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

Penalty for multiple failures to pay landfill disposals tax on time

Section 122ZA introduces escalating penalties for repeated failures to pay landfill disposals tax on time within a rolling penalty period.

• When a person first fails to pay landfill disposals tax by the penalty date, a 12-month penalty period begins the following day.
• If, during that penalty period, the person fails to pay another amount of landfill disposals tax on time, the new failure attracts a penalty under this section instead of under section 122, and the penalty period is extended by a further 12 months from the new penalty date.
• The penalty rate escalates 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 any subsequent failures.
• The penalty period can be extended repeatedly, meaning persistent late payment will continue to attract penalties at the highest rate for as long as failures keep occurring.