{
  "url": "https://openlegislation.uk/tax-collection-and-management-wales-act-2016/section-127",
  "json_url": "https://openlegislation.uk/tax-collection-and-management-wales-act-2016/section-127.json",
  "legislation": "anaw/2016/6",
  "legislation_title": "Tax Collection and Management (Wales) Act 2016",
  "legislation_url": "https://openlegislation.uk/tax-collection-and-management-wales-act-2016",
  "path": "section/127",
  "kind": "section",
  "number": "127",
  "heading": "Assessment of penalties under Chapter 2",
  "text": "(1) Where a person becomes liable to a penalty under this Chapter, WRA must—\n(a) assess the penalty,\n(b) issue notice to the person of the penalty assessed, and\n(c) state in the notice the period , transaction or amount in respect of which the penalty has been assessed.\n(2) An assessment of a penalty under this Chapter may be combined with an assessment to a WRA-collected tax.\n(3) A supplementary assessment may be made in respect of a penalty under section 119 , 120 or 120F if an earlier assessment operated by reference to an underestimate of the amount of WRA-collected tax to which a person would have been liable if a tax return had been made.\n(4) If—\n(a) an assessment in respect of a penalty under section 119 , 120 or 120F is based on the amount of WRA-collected tax to which a person would have been liable if a tax return had been made, and\n(b) that liability is found by WRA to be excessive,\nWRA may issue a notice to the person liable to the penalty amending the assessment so that it is based on the correct amount.\n(5) A supplementary assessment may be made in respect of a penalty under section 122 , 122ZA, 122A or 122B if an earlier assessment operated by reference to an underestimate of the amount of WRA-collected tax which was payable.\n(6) If an assessment in respect of a penalty under section 122 , 122ZA, 122A or 122B is based on an amount of tax payable that is found by WRA to be excessive, WRA may issue a notice to the person liable to the penalty amending the assessment so that it is based on the correct amount.\n(6A) A supplementary assessment may be made in respect of a penalty under section 123A if an earlier assessment operated by reference to an underestimate of the amount payable in respect of the tax credit in question.\n(6B) If an assessment in respect of a penalty under section 123A is based on an amount that is found by WRA to be excessive, WRA may issue a notice to the person liable to the penalty amending the assessment so that it is based on the correct amount.\n(7) An amendment made under subsection (4) , (6) or (6B) —\n(a) does not affect when the penalty must be paid, and\n(b) may be made after the last day on which the assessment in question could have been made under section 128.",
  "extent": "E+W",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Words in s. 127(1)(c) substituted (1.4.2018) by The Landfill Disposals Tax (Administration) (Wales) Regulations 2018 (S.I. 2018/101), reg. 1(2), Sch. para. 27(2)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "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"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Words in s. 127(3) substituted (19.9.2025) by Visitor Accommodation (Register and Levy) Etc. (Wales) Act 2025 (asc 5), s. 67(1), Sch. 2 para. 47(a)"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "Words in s. 127(4) substituted (19.9.2025) by Visitor Accommodation (Register and Levy) Etc. (Wales) Act 2025 (asc 5), s. 67(1), Sch. 2 para. 47(a)"
    },
    {
      "type": "F",
      "label": "F5",
      "text": "Words in s. 127(5) substituted (19.9.2025) by Visitor Accommodation (Register and Levy) Etc. (Wales) Act 2025 (asc 5), s. 67(1), Sch. 2 para. 47(b)"
    },
    {
      "type": "F",
      "label": "F6",
      "text": "Words in s. 127(6) substituted (19.9.2025) by Visitor Accommodation (Register and Levy) Etc. (Wales) Act 2025 (asc 5), s. 67(1), Sch. 2 para. 47(c)"
    },
    {
      "type": "F",
      "label": "F7",
      "text": "S. 127(6A)(6B) inserted (1.4.2018) by The Landfill Disposals Tax (Administration) (Wales) Regulations 2018 (S.I. 2018/101), reg. 1(2), Sch. para. 27(3)"
    },
    {
      "type": "F",
      "label": "F8",
      "text": "Words in s. 127(7) substituted (1.4.2018) by The Landfill Disposals Tax (Administration) (Wales) Regulations 2018 (S.I. 2018/101), reg. 1(2), Sch. para. 27(4)"
    },
    {
      "type": "C",
      "label": "C1",
      "text": "Ss. 125-128 applied (1.4.2018) by The Tax Collection and Management (Reimbursement Arrangements) (Wales) Regulations 2018 (S.I. 2018/88), regs. 1(2), 8(3)"
    },
    {
      "type": "I",
      "label": "I1",
      "text": "S. 127 in force at 1.4.2018 by S.I. 2018/33, art. 3"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/anaw/2016/6/section/127",
    "retrieved_at": "2026-10-29T20:18:13.778220+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}