Tax Collection and Management (Wales) Act 2016 section 151

Tax-related penalty for failure to comply with information notice or obstruction

Section 151 provides for a significant additional penalty, determined by the Upper Tribunal, where a person's continued failure to comply with an information notice or obstruction of WRA results in a substantial loss of devolved tax or tax credit.

• Where a person continues to fail to comply with an information notice or obstruct WRA after a penalty notice has been issued, and WRA believes this has led to significantly less devolved tax or tax credit being paid, WRA can apply to the Upper Tribunal for an additional penalty.
• The Upper Tribunal determines the amount of the additional penalty, having regard to the amount of devolved tax or tax credit that has not been, or is not likely to be, paid.
• WRA must apply to the Upper Tribunal within 12 months of the relevant date, which is generally the date the original penalty arose — though if the information notice is appealable, the 12-month period runs from the latest of the original penalty date, the end of the appeal window, or the date any appeal is finally resolved.
• WRA cannot make the application if a decision relating to an earlier penalty for the same failure or obstruction is still under review or appeal.

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