Landfill Disposals Tax (Wales) Act 2017 Schedule 4 para 10

Amendment to penalty reduction provisions for disclosure

Schedule 4 paragraph 10 extends the existing penalty reduction rules for voluntary disclosure so that they also apply to the new penalty for failure to make a return under section 118A.

• Section 121 of the Tax Collection and Management (Wales) Act 2016 allows penalties for failing to make a tax return to be reduced where a taxpayer makes a disclosure.
• Previously, section 121 only applied to penalties imposed under section 118.
• This amendment adds a reference to section 118A, so that the same disclosure-based penalty reduction is available for the new landfill disposals tax return penalty.
• This ensures consistent treatment: taxpayers who cooperate by making a disclosure can benefit from a reduced penalty regardless of whether the original penalty arose under section 118 or section 118A.