Tax Collection and Management (Wales) Act 2016 section 129

Penalty for inaccuracy in document given to WRA

Section 129 sets out when a person becomes liable to a penalty for providing the Welsh Revenue Authority (WRA) with a document that contains an inaccuracy relating to a devolved tax.

• A penalty arises when a person gives WRA a document containing an inaccuracy that understates a tax liability, overstates a loss, makes a false or inflated repayment claim, or makes a false or inflated tax credit claim.
• The inaccuracy must have been either deliberate or careless — careless meaning the person failed to take reasonable care.
• An inaccuracy that was originally innocent becomes treated as careless if the person later discovers it but does not take reasonable steps to inform WRA.
• If a single document contains more than one qualifying inaccuracy, the person is liable to a separate penalty for each one.