# Tax Collection and Management (Wales) Act 2016, Section 126: Reasonable excuse for failure to make tax return or pay tax or amount payable in respect of tax credit

Extent: E+W

(1) If a person satisfies WRA or (on appeal) the tribunal that there is a reasonable excuse for a failure to make a tax return, the person is not liable to a penalty under sections 118 to 120 , 120B, 120E or 120F, or (as the case may be) to a penalty point under section 120A, in relation to the failure.
(2) If a person satisfies WRA or (on appeal) the tribunal that there is a reasonable excuse for a failure to pay a WRA-collected tax, the person is not liable to a penalty under sections 122 to 122B in relation to the failure.
(2A) If a person satisfies WRA or (on appeal) the tribunal that there is a reasonable excuse for a failure to pay an amount payable in respect of a tax credit, the person is not liable to a penalty under section 123A in relation to the failure.
(3) For the purposes of subsections (1) , (2) and (2A)—
(a) an insufficiency of funds is not a reasonable excuse unless attributable to events outside the person's control;
(b) where a person relies on another person to do anything, that is not a reasonable excuse unless the first person took reasonable care to avoid the failure;
(c) where a person had a reasonable excuse for the failure but the excuse has ceased, the person is to be treated as having continued to have the excuse if the failure is remedied without unreasonable delay after the excuse ceased.

---
Source: https://www.legislation.gov.uk/anaw/2016/6/section/126 (the official version)
Page: https://openlegislation.uk/tax-collection-and-management-wales-act-2016/section-126
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.