Section 139 Reduction in penalty under Chapter 3 for disclosureI1

England and Wales

(1)

WRA may reduce a penalty payable under this Chapter where a person makes a qualifying disclosure.

(2)

A “qualifying disclosure” means disclosure of—

(a)

an inaccuracy which is relevant to a person's liability to a F1WRA-collected tax,

(b)

a supply of false information, or withholding of information, which is relevant to a person's liability to a WRA-collected tax, F2...

(c)

a failure to disclose an under-assessment in respect of a WRA-collected tax,

F3(d)

an inaccuracy which is relevant to a person’s entitlement to a tax credit or liability to pay an amount in respect of a tax credit,

(e)

a supply of false information, or withholding of information, which is relevant to a person’s entitlement to a tax credit or liability to pay an amount in respect of a tax credit, or

(f)

a failure to disclose an under-assessment in respect of a person’s liability to pay an amount in respect of a tax credit.

(3)

A person makes a qualifying disclosure by—

(a)

telling WRA about it,

(b)

giving WRA reasonable help in quantifying—

(i)

the inaccuracy,

(ii)

the inaccuracy attributable to the supply of false information or withholding of information, or

(iii)

the under-assessment, and

(c)

allowing WRA access to records for the purpose of ensuring that—

(i)

the inaccuracy,

(ii)

the inaccuracy attributable to the supply of false information or withholding of information, or

(iii)

the under-assessment,

is fully corrected.

(4)

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.

(5)

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 inaccuracy, the supply of false information or withholding of information, or the under-assessment, and

(b)

otherwise, is “prompted”.

(6)

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

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: Word in s. 139(2) omitted (1.4.2018) by virtue of The Landfill Disposals Tax (Administration) (Wales) Regulations 2018 (S.I. 2018/101), reg. 1(2), Sch. para. 34(a)
F3: S. 139(2)(d)-(f) inserted (1.4.2018) by The Landfill Disposals Tax (Administration) (Wales) Regulations 2018 (S.I. 2018/101), reg. 1(2), Sch. para. 34(b)

Commencement

I1: S. 139 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