Landfill Disposals Tax (Wales) Act 2017 section 76

Penalties for multiple failures to pay tax on time

Section 76 introduces escalating penalties for taxpayers who repeatedly fail to pay landfill disposals tax on time within a rolling twelve-month penalty period.

• A twelve-month penalty period begins the day after the first penalty date on which a person fails to pay landfill disposals tax on time.
• If a further late payment occurs within the penalty period, the standard late-payment penalty under section 122 does not apply; instead, an escalating penalty under this section applies and the twelve-month window is extended from the date of the latest failure.
• Penalty rates increase with each successive failure during the penalty period: 2% of the unpaid amount for the first failure, 3% for the second, and 4% for the third and every subsequent failure.
• The penalty period can be extended repeatedly, meaning that continued late payments keep resetting the twelve-month clock and attracting higher-rate penalties.