Tax Collection and Management (Wales) Act 2016 section 132

Penalty for deliberate inaccuracy in document given to WRA by another person

Section 132 imposes a penalty on a person who deliberately causes an inaccuracy in a document that someone else submits to the Welsh Revenue Authority (WRA), by supplying false information or withholding information from the person who submits the document.

• A person ("person A") faces a penalty if they deliberately supply false information to, or deliberately withhold information from, another person, intending this to cause an inaccuracy in a document that the other person gives to WRA.
• The inaccuracy must be a "relevant inaccuracy", meaning it results in an understatement of devolved tax liability, a false or inflated loss, a false or inflated repayment claim, or a false or inflated tax credit claim.
• Person A can be penalised regardless of whether the other person who actually submitted the document is also penalised for the same inaccuracy.
• The maximum penalty is 100% of the potential lost revenue arising from the inaccuracy.