Tax Collection and Management (Wales) Act 2016 section 58

Conditions for making WRA assessments

Section 58 sets out the four specific circumstances in which the Welsh Revenue Authority (WRA) is permitted to raise a tax assessment, together with an important exception that prevents assessments in certain cases.

• WRA may assess where a tax loss or excessive repayment was caused carelessly or deliberately by the taxpayer, their agent, or a partner in the same partnership.
• WRA may assess where a tax return enquiry window has closed or enquiries are complete, and WRA could not reasonably have been aware of the tax loss or excessive repayment based on information available to it at that time.
• WRA may assess where it makes an adjustment under the general anti-avoidance rule, or where it has formed the view that a tax credit situation has arisen.
• No assessment may be made in the first two cases if the tax shortfall resulted from a mistake in the return that followed the prevailing basis of calculation or generally accepted practice at the time the return was filed.