Tax Collection and Management (Wales) Act 2016 section 120

Penalty for failure to make tax return within 12 months from filing date

Section 120 sets out the penalties that apply when a person fails to submit a required tax return for more than 12 months after the filing date, distinguishing between deliberate and non-deliberate failures.

• A penalty arises if a required tax return has still not been made more than 12 months after the filing date.
• Where the failure is deliberate and withholds information that would help WRA assess the tax liability, the penalty is £300 or up to 95% of the tax that would have been due, whichever is greater.
• In all other (non-deliberate) cases, the penalty is £300 or 5% of the tax that would have been due, whichever is greater.
• The distinction between deliberate and non-deliberate withholding of information is critical, as the maximum penalty differs dramatically — 95% versus 5% of the tax liability.