Section 133 Penalty for failure to notify under-assessment or under-determinationI1

England and Wales

(1)

A person is liable to a penalty where—

(a)

a WRA assessment understates the person's liability to a F1WRA-collected tax, and

(b)

the person has failed to take reasonable steps to notify WRA, within the period of 30 days beginning with the day on which the notice of assessment is issued, that it is an under-assessment.

F2(1A)

A person is also liable to a penalty where—

(a)

a WRA assessment under section 55A understates the amount that the person is required to pay to WRA, and

(b)

the person has failed to take reasonable steps to notify WRA, within the period of 30 days beginning with the day on which the notice of assessment is issued, that it is an under-assessment.

(2)

In deciding what steps (if any) were reasonable, WRA must consider whether the person knew, or should have known, about the under-assessment.

(3)

The penalty payable under this section is F3an amount not exceeding 30% of the potential lost revenue.

(4)

In this section—

(a)

“WRA assessment” includes a determination made by WRA under section 52, and

(b)

accordingly, references in this Chapter to an under-assessment include references to an under-determination.

Annotations

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
F2: S. 133(1A) inserted (1.4.2018) by The Landfill Disposals Tax (Administration) (Wales) Regulations 2018 (S.I. 2018/101), reg. 1(2), Sch. para. 31
F3: Words in s. 133(3) inserted (1.4.2018) by Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (anaw 1), s. 81(2)(3), Sch. 23 para. 50; S.I. 2018/34, art. 3

Commencement

I1: S. 133 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