Tax Collection and Management (Wales) Act 2016 section 65

Unjustified enrichment: further provision

Section 65 provides additional rules about how loss or damage suffered by a taxpayer is taken into account when determining whether repaying overpaid devolved tax would result in unjustified enrichment.

• This section applies where a devolved tax overpayment would normally be repayable, but someone other than the taxpayer has effectively borne the cost of that payment.
• If the taxpayer has suffered loss or damage due to mistaken assumptions about how devolved tax rules operate, that loss is generally disregarded when deciding whether a repayment would unjustly enrich the taxpayer — unless the taxpayer can quantify the loss.
• The taxpayer must demonstrate both the existence of the loss and the specific amount that would appropriately compensate them for it; only that proven amount is taken into account.
• Mistaken assumptions covered by this section include those relating to any legislation (current or repealed), assimilated direct legislation, or any notices published by the Welsh Revenue Authority connected with the devolved tax in question.