Tax Collection and Management (Wales) Act 2016 section 130

Amount of penalty for inaccuracy in document given to WRA

Section 130 sets out the maximum penalty amounts that the Welsh Revenue Authority can impose when a document submitted to it contains an inaccuracy, with the penalty level depending on whether the inaccuracy was deliberate or merely careless.

• Penalties for inaccuracies are calculated as a percentage of the potential lost revenue — that is, the tax that would have been lost had the inaccuracy gone undetected.
• A deliberate inaccuracy carries a penalty of up to 100% of the potential lost revenue.
• A careless inaccuracy carries a lower penalty of up to 30% of the potential lost revenue.
• These are maximum amounts, meaning WRA has discretion to impose a lower penalty within the relevant ceiling depending on the circumstances.