganoledig”) means a person liable to pay a devolved tax;

  • enactment” (“deddfiad”) means an enactment (whenever enacted or made) which is, or is contained in—

    (a)

    an Act of Parliament,

    (b)

    an Act or a Measure of the National Assembly for Wales, or

    (c)

    subordinate legislation (within the meaning of the Interpretation Act 1978 (c. 30)) made under—

    (i)

    an Act of Parliament, or

    (ii)

    an Act or a Measure of the National Assembly for Wales;

  • financial year” (“blwyddyn ariannol”) means—

    (a)

    the period beginning with the establishment of WRA and ending with 31 March in the following year, and

    (b)

    each subsequent period of a year ending with 31 March;

  • local authority” (“awdurdod lleol”) means—

    (a)

    a county council or county borough council in Wales,

    (b)

    a district council or county council in England, a London borough council, the Common Council of the City of London or the Council of the Isles of Scilly,

    (c)

    a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994 (c. 39), or

    (d)

    a district council in Northern Ireland;

  • notice” (“hysbysiad”) means notice in writing;

  • partnership” (“partneriaeth”) means—

    (a)

    a partnership within the Partnership Act 1890 (c. 39),

    (b)

    a limited partnership registered under the Limited Partnerships Act 1907 (c. 24), or

    (c)

    a firm or entity of a similar character formed under the law of a country or territory outside the United Kingdom;

  • tax period” (“cyfnod treth”) means a period in respect of which a devolved tax is charged;

  • tax return” (“ffurflen dreth”) means a return relating to a devolved tax;

  • the tribunal” (“y tribiwnlys”) means—

    (a)

    the First-tier Tribunal, or

    (b)

    where determined by or under Tribunal Procedure Rules, the Upper Tribunal.

193Index of defined expressionsE+W

The following Table lists expressions defined or otherwise explained in this Act.

TABLE 1

Expression Section
Appealable decision (“penderfyniad apeladwy”) section 172(2) and (3)
Business assets (“asedau busnes”) section 111
Business documents (“dogfennau busnes”) section 111
Business premises (“mangre busnes”) section 111
Carrying on a business (“rhedeg busnes”) section 85
Charity (“elusen”) section 85(3)
Closure notice (“hysbysiad cau”) section 50(1) (in relation to an enquiry into a tax return) and section 75(1) (in relation to an enquiry into a claim)
Contract settlement (“setliad contract”) section 192(2)
Debtor contact notice (“hysbysiad cyswllt dyledwr”) section 93(1)
Devolved tax (“treth ddatganoledig”) section 192(2)
Devolved taxpayer (“trethdalwr datganoledig”) section 192(2)
Elected executive member (“aelod gweithredol etholedig”) section 3(4)(c)
Enactment (“deddfiad”) section 192(2)
Executive member (“aelod gweithredol”) section 3(4)(b)
Filing date (“dyddiad ffeilio”) section 40
Financial year (“blwyddyn ariannol”) section 192(2)
Identification notice (“hysbysiad adnabod”) section 92(1)
Information notice (“hysbysiad gwybodaeth”) section 83
Late payment interest (“llog taliadau hwyr”) section 157(2)
Late payment interest rate (“cyfradd llog taliadau hwyr”) section 163(1)
Late payment interest start date (“dyddiad dechrau llog taliadau hwyr”) sections 157(3), 159(2) and 160(2)
Local authority (“awdurdod lleol”) section 192(2)
Non-executive member (“aelod anweithredol”) section 3(4)(a)
Notice (“hysbysiad”) section 192(2)
Notice of enquiry (“hysbysiad ymholiad”) section 43(1) (in relation to a tax return) and section 74(1) (in relation to a claim)
Notice of request (“hysbysiad am gais”) section 173(1)
Partnership (“partneriaeth”) section 192(2)
Penalty date (“dyddiad cosbi”) section 122(2)
Potential lost revenue (“refeniw posibl a gollir”) section 134
Premises (“mangre”) section 111
Protected taxpayer information (“gwybodaeth warchodedig am drethdalwr”) section 17(3) and (4)
Relevant official (“swyddog perthnasol”) section 17(2)
Repayment interest (“llog ad-daliadau”) section 161(3)
Repayment interest rate (“cyfradd llog ad-daliadau”) section 163(2)
Repayment interest start date (“dyddiad dechrau llog ad-daliadau”) section 161(4)
Settlement agreement (“cytundeb setlo”) section 184(1)
Tax period (“cyfnod treth”) section 192(2)
Tax position (“sefyllfa dreth”) section 84
Tax return (“ffurflen dreth”) section 192(2)
Taxpayer notice (“hysbysiad trethdalwr”) section 86(1)
Third party notice (“hysbysiad trydydd parti”) section 87(1)
The tribunal (“y tribiwnlys”) section 192(2)
Unidentified third party notice (“hysbysiad trydydd parti anhysbys”) section 89(1)
WRA (“ACC”) section 2(2)
WRA assessment (“asesiad ACC”) section 56
WRA determination (“dyfarniad ACC”) section 52(3)

194Coming into forceE+W

(1)The following provisions of this Act come into force on the day after the day on which this Act receives Royal Assent—

(a)Part 1;

(b)sections 37, 82, 117 and 171;

(c)this Part.

(2)The remaining provisions of this Act come into force on such day as the Welsh Ministers may appoint by order made by statutory instrument.

(3)An order under this section may appoint different days for different purposes.

195Short titleE+W

The short title of this Act is the Tax Collection and Management (Wales) Act 2016.