Tax Collection and Management (Wales) Act 2016 section 138

Potential lost revenue: delayed tax

Section 138 explains how to calculate potential lost revenue when an inaccuracy has caused a devolved tax payment to be declared later than it should have been.

• Where an inaccuracy results in tax being declared late, the undeclared amount is referred to as "the delayed tax".
• The potential lost revenue is calculated at a rate of 5% of the delayed tax for each full year of delay.
• For any remaining period of delay shorter than a full year, the potential lost revenue is calculated on a pro-rata basis equivalent to 5% per year.
• This calculation does not apply where the inaccuracy relates to losses, which are dealt with separately under a different provision.

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