Tax Collection and Management (Wales) Act 2016 section 140

Special reduction in penalty under Chapter 3

Section 140 allows the Welsh Revenue Authority to reduce penalties for inaccuracies where special circumstances exist, while defining what does and does not qualify as a special circumstance.

• WRA has discretion to reduce a penalty where it considers special circumstances justify doing so
• A taxpayer's inability to pay, or the fact that one person's underpayment is offset by another person's overpayment, do not count as special circumstances
• A reduction can take several forms: full remission, suspension of the penalty, or an agreed compromise in penalty proceedings
• Any reference to a penalty in this context also covers any interest that has accrued on the penalty

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