Tax Collection and Management (Wales) Act 2016 section 131

Suspension of penalty for careless inaccuracy

Section 131 allows the Welsh Revenue Authority (WRA) to suspend all or part of a penalty imposed for a careless inaccuracy, subject to conditions, and sets out what happens at the end of the suspension period.

• WRA may suspend all or part of a careless inaccuracy penalty by issuing a notice specifying the amount suspended, the suspension period (up to two years), and conditions the person must meet.
• Suspension is only permitted where complying with the conditions would help the person avoid incurring further penalties for careless inaccuracies in the future.
• If the person meets all the conditions by the end of the suspension period, the suspended penalty (or suspended part) is cancelled; if not, it becomes payable.
• If the person incurs another penalty for an inaccuracy during the suspension period, the suspended penalty (or suspended part) immediately becomes payable.