Tax Collection and Management (Wales) Act 2016 section 122A

Further penalties for continuing failure to pay devolved tax

Section 122A imposes additional escalating penalties on a person who continues to fail to pay an amount of devolved tax after the initial penalty has already been triggered.

• This section applies where a person has already become liable to an initial penalty under section 122 or 122ZA for failing to pay devolved tax by the relevant penalty date.
• If any part of the tax remains unpaid after approximately 5 months from the penalty date, a further penalty of 5% of the outstanding amount is charged.
• If any part of the tax still remains unpaid after approximately 11 months from the penalty date, a second further penalty of 5% of the outstanding amount is charged.
• These additional penalties are calculated on the amount that is still outstanding at each respective milestone, not on the original amount due.