Tax Collection and Management (Wales) Act 2016 section 184

Settling disputes by agreement

Section 184 provides a mechanism for taxpayers and the Welsh Revenue Authority (WRA) to resolve disputes about tax decisions by reaching a formal settlement agreement, without the need for a tribunal hearing.

• A settlement agreement allows a taxpayer and WRA to agree that an appealable decision should be affirmed, varied, or cancelled, with the same legal effect as if a tribunal had decided the appeal.
• A taxpayer has a 30-day cooling-off period after entering into a settlement agreement, during which they may withdraw by giving notice to WRA.
• If a settlement agreement is reached verbally rather than in writing, it only takes effect once WRA has issued a written notice confirming the agreement and its terms to the taxpayer.
• A settlement agreement cannot be made if a tribunal appeal against the decision in question has already been finally determined.