Tax Collection and Management (Wales) Act 2016 section 150

Increased daily default penalty for failure to comply with information notice

Section 150 allows the Welsh Revenue Authority to apply to a tribunal for an increased daily penalty when a person continues to fail to comply with an unidentified third party information notice after a standard daily penalty has already been imposed.

• WRA can apply to the tribunal for an increased daily penalty if a person's failure to comply with an unidentified third party notice continues for more than 30 days after the standard daily penalty notice was issued, provided the person has been warned that such an application may be made.
• WRA cannot apply for the increased penalty while any review or appeal relating to the original penalty or the standard daily penalty for the same failure remains outstanding.
• If the tribunal approves the increased penalty, it replaces the standard daily penalty for each applicable day, and the tribunal sets the amount up to a maximum of £1,000 per day, taking into account the cost of compliance, any benefits to the person from non-compliance, and any benefits to others from the non-compliance.
• WRA must notify the person of the increased penalty, stating the first day it applies, and it then runs for that day and each subsequent day the failure continues.

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