Section 121 Reduction in penalty for failure to make tax return: disclosureI1

England and Wales

(1)

WRA may reduce a penalty under section 118, F1118A, 119 F2, 120, 120B, 120E or 120F if the person discloses information which has been withheld as a result of a failure to make a tax return (“relevant information”).

(2)

A person discloses relevant information by—

(a)

telling WRA about it,

(b)

giving WRA reasonable help in quantifying any F3WRA-collected tax unpaid by reason of the information having been withheld, and

(c)

allowing WRA access to records for the purpose of checking how much WRA-collected tax is so unpaid.

(3)

In reducing a penalty under this section, WRA may take account of—

(a)

whether the disclosure was prompted or unprompted, and

(b)

the quality of the disclosure.

(4)

Disclosure of relevant information—

(a)

is “unprompted” if made at a time when the person making the disclosure has no reason to believe that WRA has discovered or is about to discover the relevant information, and

(b)

otherwise, is “prompted”.

(5)

“Quality”, in relation to disclosure, includes timing, nature and extent.

Annotations

Textual amendments

F1: Word in s. 121(1) inserted (1.4.2018) by Landfill Disposals Tax (Wales) Act 2017 (anaw 3), s. 97(2), Sch. 4 para. 10; S.I. 2018/35, art. 3
F2: Words in s. 121(1) substituted (19.9.2025) by Visitor Accommodation (Register and Levy) Etc. (Wales) Act 2025 (asc 5), s. 67(1), Sch. 2 para. 43
F3: Word in Act substituted (19.9.2025) by Visitor Accommodation (Register and Levy) Etc. (Wales) Act 2025 (asc 5), s. 67(1), Sch. 2 para. 21

Commencement

I1: S. 121 in force at 1.4.2018 by S.I. 2018/33, art. 3

Notes on the whole Act

Textual amendments

F1: Word in Act substituted (19.9.2025) by Visitor Accommodation (Register and Levy) Etc. (Wales) Act 2025 (asc 5), s. 67(1), Sch. 2 para. 21

Notes on Chapter 2

Textual amendments

F1: Words in Pt. 5 Ch. 2 heading inserted (1.4.2018) by The Landfill Disposals Tax (Administration) (Wales) Regulations 2018 (S.I. 2018/101), reg. 1(2), Sch. para. 23

Notes on Reduction in penalty for disclosure of information

Textual amendments

F1: Ss. 120A-120H and cross-headings inserted (19.9.2025) by Visitor Accommodation (Register and Levy) Etc. (Wales) Act 2025 (asc 5), s. 67(1), Sch. 2 para. 42