Tax Collection and Management (Wales) Act 2016 section 66

Unjustified enrichment: reimbursement arrangements

Section 66 gives the Welsh Ministers the power to make regulations about reimbursement arrangements, which are schemes designed to ensure that a person claiming back overpaid tax from the Welsh Revenue Authority (WRA) does not become unjustly enriched, by requiring them to pass the money on to those who actually bore the cost.

• The Welsh Ministers can make regulations requiring reimbursement arrangements to meet prescribed conditions and be backed by undertakings given to WRA, failing which the arrangements will be ignored when deciding if a claimant would be unjustly enriched.
• Reimbursement arrangements are plans put in place by a claimant for overpaid tax relief, to ensure that the repayment is passed on to the people who actually bore the economic cost of the original tax payment to WRA.
• Regulations may specify detailed requirements for reimbursement arrangements, including time limits for reimbursement, repayment of unreimbursed amounts to WRA, treatment of interest, and record-keeping obligations.
• The regulations may impose penalties for non-compliance, including fixed, daily, and amount-based penalties, but they cannot create criminal offences and do not apply to failures that began before the regulations came into force.