Tax Collection and Management (Wales) Act 2016 section 141

Assessment of penalties under Chapter 3

Section 141 sets out the procedure that the Welsh Revenue Authority must follow when assessing penalties for inaccuracies, and the time limits within which such penalty assessments must be made.

• WRA must formally assess any penalty for inaccuracy, notify the person in writing, and specify the tax period, transaction or tax credit claim to which the penalty relates.
• A penalty assessment may be combined with a related devolved tax assessment rather than issued separately.
• Penalties for inaccuracies in documents or for failing to notify an under-assessment must be assessed within 12 months of either the end of the appeal period for the correcting decision or, where there is no formal tax assessment, the date the error is corrected.
• Where an earlier penalty assessment was based on an underestimate of the potential lost revenue, WRA may issue a supplementary penalty assessment to make up the shortfall.