Tax Collection and Management (Wales) Act 2016 section 144

Reasonable excuse for failure to keep and preserve records

Section 144 explains when a person can avoid a penalty for failing to keep and preserve records by demonstrating they had a reasonable excuse for the failure.

• A person who fails to keep and preserve records as required can escape the penalty if they can show the Welsh Revenue Authority (WRA) or a tribunal that they had a reasonable excuse for the failure.
• A lack of funds is not accepted as a reasonable excuse unless the shortage was caused by events beyond the person's control.
• Relying on someone else to keep or preserve the records is not a reasonable excuse unless the person took reasonable care to avoid the failure occurring.
• If a person had a genuine reasonable excuse that later ceased to apply, they will still be treated as having a reasonable excuse provided they put things right without unreasonable delay after the excuse ended.