Source: http://www.legislation.gov.uk/anaw/2016/6/body
Timestamp: 2016-10-21 18:03:38
Document Index: 477243759

Matched Legal Cases: ['ART 1', 'art 2', 'art 3', 'art 4', 'art 5', 'art 6', 'art 7', 'art 8', 'art 9', 'art 10', 'ART 2', 'ART 3', 'ART 4', 'art 1', 'ART 5', 'ART 6', 'ART 7', 'ART 8', 'ART 9', 'art 2', 'ART 10']

Skip to main contentSkip to navigationlegislation.gov.ukThe National ArchivesHelpSite MapAccessibilityContact UsCymraegHomeAbout UsBrowse LegislationNew LegislationChanges To LegislationSearch LegislationSearch LegislationTitle: (or keywords in the title)Year:Number:Type:All Legislation (excluding draft)All Primary Legislation UK Public General Acts UK Local Acts Acts of the Scottish Parliament Acts of the National Assembly for Wales Measures of the National Assembly for Wales Church Measures Acts of the Northern Ireland Assembly Acts of the Old Scottish Parliament Acts of the English Parliament Acts of the Old Irish Parliament Acts of the Parliament of Great Britain Northern Ireland Orders in Council Measures of the Northern Ireland Assembly Acts of the Northern Ireland ParliamentAll Secondary Legislation UK Statutory Instruments Wales Statutory Instruments Scottish Statutory Instruments Northern Ireland Statutory Rules Church Instruments UK Ministerial Orders UK Statutory Rules and OrdersAll Draft Legislation UK Draft Statutory Instruments Scottish Draft Statutory Instruments Northern Ireland Draft Statutory RulesAll Impact Assessments UK Impact AssessmentsSearchAdvanced SearchTax Collection and Management (Wales) Act 2016You are here:2016 anaw 6Whole Act without SchedulesTable of ContentsContentExplanatory NotesMore ResourcesPrevious: IntroductionNextPlain ViewPrint OptionsWhat VersionLatest available (Revised)Original (As enacted) - EnglishOriginal (As enacted) - WelshAdvanced FeaturesShow Geographical Extent(e.g. England, Wales, Scotland, Northern Ireland)Show Timeline of ChangesOpening OptionsOpen whole ActMore ResourcesOriginal Print PDF - EnglishOriginal Print PDF - WelshOriginal Print PDF - Mixed LanguageView moreStatus:This version of this Act contains provisions that are prospective.StatusThe term provision is used to describe a definable element in a piece of legislation that has legislative effect – such as a Part, Chapter or section. A version of a provision is prospective either:where the provision (Part, Chapter or section) has never come into force or;where the text of the provision is subject to change, but no date has yet been appointed by the appropriate person or body for those changes to come into force.Commencement Orders listed in the ‘Changes to Legislation’ box as not yet applied may bring this prospective version into force.Changes to legislation:There are currently no known outstanding effects for the Tax Collection and Management (Wales) Act 2016.Changes to LegislationRevised legislation carried on this site may not be fully up to date. At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial team. Please see ‘Frequently Asked Questions’ for details regarding the timescales for which new effects are identified and recorded on this site. PART 1 E+WOVERVIEW1Overview of ActE+WThis 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.
Prospective PART 2 E+WTHE WELSH REVENUE AUTHORITYEstablishment and status of the Welsh Revenue AuthorityE+W2The Welsh Revenue AuthorityE+W(1)There is to be a body corporate to be known as the Welsh Revenue Authority or Awdurdod Cyllid Cymru.
MembershipE+W3MembershipE+W(1)The members of WRA are—
4Disqualification for appointment as non-executive memberE+WA person is disqualified from appointment as a non-executive member of WRA if the person is—
5Terms of non-executive membershipE+W(1)A non-executive member of WRA holds office as a member for such period and on such terms as are specified in the terms of the member's appointment (but subject to subsection (4) and section 7).
(2)The period of office specified in the terms of a non-executive member's appointment must not be more than 5 years.
(3)A non-executive member of WRA appointed as deputy chairperson holds office as deputy chairperson for such period and on such terms as are specified in the person's terms of appointment as deputy chairperson (but subject to subsection (4) and section 7).
6Appointment of elected executive memberE+W(1)WRA must conduct a ballot of its staff for the purpose of appointing a member of staff as an elected executive member of WRA.
(b)determine the terms of that person's appointment.
(3)An elected executive member of WRA holds office as a member for such period and on such terms as are specified in the terms of the member's appointment (but subject to subsection (4) and section 7).
7Removal of members etc.E+W(1)The Welsh Ministers may remove a person from office as a non-executive member of WRA by notice if—
(c)the Welsh Ministers consider that the person is unfit to be a member or is unable or unwilling to carry out the person's functions as a member.
(b)the non-executive members of WRA consider that the person is unfit to be a member or is unable or unwilling to carry out the person's functions as a member.
Committees and staffE+W8Committees and sub-committeesE+W(1)WRA may establish committees for any purpose relating to its functions.
9Chief executive and other staffE+W(1)There is to be a chief executive of WRA.
Procedure and validityE+W10ProcedureE+W(1)WRA must make rules to regulate its own procedure (including quorum) and that of any committee or sub-committee.
11Validity of proceedings and actsE+WThe validity of any proceedings or acts of WRA (or of any committee or sub-committee) is not affected by—
FunctionsE+W12Main functionsE+W(1)WRA's general function is the collection and management of devolved taxes.
13Internal authorisation to carry out functionsE+W(1)WRA may authorise the carrying out of any of its functions (to any extent) by—
(a)WRA's ability to exercise the function, or
(b)WRA's responsibility for the exercise of the function.
14Delegation of functionsE+W(1)WRA may delegate any of its functions to any person prescribed by regulations made by the Welsh Ministers.
15General directionsE+W(1)The Welsh Ministers may give to WRA directions of a general nature.
InformationE+W16Use of information by WRA and delegatesE+W(1)Information acquired—
17Confidentiality of protected taxpayer informationE+W(1)An individual who is or has been a relevant official must not disclose protected taxpayer information unless the disclosure is permitted by section 18.
(b)by which the affected person may be identified (whether by reason of the affected person's identity being specified in the information or being capable of being deduced from it).
18Permitted disclosuresE+W(1)A disclosure of protected taxpayer information is permitted by this section if—
19Declaration of confidentialityE+W(1)Every individual who is a relevant official must make a declaration acknowledging the obligation of confidentiality under section 17.
(a)as soon as reasonably practicable following the individual's appointment, and
20Offence of wrongful disclosure of protected taxpayer informationE+W(1)An individual who discloses information in contravention of section 17(1) commits an offence.
Court proceedings and evidenceE+W21Court proceedingsE+W(1)WRA may institute criminal and civil proceedings in England and Wales.
(2)An individual authorised to conduct criminal or civil proceedings in magistrates' courts in England and Wales—
22EvidenceE+W(1)A document that purports to have been issued or signed by or with the authority of WRA⁠—
(b)that a specified person was appointed as a member of WRA's staff on a specified date;
(i)a specified member of WRA's staff, or
(ii)a member of WRA's staff of a specified description,
MoneyE+W23FundingE+W(1)The Welsh Ministers must pay WRA such amounts as they consider appropriate in respect of the carrying out of WRA's functions.
24RewardsE+WWRA may pay a reward to a person in return for a service which relates to any of its functions.
25Payments of receipts into Welsh Consolidated FundE+W(1)WRA must pay amounts collected in the exercise of its functions into the Welsh Consolidated Fund.
Charter of standards and valuesE+W26Charter of standards and valuesE+W(1)WRA must prepare a Charter.
Corporate plans, annual reports, accounts etc.E+W27Corporate planE+W(1)WRA must, for each planning period, prepare a corporate plan and submit it for approval by the Welsh Ministers.
(a)WRA's main objectives for the planning period,
28Annual reportE+W(1)As soon as is reasonably practicable after the end of each financial year, WRA must—
29AccountsE+W(1)WRA must—
30Tax StatementE+W(1)WRA must prepare in respect of each financial year, in accordance with directions given by the Welsh Ministers, a statement of the amount of money collected by it during the financial year in the exercise of its functions (a “Tax Statement”).
31AuditE+W(1)WRA must submit—
32Examination into use of resourcesE+W(1)The Auditor General for Wales may carry out examinations into the economy, efficiency and effectiveness with which resources have been used in discharging WRA's functions.
33Accounting officerE+W(1)The chief executive of WRA is the accounting officer of WRA.
(a)responsibilities in relation to the signing of WRA's accounts and the Tax Statement;
Consequential amendmentsE+W34Welsh public recordsE+WIn section 148 of the Government of Wales Act 2006 (c. 32) (meaning of “Welsh public records”), in subsection (1), after paragraph (b) insert—
35Public Services OmbudsmanE+WIn Schedule 3 to the Public Services Ombudsman (Wales) Act 2005 (c. 10) (listed authorities), after the entry relating to the National Assembly for Wales Commission insert— “Taxation Welsh Revenue Authority”
36Auditor General for WalesE+WIn section 23 of the Public Audit (Wales) Act 2013 (anaw 3) (general provision relating to fees), in subsection (3), after paragraph (b) insert—
“(ba)an examination, certification or report under section 31 of the Tax Collection and Management (Wales) Act 2016 in respect of the Welsh Revenue Authority's Tax Statement;”.
PART 3 E+WTAX RETURNS, ENQUIRIES AND ASSESSMENTSCHAPTER 1E+WOVERVIEW37Overview of PartE+WThis Part is about the assessment of devolved taxes and includes provision about—
PART 4 E+WINVESTIGATORY POWERS OF WRACHAPTER 1E+WINTRODUCTORYOverviewE+W82Overview of PartE+WThis 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.
ProspectiveInterpretationE+W83Information noticesE+W(1)In this Act, “information notice” means—
(a)a taxpayer notice under section 86,
(b)a third party notice under section 87,
(c)an unidentified third party notice under section 89,
(d)an identification notice under section 92, or
(e)a debtor contact notice under section 93.
(2)An information notice may either specify or describe the information or documents to be provided or produced.
(3)If an information notice is issued with the approval of the tribunal, the notice must state that fact.
84Meaning of “tax position”E+W(1)In this Part, “tax position”, in relation to a person, means the person's position as regards any devolved tax, including the person's position as regards—
(a)past, present and future liability to pay any devolved tax,
(b)penalties, interest (including interest on penalties) and other amounts that have been paid, or are or may be payable, by or to the person in connection with any devolved tax, and
(c)claims or notices that have been or may be made or given in connection with the person's liability to pay any devolved tax,
and references to a person's position as regards a particular devolved tax (however expressed) are to be interpreted accordingly.
(2)References in this Part to the tax position of a person include references to the tax position of—
(a)an individual who has died, and
(b)a body corporate or unincorporated association that has ceased to exist.
(3)References in this Part to a person's tax position refer to the person's tax position at any time or in relation to any period, unless otherwise stated.
(4)References to checking a person's tax position include references to carrying out an investigation or making an enquiry of any kind.
85Meaning of “carrying on a business”E+W(1)In this Part, references to carrying on a business include—
(a)carrying on any activity for the purposes of generating income from land (wherever situated),
(b)carrying on a profession,
(c)the activities of a charity, and
(d)the activities of a local authority or any other public authority.
(2)The Welsh Ministers may by regulations provide that for the purposes of this Part—
(a)the carrying on of a specified activity, or
(b)the carrying on of any activity, or a specified activity, by a specified person,
is or is not to be treated as the carrying on of a business.
(3)In this Act, “charity” has the meaning given by Part 1 of Schedule 6 to the Finance Act 2010 (c. 13).
ProspectiveCHAPTER 2E+WPOWERS TO REQUIRE INFORMATION AND DOCUMENTS86Taxpayer noticesE+W(1)WRA may issue a notice (a “taxpayer notice”) requiring a person (“the taxpayer”) to provide information or produce a document if—
(a)WRA requires the information or document for the purpose of checking the taxpayer's tax position,
(b)it is reasonable to require the taxpayer to provide the information or produce the document, and
(c)nothing in sections 97 to 102 prevents WRA from requiring the taxpayer to provide the information or produce the document.
(2)But WRA may not issue a taxpayer notice without the approval of the tribunal.
87Third party noticesE+W(1)WRA may issue a notice (a “third party notice”) requiring a person to provide information or produce a document if—
(a)WRA requires the information or document for the purpose of checking the tax position of another person (“the taxpayer”) whose identity is known to WRA,
(b)it is reasonable to require the person to provide the information or produce the document, and
(c)nothing in sections 97 to 102 prevents WRA from requiring the person to provide the information or produce the document.
(2)But WRA may not issue a third party notice without—
(a)the agreement of the taxpayer, or
(b)the approval of the tribunal.
(3)The taxpayer to whom a third party notice relates must—
(a)be named in the notice, and
(b)be issued with a copy of the notice by WRA.
(4)But when it approves a third party notice, the tribunal may disapply one or both of the requirements of subsection (3) if it is satisfied that WRA has grounds for believing that naming the taxpayer or, as the case may be, issuing the taxpayer with a copy of the notice might seriously prejudice the assessment or collection of devolved tax.
88Tribunal approval of taxpayer notices and third party noticesE+W(1)WRA may apply to the tribunal for approval to issue a taxpayer notice or a third party notice to a person (“the recipient”) without notice of the application being sent to the recipient.
(2)Where notice of the application for approval is not sent to the recipient, the tribunal may approve the issuing of the taxpayer notice or third party notice only if it is satisfied—
(i)in the case of a taxpayer notice, the requirements of section 86(1), or
(ii)in the case of a third party notice, the requirements of section 87(1),
have been met, and
(b)that sending notice of the application for approval to the recipient might have prejudiced the assessment or collection of devolved tax.
(3)Where the recipient has been notified of the application for approval, the tribunal may approve the issuing of the taxpayer notice or third party notice only if—
(a)it is satisfied that—
have been met,
(b)the recipient has been told that the information or documents referred to in the taxpayer notice or third party notice are required and has been given a reasonable opportunity to make representations to WRA,
(c)the tribunal has been provided with a summary of any representations made, and
(d)in the case of a third party notice, the taxpayer has been provided with a summary of the reasons why WRA requires the information or documents.
(4)But the tribunal may disapply the requirements of paragraph (b) or (d) of subsection (3) to the extent that it is satisfied that taking the action specified in the paragraph might prejudice the assessment or collection of devolved tax.
(5)In approving the issuing of a taxpayer notice or third party notice, the tribunal may make such modifications to the notice as it thinks appropriate.
89Power to require information and documents about persons whose identity is not knownE+W(1)WRA may issue a notice (an “unidentified third party notice”) requiring a person (“the recipient”) to provide information or produce a document if—
(a)WRA requires the information or document for the purpose of checking the tax position of—
(i)a person whose identity is not known to WRA, or
(ii)a class of persons whose individual identities are not known to WRA,
(b)it is reasonable to require the recipient to provide the information or produce the document,
(c)nothing in sections 97 to 102 prevents WRA from requiring the recipient to provide the information or produce the document, and
(d)the tribunal has approved the issuing of the notice.
(2)An application for approval may be made without notice.
(3)The tribunal may approve the issuing of the unidentified third party notice only if it is satisfied that—
(a)the requirements of subsection (1)(a) to (c) have been met,
(b)the information or document to which the notice relates is not readily available to WRA from another source,
(c)there are grounds for believing that the person or any of the class of persons to whom the notice relates may have failed or may fail to comply with any provision of the law relating to a devolved tax, and
(d)any such failure is likely to have led or to lead to serious prejudice to the assessment or collection of devolved tax.
(4)In approving the issuing of an unidentified third party notice, the tribunal may make such modifications to the notice as it thinks appropriate.
90Requiring information and documents in relation to a group of undertakingsE+W(1)This section applies where an undertaking is a parent undertaking in relation to another undertaking (a “subsidiary undertaking”).
(2)Where a third party notice is issued to any person for the purpose of checking the tax position of a parent undertaking and any of its subsidiary undertakings—
(a)the references in sections 87(2)(a), (3) and (4) and 88(3)(d) to the taxpayer have effect as if they were references to the parent undertaking, and
(b)section 87(3) is to be treated as also requiring the notice to state its purpose.
(3)Where a third party notice is issued to a parent undertaking for the purpose of checking the tax position of more than one subsidiary undertaking—
(a)the notice must state its purpose,
(b)sections 87(2)(a) and (3) and 88(3)(d) do not apply, and
(c)section 100 (taxpayer notices following a tax return) applies as if the third party notice were a taxpayer notice issued to each subsidiary undertaking (or, if the third party notice names the subsidiary undertakings to which it relates, to each of those undertakings).
(4)In this section, “parent undertaking”, “subsidiary undertaking” and “undertaking” have the meanings given in section 1162 of, and Schedule 7 to, the Companies Act 2006 (c. 46).
91Requiring information and documents in relation to a partnershipE+W(1)This section applies where a business is carried on by two or more persons in partnership.
(2)Where a third party notice is issued to someone other than one of the partners for the purpose of checking the tax position of more than one of the partners (in their capacity as such)—
(a)section 87(3) is to be treated as requiring WRA to—
(i)state that purpose,
(ii)name the taxpayer by giving a name by which the partnership is known or under which it is registered for any purpose, and
(iii)issue a copy of the notice to at least one of the partners,
(b)section 87(4) is to be treated as permitting the tribunal to disapply any or all of the requirements mentioned in paragraph (a) of this subsection, and
(c)the references to the taxpayer in sections 87(2)(a) and 88(3)(d) have effect as if they were references to at least one of the partners.
92Power to obtain information to enable a person's identity to be ascertainedE+W(1)WRA may issue a notice (an “identification notice”) requiring a person to provide relevant information about another person (“the taxpayer”) only if the tribunal has approved the issuing of the notice.
(2) An application for approval may be made without notice.
(3)The tribunal may approve the issuing of the identification notice only if it is satisfied that conditions 1 to 6 are met.
(4)Condition 1 is that WRA requires the information for the purpose of checking the tax position of the taxpayer.
(5)Condition 2 is that it is reasonable to require the person to provide the relevant information.
(6)Condition 3 is that WRA—
(a)does not know the taxpayer's identity, but
(b)holds information from which the taxpayer's identity can be ascertained.
(7)Condition 4 is that WRA has grounds for believing—
(a)that the person will be able to ascertain the identity of the taxpayer from the information held by WRA, and
(b)that the person obtained relevant information about the taxpayer in the course of carrying on a business.
(8)Condition 5 is that the taxpayer's identity cannot readily be ascertained by other means from the information held by WRA.
(9)Condition 6 is that nothing in sections 97 to 102 prevents WRA from requiring the person to provide the relevant information.
(10)In this section, “relevant information” means all or any of the following—
(b)last known address, and
(c)date of birth (in the case of an individual).
(11)This section also applies for the purpose of checking the tax position of a class of persons (and references to the taxpayer are to be read accordingly).
93Power to obtain contact details for debtorsE+W(1)WRA may issue a notice (a “debtor contact notice”) requiring a person (“the third party”) to provide contact details for another person (“the debtor”) only if conditions 1 to 5 are met.
(2)Condition 1 is that an amount by way of—
(a)devolved tax,
(b)interest on devolved tax,
(c)a penalty relating to devolved tax, or
(d)interest on a penalty relating to devolved tax,
is payable by the debtor to WRA under an enactment or contract settlement.
(3)Condition 2 is that WRA requires contact details for the debtor for the purpose of collecting that amount.
(4)Condition 3 is that it is reasonable to require the third party to provide the details.
(5)Condition 4 is that—
(a)the third party is a body corporate or unincorporated association, or
(b)WRA has grounds for believing that the third party obtained the details in the course of carrying on a business.
(6)Condition 5 is that nothing in sections 97 to 102 prevents WRA from requiring the third party to provide the details.
(7)But WRA may not issue a debtor contact notice if—
(a)the third party is a charity and obtained the details in the course of providing services free of charge, or
(b)the third party is not a charity but obtained the details in the course of providing services on behalf of a charity that are free of charge to the recipient of the service.
(8)In this section, “contact details”, in relation to a person, means the person's address and any other information about how the person may be contacted.
94Time limit for issuing a tribunal approved information noticeE+WWhere the tribunal has approved the issuing of an information notice WRA must issue the notice—
95Complying with an information noticeE+W(1)A person to whom an information notice is issued must comply with the notice—
(a)within the period specified in the notice, and
(b)in such manner as is specified or described in the notice.
(2)But if the person has requested a review of, or made an appeal against, the notice or a requirement in it, subsection (1)(a) ceases to apply to the notice or the requirement.
(3)Where an information notice requires a person to produce a document, it must be produced—
(a)at a place agreed to by that person and WRA, or
(b)at a place which WRA may specify.
(4)WRA must not specify for the purpose of subsection (3)(b) a place that is used solely as a dwelling.
(5)The production of a document in compliance with an information notice is not to be regarded as breaking any lien claimed on the document.
96Producing copies of documentsE+W(1)Unless an information notice requires a person to produce an original document, the person may comply with the notice by producing a copy of the document.
(2)Subsection (1) is subject to any conditions or exceptions specified in regulations made by the Welsh Ministers.
(3)Where a person complies with a notice by producing a copy of the document, WRA may subsequently require that person to produce the original document—
(a)within such period, and
(b)in such manner,
as WRA may specify.
(4)But a person is not required to produce the original document if a request is made by WRA more than 6 months after the day on which the copy of the document was produced.
ProspectiveCHAPTER 3E+WRESTRICTIONS ON POWERS IN CHAPTER 297Information notices: general restrictionsE+W(1)An information notice requires a person to produce a document only if it is in the person's possession or power.
(2)An information notice may not require a person to produce a document if the whole of the document originates more than 6 years before the day on which the notice is issued, unless the notice is issued with the approval of the tribunal.
(3)An information notice issued for the purpose of checking the tax position of a person who has died may not be issued more than 4 years after the person's death.
(4)An information notice may not require a person to provide information or produce a document (or any part of a document) that relates to the conduct of a pending review or appeal relating to any tax (whether or not a devolved tax).
98Protection for journalistic materialE+W(1)An information notice may not require a person to provide or produce journalistic material.
(2)“Journalistic material” means information or a document which is—
(a)in the possession of someone who created or acquired it for the purposes of journalism, or
(b)in the possession of someone who received it from another person who intended the recipient to use it for the purposes of journalism.
99Protection for personal recordsE+W(1)An information notice may not require a person to provide or produce personal records or information contained in personal records.
(2)But an information notice may require a person—
(a)to produce a document (or a copy of a document) that is a personal record, omitting the information which (either alone or with other information) makes the document a personal record;
(b)to provide information contained in a document which is a personal record, other than the information which (either alone or with other information) makes the document a personal record.
(3)“Personal records” means documentary and other records concerning an individual (“P”) (whether living or dead) who can be identified from those records and relating to—
(a)P's physical or mental health,
(b)spiritual counselling or assistance given or to be given to P, or
(c)counselling or assistance given or to be given to P in relation to P's personal welfare by a person who—
(i)by reason of an office or occupation has responsibilities for P's personal welfare, or
(ii)by reason of an order of a court has responsibilities for P's supervision.
100Taxpayer notices following a tax returnE+W(1)Where a person has made a tax return for a tax period, a taxpayer notice may not be issued for the purpose of checking that person's tax position for that period.
(2)Where a person has made a tax return in relation to a transaction, a taxpayer notice may not be issued for the purpose of checking a person's tax position in relation to that transaction.
(3)Subsections (1) and (2) do not apply where (or to the extent that) either condition 1 or 2 is met.
(4)Condition 1 is that a notice of enquiry has been issued in respect of—
(a)the tax return, or
(b)a claim (or an amendment of a claim) made by the person in relation to the tax period or the transaction to which the return relates,
and the enquiry has not been completed.
(5)Condition 2 is that, as regards the person, WRA has reason to suspect that—
(a)an amount that ought to have been assessed to a devolved tax for the tax period or in relation to the transaction may not have been assessed,
(b)an assessment to a devolved tax for the tax period or in relation to the transaction may be or have become insufficient, or
(c)relief from a devolved tax given or claimed for the tax period or in relation to the transaction may be or have become excessive.
(6)Where any partner in a partnership has made a tax return, this section has effect as if that return had been made by each of the partners.
(7)References in this section to a person who has made a tax return refer only to that person in the capacity in which the return was made.
101Protection for privileged communications between legal advisers and clientsE+W(1)An information notice may not require a person—
(2)Information or a document is privileged if a claim for legal professional privilege could be maintained in respect of it in legal proceedings.
(3)The Welsh Ministers may by regulations make provision for the resolution by the tribunal of any dispute as to whether any information or document is privileged.
(4)The regulations may, in particular, make provision for the custody of a document while its status is being determined.
102Protection for tax advisers and auditorsE+W(1)An information notice may not require a tax adviser—
(a)to provide information about a relevant communication, or
(b)to produce any part of a document which is the tax adviser's property and consists of a relevant communication.
“relevant communication” (“gohebiaeth berthnasol”) means a communication between—
(a)a tax adviser and a person in relation to whose tax affairs the tax adviser has been appointed, or
(b)the tax adviser of a person and any other tax adviser of that person,
the purpose of which is the giving or obtaining of advice about the person's tax affairs;
“tax adviser” (“cynghorwr treth”) means a person appointed to give advice about the tax affairs of another person (whether appointed directly by that person or by another tax adviser of that person).
(3)An information notice may not require a person who has been appointed as an auditor for the purpose of an enactment—
(a)to provide information held in connection with the performance of the person's functions under that enactment, or
(b)to produce a document which is that person's property and which was created by that person or on that person's behalf for or in connection with the performance of those functions.
(4)Subsections (1) and (3) do not have effect in relation to—
(a)information explaining any information or document which the person to whom the notice is issued has, as tax accountant, assisted any client in preparing for, or delivering to, WRA, or
(b)a document which contains such information.
(5)In the case of an unidentified third party notice, subsections (1) and (3) do not have effect in relation to—
(a)information giving the identity or address of a person to whom the notice relates or of a person who has acted on behalf of such a person, or
(6)Subsections (1) and (3) have effect despite subsections (4) and (5) if the information in question has already been provided, or a document containing the information has already been produced, to WRA.
(7)Where subsection (1) or (3) does not have effect in relation to a document by virtue of subsection (4) or (5), an information notice that requires the document to be produced has effect as if it requires that part or those parts of the document containing the information mentioned in subsection (4) or (5) to be produced.
(8)In subsection (3), “enactment” also includes an enactment (whenever enacted or made) which is, or is contained in—
(b)Northern Ireland legislation (within the meaning of the Interpretation Act 1978 (c. 30)),
(c)a Scottish instrument (within the meaning of the Interpretation and Legislative Reform (Scotland) Act 2010 (asp 10)), or
(d)a statutory instrument (within the meaning of the Interpretation Act (Northern Ireland) 1954 (c. 33)).
ProspectiveCHAPTER 4E+WINSPECTIONS OF PREMISES AND OTHER PROPERTY103Power 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—
(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
(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—
(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—
(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.
(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.
(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.
(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—
(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+WIf 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—
(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—
109Power to mark assets and to record informationE+WThe 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+WWRA 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+WIn 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.
ProspectiveCHAPTER 5E+WFURTHER INVESTIGATORY POWERS112Power 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—
(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—
(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.
ProspectiveCHAPTER 6E+WOFFENCES RELATING TO INFORMATION NOTICES114Offence 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—
ProspectiveCHAPTER 7E+WTRIBUNAL APPROVALS116No 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+WPENALTIESCHAPTER 1E+WOVERVIEW117Overview 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.
ProspectiveCHAPTER 2E+WPENALTIES FOR FAILURE TO MAKE RETURNS OR PAY TAXPenalty for failure to make tax returnE+W118Penalty for failure to make tax return on or before filing dateE+WA 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
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
(3)In any case not falling within subsection (2), the penalty is the greater of—
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)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
(5)“Quality”, in relation to disclosure, includes timing, nature and extent.
Penalty for failure to pay taxE+W122Penalty for failure to pay taxE+W(1)A person is liable to a penalty if the person fails to pay, on or before the penalty date, an amount of devolved tax which is payable by that person.
(2)The “penalty date”, in relation to an amount of devolved tax which is payable, is the date specified in an enactment as the date on or before which the amount must be paid.
(3)The penalty under this section is the percentage of the amount of unpaid devolved tax which is specified by an enactment as the amount of the penalty in the relevant circumstances.
123Suspension of penalty for failure to pay tax during currency of agreement for deferred paymentE+W(1)This section applies if—
(a)a person by whom an amount of devolved tax is payable has made a request to WRA, on or before the penalty date, to defer payment of the amount, and
(b)WRA has agreed, on or before that date, that payment of the amount may be deferred for a period (“the deferral period”).
(2)If the person would (apart from this subsection) become liable, between the day on which the person makes the request and the end of the deferral period, to a penalty for failing to pay the amount, the person is not liable to that penalty.
(a)the person breaks the agreement, and
(b)WRA issues a notice to the person specifying any penalty to which the person would be liable apart from subsection (2),
the person becomes liable to that penalty on the day on which the notice is issued.
(4)A person breaks an agreement if—
(a)the person fails to pay the amount in question when the deferral period ends, or
(b)the deferral is subject to a condition (including a condition that part of the amount be paid during the deferral period) and the person fails to comply with it.
(5)If the agreement mentioned in subsection (1) is varied at any time by a further agreement between the person and WRA, this section applies from that time to the agreement as varied.
Penalties under Chapter 2: generalE+W124Interaction 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—
(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—
(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.
(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—
(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.
(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.
(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.
(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.
ProspectiveCHAPTER 3E+WPENALTIES FOR INACCURACIESPenalties for inaccuracies in documentsE+W129Penalty 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—
(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.
(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.
(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
(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,
(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,
(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.
Penalty for failure to notify under-assessment etc.E+W133Penalty 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.
(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+W134Meaning of “potential lost revenue”E+WIn 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—
is the additional amount payable in respect of a devolved tax 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, and
(b)an amount which would have been repayable by WRA 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.
(a)“understatement” means an inaccuracy that meets condition 1 in section 129, and
(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
(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
(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+W139Reduction 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.
(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.
(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—
(iii)the under-assessment,
is fully corrected.
(4)In reducing a penalty under this section, WRA may take account of—
(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
(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.
(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—
(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—
(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—
(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—
(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+W142Interpretation of Chapter 3E+WIn 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.
ProspectiveCHAPTER 4E+WPENALTIES RELATING TO RECORD-KEEPING AND REIMBURSEMENT ARRANGEMENTSPenalty for failure to keep and preserve records in connection with tax returns or claimsE+W143Penalty 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.
(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—
(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.
ProspectiveCHAPTER 5E+WPENALTIES RELATING TO INVESTIGATIONSPenalties for failure to comply or obstructionE+W146Penalty for failure to comply with information notice or obstructionE+W(1)This section applies to a person who—
(a)fails to comply with an information notice,
(b)deliberately obstructs WRA in the course of an inspection, or in the exercise of a power, that has been approved by the tribunal under section 108,
(c)deliberately obstructs WRA in the exercise of its power under section 113(3), or
(d)fails to comply within a reasonable time with a requirement under section 113(5).
(3)The reference to a person who fails to comply with an information notice includes a person who conceals, destroys or otherwise disposes of (or arranges for the concealment, destruction or disposal of) a document in breach of section 114 or 115.
147Daily default penalty for failure to comply with information notice or obstructionE+W(1)This section applies if the failure or obstruction mentioned in section 146(1) continues after the day on which a penalty notice is issued under section 153(1)(b) in respect of the failure or obstruction.
(2)But this section does not apply if—
(a)the failure is in respect of a debtor contact notice, or
(b)a decision relating to the penalty under section 146 in respect of the failure or obstruction is the subject of—
(i)a review for which notice of the conclusions has not yet been issued, or
(ii)an appeal which has not yet been finally determined or withdrawn.
(3)The person is liable to a further penalty or penalties not exceeding £60 for each day on which the failure or obstruction continues.
148Effect of extension of time limit for complianceE+WLiability to a penalty under section 146 or 147 does not arise in respect of a failure by a person to do anything required to be done within a limited period of time if the person did it within such further time (if any) as WRA may have allowed.
149Reasonable excuse for failure to comply or obstructionE+W(1)Liability to a penalty under section 146 or 147 does not arise if the person satisfies WRA or (on appeal) the tribunal that there is a reasonable excuse for the failure or the obstruction of WRA.
(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 or obstruction;
Further penalties for continuing failure to comply or obstructionE+W150Increased daily default penalty for failure to comply with information noticeE+W(1)This section applies if—
(a)a penalty under section 147 is assessed under section 153 in respect of a person's failure to comply with an unidentified third party notice,
151Tax-related penalty for failure to comply with information notice or obstructionE+W(1)This section applies where—
(a)a person becomes liable to a penalty under section 146,
(b)the failure or obstruction continues after the day on which a penalty notice is issued under section 153(1)(b) in respect of the penalty,
(c)WRA has reason to believe that, as a result of the failure or obstruction, the amount of devolved tax that the person has paid, or is likely to pay, is significantly less than it would otherwise have been,
(d)before the end of the period of 12 months beginning with the relevant date, WRA makes an application to the Upper Tribunal for an additional penalty to be imposed on the person (see subsection (6)) and gives notice of the application to the person, and
(2)The person is liable to a penalty of an amount determined by the Upper Tribunal.
(3)In determining the amount, the Upper Tribunal must have regard to the amount of devolved tax which has not been, or is not likely to be, paid by the person.
(4)Any penalty under this section is in addition to the penalty or penalties under section 146 or 147.
(5)In subsection (1)(d), the “relevant date” means—
(i)the day on which the person became liable to the penalty under section 146,
(ii)if no appeal against the information notice is made, the end of the period in which such an appeal could have been made, and
(iii)if such an appeal is made, the day on which the appeal is finally determined or withdrawn, and
(b)in any other case, the day on which the person became liable to the penalty under section 146.
(6)WRA may not make an application of the kind mentioned in subsection (1)(d) if a decision relating to a penalty under section 146, 147 or 150 in respect of the failure or obstruction is the subject of—
Penalty for inaccurate information or documentsE+W152Penalty for inaccurate information or documentsE+W(1)This section applies if—
(a)a person provides inaccurate information, or produces a document that contains an inaccuracy, in complying with an information notice other than a debtor contact notice, and
(b)condition 1, 2 or 3 is met.
(2)Condition 1 is that the inaccuracy is—
(a)deliberate, or
(b)due to a failure by the person to take reasonable care.
(3)Condition 2 is that the person knows of the inaccuracy at the time the information is provided or the document is produced but does not inform WRA at that time.
(4)Condition 3 is that the person—
(b)fails to take reasonable steps to inform WRA.
(5)The person is liable to a penalty not exceeding £3,000.
(6)Where the information or document contains more than one inaccuracy in respect of which condition 1, 2 or 3 is met, a penalty is payable for each such inaccuracy.
Penalties under Chapter 5: generalE+W153Assessment of penalties under Chapter 5E+W(1)Where a person becomes liable for a penalty under this Chapter, WRA must—
(2)An assessment of a penalty under section 146 or 147 must be made within the period of 12 months beginning with the day on which the person became liable to the penalty.
(3)But in a case involving an information notice against which a person may appeal, an assessment of a penalty under section 146 or 147 must be made within the period of 12 months beginning with the latest of the following—
(a)the day on which the person became liable to the penalty,
(b)if no appeal against the notice is made, the end of the period in which such an appeal could have been made, and
(c)if such an appeal is made, the day on which the appeal is finally determined or withdrawn.
(4)An assessment of penalties under section 150 must be made—
(a)at the end of the period of 7 days beginning with the first applicable day, and
(b)at the end of each subsequent period of 7 days that includes an applicable day.
(5)An assessment of a penalty under section 151 must be made within the period of 12 months beginning with the day on which the Upper Tribunal decided that it was appropriate for the penalty to be imposed.
(6)An assessment of a penalty under section 152 must be made—
(a)within the period of 12 months beginning with the day on which the inaccuracy first came to the attention of WRA, and
(b)within the period of 6 years beginning with the day on which the person became liable to the penalty.
ProspectiveCHAPTER 6E+WPAYMENT OF PENALTIES154Payment of penaltiesE+WA penalty under this Part must be paid before the end of the period of 30 days beginning with the day on which notice of the penalty was issued (but see section 182).
ProspectiveCHAPTER 7E+WSUPPLEMENTARY155Double jeopardyE+WA person is not liable to a penalty under this Act in respect of anything if the person has been convicted of an offence in relation to it.
156Power to make regulations about penaltiesE+W(1)The Welsh Ministers may by regulations make provision (or further provision) about—
(a)the amounts of penalties under this Part;
(b)the procedure for assessing penalties under this Part.
(2)Regulations under this section may modify any enactment (including this Act).
(3)Regulations under this section may not apply—
(a)to a failure beginning before the day on which the regulations come into force, or
(b)to an inaccuracy in any information or document provided to WRA before that day.
Prospective PART 6 E+WINTERESTCHAPTER 1E+WINTEREST ON AMOUNTS PAYABLE TO WRALate payment interestE+W157Late payment interest on amounts payable to WRAE+W(1)This section applies to—
(a)any amount of devolved tax, and
(b)any amount of penalty relating to devolved tax,
that is payable by a person to WRA.
(2)If an amount to which this section applies is not paid before the late payment interest start date, the amount carries interest (referred to in this Part as “late payment interest”) at the late payment interest rate for the period—
(a)beginning with the late payment interest start date, and
(b)ending with the date of payment.
(3)The late payment interest start date for the amount is the date following that on which the amount becomes payable, subject to sections 159 and 160.
(4)Subsection (2)(a) applies even if the late interest payment start date is a non-business day within the meaning of section 92 of the Bills of Exchange Act 1882 (c. 61).
(5)In this section, “late payment interest rate” has the meaning given by section 163(1).
158Late payment interest: supplementaryE+W(1)Late payment interest is not payable on late payment interest.
(2)The date of payment, in relation to an amount to which section 157 applies, includes the date on which it is set off against an amount payable by WRA.
Late payment interest start date: special rulesE+W159Late payment interest start date: amendments to assessments etc.E+W(1)This section applies to an amount that is payable as a result of—
160Late payment interest start date: death of taxpayerE+W(1)This section applies if—
(b)the executor or administrator is unable to pay the amount before obtaining probate or letters of administration or another document having equivalent effect under the law of a country or territory other than England and Wales in relation to the deceased person's estate.
(b)the day after the end of the period of 30 days beginning with the grant of probate or letters of administration or another document having equivalent effect under the law of a country or territory other than England and Wales in relation to the deceased person's estate.
CHAPTER 2E+WINTEREST ON AMOUNTS PAYABLE BY WRARepayment interestE+W161Repayment interest on amounts payable by WRAE+W(1)This section applies to any relevant amount paid by a person to WRA that is repaid by WRA to that person or to another person.
(2)“Relevant amount” means an amount paid in connection with any liability (including any purported or anticipated liability) to pay to WRA—
(a)an amount of devolved tax, or
(b)an amount of penalty relating to devolved tax.
(3)If an amount to which this section applies is not repaid before the repayment interest start date, the amount carries interest (referred to in this Part as “repayment interest”) at the repayment interest rate for the period—
(a)beginning with the repayment interest start date, and
(b)ending with the date of repayment.
(4)The repayment interest start date for the relevant amount is the later of—
(a)the day on which the relevant amount was paid to WRA, and
(b)the day on which the amount mentioned in subsection (2)(a) or (b), in connection with which the relevant amount was paid, became payable to WRA.
(5)Subsection (3)(a) applies even if the repayment interest start date is a non-business day within the meaning of section 92 of the Bills of Exchange Act 1882 (c. 61).
(6)In this section, “repayment interest rate” has the meaning given by section 163(2).
162Repayment interest: supplementaryE+W(1)Repayment interest is not payable on an amount payable in consequence of an order or judgment of a court having power to allow interest on the amount.
(2)Repayment interest is not payable on repayment interest.
(3)The date of repayment, in relation to an amount to which section 161 applies, includes the date on which it is set off against an amount owed to WRA.
CHAPTER 3E+WRATES OF INTEREST163Rates of late payment interest and repayment interestE+W(1)The late payment interest rate is the rate provided for in regulations made by the Welsh Ministers.
(2)The repayment interest rate is the rate provided for in regulations made by the Welsh Ministers.
(3)Regulations under subsection (1) or (2)—
(b)may either themselves specify a rate of interest or make provision for a rate to be determined (and to change from time to time) by reference to a rate or an average of rates referred to in regulations;
(c)may provide for rates to be reduced below, or increased above, what they would otherwise be by reference to specified amounts or specified formulae;
(d)may provide for rates arrived at by reference to averages to be rounded up or down;
(e)may provide for circumstances in which alteration of a rate of interest is or is not to take place;
(f)may provide that alterations of rates are to have effect for periods beginning on or after a day determined in accordance with the regulations in relation to interest running from before that day as well as from or from after that day.
Prospective PART 7 E+WPAYMENT AND ENFORCEMENTPaymentE+W164Meaning of “relevant amount”E+WIn this Part, “relevant amount” means—
(a)devolved tax;
(b)interest on devolved tax;
(c)a penalty relating to devolved tax;
(d)interest on a penalty relating to devolved tax.
165Relevant amounts payable to WRAE+WAny relevant amount that becomes payable (whether under an enactment or contract settlement) is payable to WRA.
166Receipts for paymentE+WWhen a relevant amount is paid to WRA, WRA must give a receipt if requested to do so.
167Fees for paymentE+W(1)The Welsh Ministers may by regulations provide that a person who pays a relevant amount to WRA using a method of payment prescribed by the regulations must also pay a fee prescribed by, or determined in accordance with, the regulations.
(2)Regulations under this section may make provision about the time and manner in which the fee must be paid.
Certification of debtE+W168Certificates of debtE+W(1)A certificate of WRA that a relevant amount has not been paid to WRA is sufficient evidence that the amount is unpaid unless the contrary is proved.
(2)A document purporting to be such a certificate is to be treated as if it were such a certificate unless the contrary is proved.
RecoveryE+W169Proceedings in magistrates' courtE+W(1)Where a relevant amount is payable by a person and it does not exceed £2,000, it is recoverable summarily as a civil debt.
(2)All or any of the amounts recoverable under this section that are payable by any one person may be included in the same complaint, summons or other document required to be laid before or issued by a justice of the peace.
(3)Each such document is to be treated, in respect of each amount, as a separate document and its invalidity as respects one amount does not affect its validity in respect of any other amount.
(4)Where a relevant amount consists of devolved tax or a penalty, proceedings may be brought under this section within the period of 12 months beginning with the day following that on or before which the devolved tax or penalty was required to be paid.
(5)Where a relevant amount consists of interest on devolved tax or on a penalty, proceedings may be brought under this section within the period of 12 months beginning with the day following that on or before which the devolved tax or penalty was required to be paid.
(6)The Welsh Ministers may by regulations increase the amount specified in subsection (1).
170Enforcement by taking control of goodsE+W(1)If a person does not pay WRA a relevant amount which is payable by the person, WRA may use the procedure in Schedule 12 to the Tribunals, Courts and Enforcement Act 2007 (c. 15) (taking control of goods) to recover that amount.
(2)In section 63(3) of that Act (enforcement agents), after paragraph (b) insert—
“(ba)a person authorised to use the procedure in Schedule 12 by the Welsh Revenue Authority (or by a person to whom the Welsh Revenue Authority has delegated the function of authorising the use of the procedure);”.
PART 8 E+WREVIEWS AND APPEALSCHAPTER 1E+WINTRODUCTORYOverviewE+W171Overview 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.
ProspectiveAppealable decisionsE+W172Appealable decisionsE+W(1)A person to whom an appealable decision applies—
(a)may request a review of the decision (subject to subsection (4)), and
(b)may appeal against the decision,
in accordance with the following provisions of this Part.
(2) The following decisions by WRA are appealable decisions—
(a)a decision which affects whether a person is chargeable to a devolved tax;
(b)a decision which affects the amount of a devolved tax to which a person is chargeable;
(c)a decision which affects the day by which an amount of a devolved tax must be paid;
(d)a decision about a penalty relating to a devolved tax;
(e)a decision to issue an information notice or to include a particular requirement in such a notice.
(3)But the following decisions are not appealable decisions—
(a)a decision to issue a notice of enquiry under section 43 or 74;
(b)a decision to issue—
(i)a taxpayer notice, or
(ii)a third party notice to which section 90(3) applies;
(c)a decision to include a particular requirement in—
(ii)a third party notice to which section 90(3) applies.
(4)Where the tribunal has approved the issuing of an information notice, a person may not request a review of WRA's decision to issue the notice.
(5)Where a review may be requested, or an appeal made, in respect of a decision to issue an information notice or include a requirement in such a notice, it may be requested or made only on the following grounds—
(a)that it is unreasonable to require the person to whom the notice was issued to comply with the notice or requirement;
(b)that a provision of sections 97 to 102 prevents the notice from requiring the person to provide the information or produce the document;
(c)in the case of an identification notice issued under section 92 or a debtor contact notice issued under section 93, that condition 4 of that section has not been met.
(6)In the case of a decision to issue an information notice or to include a particular requirement in such a notice, the person to whom the decision applies for the purposes of subsection (1) is the person to whom the notice was issued.
(7)The Welsh Ministers may by regulations—
(a)modify this section to—
(i)add a decision to subsection (2) or (3);
(ii)vary the description of a decision in either of those subsections;
(iii)remove a decision from either of those subsections;
(b)amend this Part in order to make provision about the grounds on which a review may be requested, or an appeal made, in respect of an appealable decision.
ProspectiveCHAPTER 2E+WREVIEWS173Requesting 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.
(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
(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.
ProspectiveCHAPTER 3E+WAPPEALS178Making 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.
(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
(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
(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—
ProspectiveCHAPTER 4E+WMISCELLANEOUS AND SUPPLEMENTARYConsequences of reviews and appealsE+W182Payment of penalties in the event of a review or appealE+W(1)This section applies to a decision relating to a penalty to which a person may be liable.
(2)Where WRA carries out a review in respect of the decision, section 154 does not apply to any amount of penalty that is disputed (a “disputed amount”).
(3)Where the review concludes that a disputed amount is payable, the person must pay that amount before the end of the period of 30 days beginning with the day on which notice is issued to the person under section 176(5) or (7) in relation to the review; but this is subject to subsection (4).
(4)Where the person makes an appeal in respect of the decision—
(a)section 154 does not apply to any disputed amount, and
(b)subsection (3) does not apply.
(5)Where the appeal is withdrawn, the person must pay—
(a)any disputed amount, if the decision has not been reviewed, or
(b)if the decision has been reviewed, any disputed amount that the review has concluded to be payable,
before the end of the period of 30 days beginning with the day of withdrawal.
(6)Where it is finally determined, as a result of the appeal, that a disputed amount is payable, the person must pay that amount before the end of the period of 30 days beginning with the day on which the appeal is finally determined.
183Disposal of reviews and appeals in respect of information noticesE+W(1)Where the conclusions of a review under section 176 affirm or vary a decision to issue an information notice or a requirement in such a notice, the person to whom the notice was issued must comply with the notice or requirement (as affirmed or varied) within such period as WRA may specify.
(2)Where the tribunal affirms or varies a decision to issue an information notice or include a requirement in such a notice, the person to whom the notice was issued must comply with the notice or requirement (as affirmed or varied)—
(a)within the period specified by the tribunal, or
(b)if the tribunal does not specify a period, within such period as WRA may specify.
Settlement agreementsE+W184Settling disputes by agreementE+W(1)A “settlement agreement” means an agreement between a person to whom an appealable decision applies (a “relevant person”) and WRA that the decision is to be—
(2)Where a relevant person and WRA enter into a settlement agreement, the consequences are to be the same as if, at the time that the agreement was entered into, the tribunal had determined an appeal against the appealable decision in the manner set out in the agreement.
(3)But a settlement agreement is 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).
(4)Subsection (2) does not apply if, within 30 days from the day on which the settlement agreement was entered into, the relevant person gives notice to WRA that the person wishes to withdraw from the agreement.
(5)Subsection (2) does not apply to a settlement agreement which is not in writing unless the fact that the agreement was entered into and the terms agreed are confirmed by notice issued by WRA to the relevant person.
(6)Where a notice is issued in accordance with subsection (5), the references in subsections (2) and (4) to the time at which the settlement agreement is entered into are to be treated as references to the time at which the notice is issued.
(7)A relevant person and WRA may not enter into a settlement agreement in relation to an appealable decision if an appeal against the decision has been finally determined.
Prospective PART 9 E+WINVESTIGATION OF CRIMINAL OFFENCES185Powers 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.
(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.
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
“(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
“(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—
(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 Authority16AThe Welsh Revenue Authority.”
PART 10 E+WFINAL PROVISIONS188Power 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—
(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—
(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;
(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,
(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—
“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—
(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;
(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;
(b)where determined by or under Tribunal Procedure Rules, the Upper Tribunal.
193Index of defined expressionsE+WThe following Table lists expressions defined or otherwise explained in this Act.
TABLE 1ExpressionSectionAppealable decision (“penderfyniad apeladwy”)section 172(2) and (3)Business assets (“asedau busnes”)section 111Business documents (“dogfennau busnes”)section 111Business premises (“mangre busnes”)section 111Carrying on a business (“rhedeg busnes”)section 85Charity (“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 40Financial year (“blwyddyn ariannol”)section 192(2)Identification notice (“hysbysiad adnabod”)section 92(1)Information notice (“hysbysiad gwybodaeth”)section 83Late 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 134Premises (“mangre”)section 111Protected 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 84Tax 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 56WRA 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—
(b)sections 37, 82, 117 and 171;
(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+WThe short title of this Act is the Tax Collection and Management (Wales) Act 2016.
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