Legalize / United Kingdom / Wales / Act of Senedd Cymru

Tax Collection and Management (Wales) Act 2016

Type Act of Senedd Cymru

Publication 2016-04-25

Last updated 2025-09-19

State In force

Jurisdiction Wales

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

PART 1 — OVERVIEW

Giving notices and other documents to WRA

1

This Act is arranged as follows—

(a) Part 2 establishes the Welsh Revenue Authority and makes provision about its organisation and main functions;

(b) Part 3 makes provision about the assessment of devolved taxes;

(ba) Part 3A makes provision about counteracting avoidance arrangements in relation to devolved taxes;

(c) Part 4 makes provision about the Welsh Revenue Authority's investigatory powers, including provision about notices requiring information and the inspection of premises;

(d) Part 5 makes provision for and in connection with the imposition of penalties in relation to WRA-collected taxes;

(e) Part 6 makes provision for interest to be payable on late payments to the Welsh Revenue Authority and on repayments by the Welsh Revenue Authority;

(f) Part 7 makes provision about payments to the Welsh Revenue Authority and the recovery of unpaid amounts;

(g) Part 8 makes provision for and in connection with reviews of and appeals against decisions of the Welsh Revenue Authority;

(h) Part 9 confers powers to make subordinate legislation about the investigation of criminal offences relating to devolved taxes;

(i) Part 10 contains provision that applies generally for the purposes of this Act.

PART 2 — THE WELSH REVENUE AUTHORITY

Establishment and status of the Welsh Revenue Authority

The Welsh Revenue Authority

2

(1) There is to be a body corporate to be known as the Welsh Revenue Authority or Awdurdod Cyllid Cymru.

(2) In this Act, the Welsh Revenue Authority is referred to as “WRA”.

(3) The functions of WRA are performed on behalf of the Crown and, accordingly, the property, rights and liabilities of WRA are property, rights and liabilities of the Crown.

Membership

3

(1) The members of WRA are—

(a) a chairperson appointed by the Welsh Ministers,

(b) not fewer than 4, nor more than 8, other persons appointed by the Welsh Ministers,

(d) either 1 or 2 other members of staff of WRA appointed by the chief executive, and

(e) 1 other member of staff of WRA appointed under section 6.

(2) The Welsh Ministers may appoint one of the members appointed under subsection (1)(b) as deputy chairperson.

(3) The Welsh Ministers may by regulations amend subsection (1) so as to substitute a different number for any of the numbers for the time being specified in it; but the regulations must ensure that the number of non-executive members continues to exceed the number of executive members.

(4) In this Part—

(a) the chairperson and members of WRA appointed under subsection (1)(b) are collectively referred to as “non-executive members”;

(b) the chief executive and members of WRA appointed under subsection (1)(d) or section 6 are collectively referred to as “executive members”;

Disqualification for appointment as non-executive member

4

A person is disqualified from appointment as a non-executive member of WRA if the person is—

(a) a member of the National Assembly for Wales,

(b) a member of the House of Commons, House of Lords, Scottish Parliament or Northern Ireland Assembly,

(d) a member of a local authority,

(e) a member of a National Park Authority,

(f) a member of the Welsh Government,

(g) a Minister of the Crown, a member of the Scottish Government or a Northern Ireland Minister,

(h) a police and crime commissioner,

(i) a person holding office under the Crown,

(j) a person employed in the civil service of the State, or

(k) the holder of an office, or a member or member of staff of a body, prescribed by regulations made by the Welsh Ministers.

Terms of non-executive membership

5

(1) A non-executive member of WRA holds office as a member for such period and on such terms as are specified in the terms of the member's appointment (but subject to subsection (4) and section 7).

(2) The period of office specified in the terms of a non-executive member's appointment must not be more than 5 years.

(3) A non-executive member of WRA appointed as deputy chairperson holds office as deputy chairperson for such period and on such terms as are specified in the person's terms of appointment as deputy chairperson (but subject to subsection (4) and section 7).

(4) A person may resign from office as a non-executive member, or as deputy chairperson, of WRA by giving notice to the Welsh Ministers.

(5) A person who is or has been a non-executive member of WRA may be re-appointed as a non-executive member once only.

(6) A person who is or has been deputy chairperson of WRA may be re-appointed as deputy chairperson.

(7) WRA may pay to non-executive members—

(a) such remuneration as WRA may, with the approval of the Welsh Ministers, determine, and

(b) such sums as WRA may, with the approval of the Welsh Ministers, determine by way of reimbursement of expenses incurred by them in carrying out their functions.

Appointment of elected executive member

6

(1) WRA must conduct a ballot of its staff for the purpose of appointing a member of staff as an elected executive member of WRA.

(2) The non-executive members of WRA must—

(a) appoint the winner of the ballot as an elected executive member of WRA, and

(b) determine the terms of that person's appointment.

(3) An elected executive member of WRA holds office as a member for such period and on such terms as are specified in the terms of the member's appointment (but subject to subsection (4) and section 7).

(4) An elected executive member of WRA may resign from office by giving notice to the non-executive members of WRA.

Removal of members etc.

7

(1) The Welsh Ministers may remove a person from office as a non-executive member of WRA by notice if—

(a) the person becomes disqualified from appointment as a non-executive member by virtue of section 4,

(b) the person has been absent from meetings of WRA for a period longer than 6 months without the permission of WRA, or

(c) the Welsh Ministers consider that the person is unfit to be a member or is unable or unwilling to carry out the person's functions as a member.

(2) The non-executive members of WRA may remove a person from office as an elected executive member of WRA by notice if—

(a) the person has been absent from meetings of WRA for a period longer than 6 months without the permission of WRA, or

(b) the non-executive members of WRA consider that the person is unfit to be a member or is unable or unwilling to carry out the person's functions as a member.

(3) A person ceases to be deputy chairperson of WRA on ceasing to be a non-executive member.

(4) A person ceases to be a non-executive member of WRA if the person becomes a member of staff of WRA.

(5) A person ceases to be an executive member of WRA on ceasing to be chief executive or any other member of staff of WRA.

Committees and staff

Committees and sub-committees

8

(1) WRA may establish committees for any purpose relating to its functions.

(2) WRA may determine the composition of its committees.

(3) WRA may appoint persons who are not members of WRA to be members of a committee, but those persons are not entitled to vote at meetings of the committee.

(4) A committee of WRA may establish sub-committees.

(5) A committee which establishes a sub-committee may determine its composition.

(6) A committee may appoint persons who are not members of WRA to be members of a sub-committee, but those persons are not entitled to vote at meetings of the sub-committee.

(7) WRA may pay to any members of a committee established by it, or of a sub-committee established by such a committee, who are not members of WRA—

(a) such remuneration as WRA may, with the approval of the Welsh Ministers, determine, and

(b) such sums as WRA may, with the approval of the Welsh Ministers, determine by way of reimbursement of expenses incurred by them in carrying out their functions.

Chief executive and other staff

9

(1) There is to be a chief executive of WRA.

(2) The chief executive is responsible for (among other things) securing that the functions of WRA are performed efficiently and effectively.

(3) The first person employed as chief executive is to be appointed by the Welsh Ministers on such terms as they may determine.

(4) Each subsequent chief executive is to be appointed by the non-executive members of WRA on such terms as they may, with the approval of the Welsh Ministers, determine.

(5) WRA may appoint other members of staff on such terms as it may, with the approval of the Welsh Ministers, determine.

(6) Service as the chief executive or as any other member of staff of WRA is service in the civil service of the State.

Procedure and validity

Procedure

10

(1) WRA must make rules to regulate its own procedure (including quorum) and that of any committee or sub-committee.

(2) The rules must provide that a meeting of WRA is not quorate unless a majority of the members present are non-executive members of WRA.

Validity of proceedings and acts

11

The validity of any proceedings or acts of WRA (or of any committee or sub-committee) is not affected by—

(a) any vacancy in its membership,

(b) any defect in the appointment of a member, or

Functions

Main functions

12

(1) WRA's general function is the collection and management of WRA-collected taxes.

(2) WRA has the following particular functions—

(a) providing to the Welsh Ministers information, advice and assistance relating to WRA-collected taxes;

(b) providing information and assistance relating to WRA-collected taxes to taxpayers, their agents and other persons;

(d) promoting compliance with the law relating to WRA-collected taxes and protecting against tax evasion and tax avoidance in relation to WRA-collected taxes;

(e) providing information, advice and assistance relating to the visitor levy to principal councils.

(3) WRA must provide the Welsh Ministers with such information, advice or assistance relating to its functions as the Welsh Ministers may from time to time require in such form as the Welsh Ministers determine.

(4) In addition to any other powers it has, WRA may do anything which it considers—

(a) necessary or expedient in connection with the exercise of its functions, or

(b) incidental or conducive to the exercise of those functions.

Internal authorisation to carry out functions

13

(1) WRA may authorise the carrying out of any of its functions (to any extent) by—

(a) a member of WRA,

(b) a committee of WRA or a sub-committee of such a committee, or

(2) But WRA may not authorise a committee or sub-committee to carry out any of its functions (to any extent) unless at least one of the members of the committee or sub-committee is a non-executive member of WRA.

(3) The authorisation of the carrying out of a function under this section does not affect—

(a) WRA's ability to exercise the function, or

(b) WRA's responsibility for the exercise of the function.

Delegation of functions

14

(1) WRA may delegate any of its functions to any person prescribed by regulations made by the Welsh Ministers.

(2) WRA may give directions to a person to whom any of its functions have been delegated about how the delegated functions are to be exercised and the person to whom the functions have been delegated must comply with any such direction.

(3) Delegations or directions under this section may be varied or revoked at any time.

(4) WRA must publish information about—

(a) delegations under this section, and

(b) directions under this section.

(5) Subsection (4) does not apply to the extent that WRA considers that publication of information would prejudice the effective exercise of its functions.

(6) Delegation of a function under this section does not affect—

(a) WRA's ability to exercise the function, or

(b) WRA's responsibility for the exercise of the function.

(7) WRA may make to a person to whom any of its functions have been delegated payments in respect of the exercise by the person of the delegated functions.

General directions

15

(1) The Welsh Ministers may give to WRA directions of a general nature.

(1A) Before giving a direction under subsection (1) that relates only to WRA’s functions relating to the visitor levy, the Welsh Ministers must consult each principal council that has introduced, or decided to introduce, the visitor levy in its area.

(2) WRA must, in the exercise of its functions, comply with directions given under subsection (1).

(3) Directions given under subsection (1) may not relate to the exercise of the functions in sections 29 or 30.

(4) Directions under this section may be varied or revoked at any time.

(5) The Welsh Ministers must publish any directions given under subsection (1).

Information

Use of information by WRA and delegates

16

(1) Information acquired—

(a) by WRA, or

(b) by a person to whom WRA has delegated any of its functions,

in connection with a function of WRA may be used only in accordance (2).

(2) The information may be used—

(a) by WRA, or

(b) by any person to whom WRA has delegated any of its functions,

in connection with any function of WRA.

(3) This section is subject to any international obligation of the United Kingdom which restricts or prohibits the use of information.

Confidentiality of protected taxpayer information

17

(1) An individual who is or has been a relevant official must not disclose protected taxpayer information unless the disclosure is permitted by section 18.

(2) In this section and section 19, “relevant official” means an individual who is—

(a) a member of WRA, of a committee of WRA or of a sub-committee of such a committee,

(b) a person to whom WRA has delegated any of its functions, a member of a body to whom WRA has delegated any of its functions, of a committee of such a body or of a sub-committee of such a committee, or an office-holder of such a body,

(d) a member of staff of a person to whom WRA has delegated any of its functions employed in connection with any of those functions,

(e) a person providing services to WRA, or

(f) a person providing services to a person to whom WRA has delegated any of its functions in connection with any of those functions.

(3) In subsection (1) and section 18, “protected taxpayer information” means information relating to a person (the “affected person”)—

(a) which was acquired by WRA or which was acquired by a person to whom any of the functions of WRA have been delegated in connection with those functions, and

(b) by which the affected person may be identified (whether by reason of the affected person's identity being specified in the information or being capable of being deduced from it).

(4) But information is not “protected taxpayer information” if it is information about internal administrative arrangements of WRA or of a person to whom WRA has delegated any of its functions (whether the information relates to members of staff of WRA or of such a person or to other persons).

Permitted disclosures

18

(1) A disclosure of protected taxpayer information is permitted by this section if—

(za) it is made for the purposes of WRA’s functions, other than the functions mentioned in section 12(2)(a) and (e), and (3),

(a) it is made with the consent of each person to whom the information relates,

(b) it is made for the purpose of obtaining services in connection with a function of WRA,

(c) it is made for the purposes of a criminal investigation or criminal proceedings or for the purposes of the prevention or detection of crime,

(d) it is made to a body with responsibility for the regulation of a profession in connection with misconduct on the part of a member of the profession which relates to a function of WRA,

(e) it is made for the purposes of civil proceedings,

(f) it is made in pursuance of an order of a court or tribunal,

(g) it is made in accordance with an enactment requiring or permitting the disclosure, ...

(h) it is made to WRA or to a person to whom WRA has delegated any of its functions for use in accordance with section 16,

(i) it is made to Her Majesty’s Revenue and Customs in connection with a function of WRA or in connection with a function of Her Majesty’s Revenue and Customs, or

(j) it is made to Revenue Scotland in connection with a function of WRA or in connection with the collection and management of a devolved tax within the meaning of the Scotland Act 1998 (c. 46).

(2) The Welsh Ministers may by regulations amend subsection (1).

Declaration of confidentiality

19

(1) Every individual who is a relevant official must make a declaration acknowledging the obligation of confidentiality under section 17.

(2) A declaration must be made—

(a) as soon as reasonably practicable following the individual's appointment, and

(b) in such form and manner as WRA may determine.

(3) For the purposes of subsection (2)(a)—

(a) the renewal of a fixed term appointment is not to be treated as an appointment,

(b) an individual within section 17(2)(e) is to be treated as appointed when the individual first provides services as mentioned there, and

(c) if an individual within section 17(2)(b), (d) or (f) was appointed (or treated as appointed) before the delegation of functions concerned, the individual is to be treated as required to make the declaration as soon as reasonably practicable after the functions are delegated.

Offence of wrongful disclosure of protected taxpayer information

20

(1) An individual who discloses information in contravention of section 17(1) commits an offence.

(2) It is a defence for an individual charged with an offence under subsection (1) to prove that the individual reasonably believed—

(a) that the disclosure of the information was permitted by section 18, or

(b) that the information had already lawfully been made available to the public.

(3) An individual who commits an offence under subsection (1) is liable—

(a) on summary conviction, to imprisonment for a term not exceeding the general limit in a magistrates’ court or a fine (or both);

(b) on conviction on indictment, to imprisonment for a term not exceeding 2 years or a fine (or both).

(4) This section does not affect the pursuit of any remedy or the taking of any action in relation to a contravention of section 17(1).

Court proceedings and evidence

Court proceedings

21

(1) WRA may institute criminal and civil proceedings in England and Wales.

(2) An individual authorised to conduct criminal or civil proceedings in magistrates' courts in England and Wales—

(a) by WRA, or

(b) by a person to whom WRA has delegated the function of authorising the conduct of such proceedings,

is entitled to do so even though not an authorised person for the purposes of the Legal Services Act 2007 (c. 29).

Evidence

22

(1) A document that purports to have been issued or signed by or with the authority of WRA⁠—

(a) is to be treated as having been so issued or signed unless the contrary is proved, and

(b) is admissible in any legal proceedings.

(2) A document that purports to have been issued by WRA and which certifies any of the matters specified in subsection (3) is sufficient evidence of that fact unless the contrary is proved.

(3) The matters are—

(a) that a specified person was appointed as a member of WRA on a specified date;

(b) that a specified person was appointed as a member of WRA's staff on a specified date;

(c) that at a specified time or for a specified purpose (or both) a specified member of WRA was authorised to exercise a function of WRA;

(d) that at a specified time or for a specified purpose (or both) a specified committee of WRA or a specified sub-committee of such a committee was authorised to exercise a function of WRA;

(e) that at a specified time or for a specified purpose (or both)—

(i) a specified member of WRA's staff, or

(ii) a member of WRA's staff of a specified description,

was authorised to exercise a function of WRA;

(f) that at a specified time or for a specified purpose (or both) a function of WRA was delegated to another specified person.

(4) A document that purports to have been issued by or with the authority of WRA and which certifies—

(a) that a tax return required to be made to WRA has not been made, or

(b) that a notice required to be given to WRA has not been given,

is sufficient evidence of that fact unless the contrary is proved.

(5) A copy of a document issued or acquired by WRA (or on its behalf) that is certified by WRA (or on its behalf) to be an accurate copy is admissible in any legal proceedings to the same extent as the document itself and is sufficient evidence of that document unless the contrary is proved.

(6) See section 168 (certificates of debt) for provision about the certification of debt.

Money

Funding

23

(1) The Welsh Ministers must pay WRA such amounts as they consider appropriate in respect of the carrying out of WRA's functions.

(2) The payments are to be made at the times, and subject to the conditions, that the Welsh Ministers consider appropriate.

Rewards

24

WRA may pay a reward to a person in return for a service which relates to any of its functions.

Payments of receipts into Welsh Consolidated Fund

25

(1) WRA must pay amounts collected in the exercise of its functions relating to devolved taxes into the Welsh Consolidated Fund.

(2) But WRA may do so after deduction of disbursements by way of repayments of devolved taxes (including interest on such repayments) and credits in respect of devolved taxes.

(3) WRA must pay into the Welsh Consolidated Fund amounts deducted under section 24A(3) or (4), in respect of costs, from proceeds of the visitor levy.

Charter of standards and values

26

(1) WRA must prepare a Charter.

(2) The Charter must include—

(a) standards of service, standards of behaviour and values which WRA is expected to adhere to when dealing with ... taxpayers, their agents , principal councils and other persons in the exercise of its functions, and

(b) standards of behaviour and values which WRA expects ... taxpayers, their agents , principal councils and other persons to adhere to when dealing with it.

(3) WRA must—

(a) publish the Charter,

(b) review the Charter—

(i) at least once in the period of 5 years beginning with the day on which the Charter is published, and

(ii) subsequently, at least once in the period of 5 years following a review, and

(4) Before publishing the Charter or a revised Charter WRA must consult such persons as it considers appropriate.

(5) WRA must lay the Charter and any revised Charter before the National Assembly for Wales.

(6) The first Charter must be published within 3 months of the coming into force of this section.

Corporate plans, annual reports, accounts etc.

Corporate plan

27

(1) WRA must, for each planning period, prepare a corporate plan and submit it for approval by the Welsh Ministers.

(2) The corporate plan must set out—

(a) WRA's main objectives for the planning period,

(b) the outcomes by reference to which the achievement of the main objectives may be measured, and

(2A) Before submitting the plan for approval by the Welsh Ministers, WRA must consult each principal council that has introduced, or decided to introduce, the visitor levy in its area on any objectives, outcomes or activities that relate to the visitor levy.

(3) The Welsh Ministers may approve the corporate plan subject to such modifications as may be agreed between them and WRA.

(4) When the Welsh Ministers approve the corporate plan, WRA must—

(a) publish the plan, and

(b) lay a copy of the plan before the National Assembly for Wales.

(5) During the planning period to which a corporate plan relates, WRA may review the plan and submit a revised corporate plan to the Welsh Ministers for approval.

(6) Subsections (2) to (4) apply to a revised corporate plan as they apply to a corporate plan.

(7) “Planning period” means—

(a) a first period prescribed by the Welsh Ministers by regulations, and

(b) each subsequent period of 3 years.

(8) The Welsh Ministers may by regulations substitute for the period for the time being specified in subsection (7)(b) such other period as they consider appropriate.

(9) The corporate plan for the first planning period must be submitted for approval by the Welsh Ministers not later than 6 months after WRA is established; and the corporate plan for each subsequent planning period must be submitted before the beginning of the planning period.

Annual report

28

(1) As soon as is reasonably practicable after the end of each financial year, WRA must—

(a) prepare and publish a report on the exercise of its functions during that year,

(b) send a copy of the report to the Welsh Ministers, and

(2) The report must (in particular) contain an assessment of the extent to which WRA has demonstrated during the financial year the standards of service, standards of behaviour and values which it is stated in the Charter that it is expected to adhere to.

(3) WRA may publish such other reports and information on matters relevant to its functions as it considers appropriate.

Accounts

29

(1) WRA must—

(a) keep proper accounting records, and

(b) prepare accounts in respect of each financial year in accordance with directions given by the Welsh Ministers.

(2) The directions which the Welsh Ministers may give include (among other things) directions as to—

(a) the information to be contained in the accounts and the manner in which the accounts are to be presented;

(b) the methods and principles in accordance with which the accounts are to be prepared;

(2A) Before giving a direction under subsection (1)(b) that relates only to the visitor levy, the Welsh Ministers must consult each principal council that has introduced, or decided to introduce, the visitor levy in its area.

(3) Directions under this section may be varied or revoked at any time.

Tax Statement

30

(1) WRA must prepare in respect of each financial year, in accordance with directions given by the Welsh Ministers, a statement of the amount of money collected by it during the financial year in the exercise of its functions (a “Tax Statement”).

(1A) Before giving a direction under subsection (1) that relates only to the visitor levy, the Welsh Ministers must consult each principal council that has introduced, or decided to introduce, the levy in its area.

(2) Directions under this section may be varied or revoked at any time.

Audit

31

(1) WRA must submit—

(a) the accounts prepared for a financial year, and

(b) the Tax Statement for a financial year,

to the Auditor General for Wales not later than 31 August in the following financial year.

(2) The Auditor General for Wales must—

(a) examine, certify and report on the accounts and Tax Statement, and

(b) not later than the end of the period of 4 months beginning with the day on which they are submitted, lay a copy of the certified accounts and Tax Statement, and the reports on them, before the National Assembly for Wales.

(3) In examining the accounts submitted under this section, the Auditor General for Wales must, in particular, be satisfied—

(a) that the expenditure to which the accounts relate has been incurred lawfully and in accordance with the authority which governs it, and

(b) that money received for a particular purpose or particular purposes has not been expended otherwise than for that purpose or those purposes.

(4) In examining the Tax Statement submitted under this section, the Auditor General for Wales must, in particular, be satisfied—

(a) that the money collected by WRA, to which the Tax Statement relates, has been collected lawfully, and

(b) that any deduction of disbursements has been made in accordance with section 24A or 25(2).

Examination into use of resources

32

(1) The Auditor General for Wales may carry out examinations into the economy, efficiency and effectiveness with which resources have been used in discharging WRA's functions.

(2) But that does not entitle the Auditor General for Wales to question the merits of the policy objectives of WRA.

(3) Before carrying out an examination the Auditor General for Wales must—

(a) consult the National Assembly for Wales, and

(b) take into account the views of the National Assembly for Wales as to whether or not an examination should be carried out.

(4) The Auditor General for Wales must—

(a) as soon as is reasonably practicable, publish a report of the results of an examination carried out under this section, and

(b) lay a copy of the report before the National Assembly for Wales.

Accounting officer

33

(1) The chief executive of WRA is the accounting officer of WRA.

(2) The accounting officer has, in relation to the accounts and finances of WRA, the responsibilities which are for the time being specified by the Welsh Ministers.

(3) The responsibilities which may be specified under this section include (among other things)—

(a) responsibilities in relation to the signing of WRA's accounts and the Tax Statement;

(b) responsibilities for the propriety and regularity of the finances of WRA;

(d) responsibilities owed to the National Assembly for Wales, the Welsh Ministers or a committee of the National Assembly for Wales.

Consequential amendments

Welsh public records

34

In section 148 of the Government of Wales Act 2006 (c. 32) (meaning of “Welsh public records”), in subsection (1), after paragraph (b) insert—

(ba) administrative and departmental records belonging to Her Majesty which are records of or held by the Welsh Revenue Authority;

Public Services Ombudsman

35

In Schedule 3 to the Public Services Ombudsman (Wales) Act 2005 (c. 10) (listed authorities), after the entry relating to the National Assembly for Wales Commission insert—

Taxation Welsh Revenue Authority

Auditor General for Wales

36

In section 23 of the Public Audit (Wales) Act 2013 (anaw 3) (general provision relating to fees), in subsection (3), after paragraph (b) insert—

(ba) an examination, certification or report under section 31 of the Tax Collection and Management (Wales) Act 2016 in respect of the Welsh Revenue Authority's Tax Statement;

PART 3 — TAX RETURNS, ENQUIRIES AND ASSESSMENTS

CHAPTER 1 — OVERVIEW

Overview of Part

37

This Part is about the assessment of WRA-collected taxes and includes provision about—

(a) keeping records;

(b) tax returns;

(d) determinations by WRA of WRA-collected tax due where no tax return is made;

(e) assessments by WRA of WRA-collected tax due and of amounts payable in respect of tax credits;

(f) claims for relief from double assessment and for repayment of WRA-collected tax;

(g) the making of claims.

CHAPTER 2 — ... DUTIES TO KEEP AND PRESERVE RECORDS

Duty to keep and preserve records

38

(1) A person who is required to make a tax return must—

(a) keep any records that may be needed to enable the person to demonstrate that the tax return is correct and complete, and

(b) preserve any records that may be needed for that purpose.

(2) The records must be preserved until the end of the later of the relevant date and the date on which—

(a) an enquiry into the tax return is completed (see section 50), or

(b) if there is no enquiry, the enquiry period ends (see section 43(1A)).

(3) The ““relevant date”” is the sixth anniversary of whichever is the later of—

(a) the filing date, and

(b) if the return has been made and subsequently amended under section 41, the date on which notice of amendment is given under that section.

(3A) But if WRA specifies an earlier date under this subsection, the “"relevant date”” means the date specified.

(4) Different dates may be specified for different purposes under subsection (3A).

(5) In this Chapter, “"records”” includes supporting documents (for example, accounts, books, deeds, contracts, vouchers and receipts).

(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Preservation of information etc.

39

(1) The duty under section 38 or 38A to preserve records may be satisfied—

(a) by preserving them in any form and by any means, or

(b) by preserving the information contained in them in any form and by any means, subject to any conditions or exceptions prescribed by regulations made by the Welsh Ministers.

(2) But this is subject to any requirement specified under section 21(7) (water discount record) or 43(2) (landfill disposals tax summary) of LDTA.

CHAPTER 3 — TAX RETURNS

Filing date

Meaning of “filing date”

40

(1) In the Welsh Tax Acts, the “filing date”—

(a) in relation to a tax return for land transaction tax, is the day by which the return is required to be made under LTTA;

(b) in relation to a tax return for landfill disposals tax, has the meaning given by section 39(4) of LDTA.

(2) In this Act the “filing date, in relation to a visitor levy return, has the meaning given by section 36 of the Visitor Accommodation (Register and Levy) Etc. (Wales) Act 2025 (asc 00).

Amendment and correction of tax returns

Amendment of tax return by taxpayer

41

(1) A person who has made a tax return may amend it by giving notice to WRA.

(2) An amendment under this section must be made before the end of the period of 12 months beginning with the relevant date (referred to in section 42 as the “amendment period”).

(3) The relevant date is the filing date.

(3A) But if the Welsh Ministers prescribe another date in regulations under this subsection, the relevant date is that date.

(4) This section is subject to sections 45(3) and 50.

Correction of tax return by WRA

42

(1) WRA may correct any obvious error or omission in a tax return.

(2) A correction under this section—

(a) is made by issuing a notice to the person who made the tax return, and

(b) is regarded as effecting an amendment of the tax return.

(3) The reference in subsection (1) to an error includes, for instance, an arithmetical mistake or an error of principle.

(4) A correction under this section must be made before the end of the period of 9 months beginning with the day on which the tax return was made.

(4A) If, as a result of a correction made under this section, an amount, or an additional amount, of WRA-collected tax is payable, the person who made the tax return must pay the amount, or additional amount, before the end of the period of 30 days beginning with the day on which notice of the correction is issued.

(5) A correction under this section has no effect if the person who made the tax return rejects it by—

(a) during the amendment period, amending the tax return under section 41 so as to reject the correction, or

(b) after that period, giving a notice rejecting the correction.

(6) A notice under subsection (5)(b) must be given to WRA before the end of the period of 3 months beginning with the day on which the notice of correction is issued.

CHAPTER 4 — WRA ENQUIRIES

Notice and scope of enquiry

Notice of enquiry

43

(1) WRA may enquire into a tax return if it issues notice of the intention to do so (a “notice of enquiry”) to the person who made the tax return before the end of the enquiry period (but see subsection (1B)).

(1A) The enquiry period for a tax return is the period of 12 months beginning with the relevant date.

(1B) But WRA may enquire into a tax return after the expiry of the enquiry period if—

(a) the tax return is made in respect of a land transaction,

(b) after the tax return is made, a further return is made in respect of the same land transaction,

(d) WRA believes it is necessary to enquire into the tax return mentioned in paragraph (a).

(2) For the purposes of subsection (1A), the relevant date is—

(a) if the tax return was made after the filing date, the day on which the tax return was made, or

(b) otherwise, the filing date,

but if the tax return is amended under section 41, the relevant date is the day on which the amendment was made.

(3) A tax return that has been the subject of one notice under this section may not be the subject of another, except a notice issued

(a) as a result of an amendment of the tax return under section 41, or

(b) by virtue of subsection (1B).

(4) In subsection (1B), “"further return”” means a further return made under LTTA.

Scope of enquiry

44

(1) An enquiry into a tax return extends to anything contained in the tax return, or required to be contained in the tax return, that relates—

(a) to the question whether the person who made the tax return is chargeable to the WRA-collected tax to which the tax return relates, ...

(b) to the amount of WRA-collected tax chargeable on the person who made the tax return,

(d) to the amount of tax credit to which the person is entitled.

(2) But if a notice of enquiry is issued as a result of the amendment of a tax return under section 41 after an enquiry into the tax return has been completed, the enquiry is limited to—

(a) matters to which the amendment relates, and

(b) matters affected by the amendment.

Amendment of tax return during enquiry

Amendment of tax return during enquiry to prevent loss of tax

45

(1) If, during the period when an enquiry into a tax return is in progress, WRA forms the opinion—

(a) that the amount stated in the tax return as the amount of WRA-collected tax chargeable is insufficient, and

(b) that, unless the return is immediately amended, there is likely to be a loss of WRA-collected tax,

WRA may by notice issued to the person who made the return amend it to make good the insufficiency.

(1A) If, during the period when an enquiry into a tax return is in progress, WRA forms the opinion—

(a) that the amount of tax credit claimed in the tax return is excessive, and

(b) that, unless the return is immediately amended, there is likely to be a loss of WRA-collected tax,

WRA may by notice issued to the person who made the return amend it so that the amount claimed is no longer excessive.

(2) If the enquiry is one that is limited by section 44(2) to matters arising from an amendment of the tax return,

(a) subsection (1) applies only so far as the insufficiency is attributable to the amendment , and

(b) subsection (1A) applies only so far as the excessive amount is attributable to the amendment.

(3) Where a notice is issued under subsection (1) or (1A), the person who made the tax return may no longer amend it under section 41.

(4) The person who made the tax return must pay any amount, or additional amount, of WRA-collected tax payable as a result of the amendment before the end of the period of 30 days beginning with the day on which notice of the amendment is issued.

(5) For the purposes of this section and sections 45A and 46 the period during which an enquiry into a tax return is in progress is the whole of the period—

(a) beginning with the day on which notice of enquiry into the tax return is issued, and

(b) ending with the day on which the enquiry is completed (see section 50).

Referral during enquiry

Referral of questions to tribunal during enquiry

46

(1) At any time when an enquiry is in progress the person who made the tax return and WRA may jointly refer any question arising in connection with the subject-matter of the tax return to the tribunal.

(2) The tribunal must determine any question referred to it.

(3) More than one referral may be made under this section in relation to an enquiry.

Withdrawal of referral

47

WRA or the person who made the tax return may withdraw a referral made under section 46.

Effect of referral on enquiry

48

(1) While proceedings on a referral under section 46 are in progress in relation to an enquiry⁠—

(a) no closure notice may be issued in relation to the enquiry (see section 50), and

(b) no application may be made for a direction to issue a closure notice (see section 51).

(2) Proceedings on a referral are in progress where—

(a) a referral has been made and has not been withdrawn, and

(b) the question referred has not been finally determined.

Effect of determination

49

(1) A determination under section 46 is binding on the parties to the referral in the same way, and to the same extent, as a decision on a preliminary issue in an appeal.

(2) WRA must take the determination into account—

(a) in reaching conclusions on the enquiry, and

(b) in the formulation of any amendments of the tax return that may be required to give effect to those conclusions.

(3) The question determined may not be reopened on an appeal, except to the extent that it could be reopened if it had been determined as a preliminary issue in an appeal.

Completion of enquiry

50

(1) An enquiry is completed when WRA issues a notice (a “closure notice”) to the person who made the tax return stating—

(a) that the enquiry is complete, and

(b) the conclusions reached in the enquiry.

(2) A closure notice must either—

(a) state that in WRA's opinion no amendment of the tax return is required, or

(b) make the amendments of the tax return required to give effect to WRA's conclusions.

(3) Where a closure notice is issued which makes amendments of a tax return, the person who made the tax return may no longer amend it under section 41.

(4) The person who made the tax return must pay an amount, or additional amount, of WRA-collected tax payable as a result of an amendment made by a closure notice before the end of the period of 30 days beginning with the day on which the notice is issued.

Direction to complete enquiry

51

(1) The person who made the tax return may make an application to the tribunal for a direction that a closure notice is to be issued within a specified period.

(2) The tribunal must give a direction unless satisfied that WRA has reasonable grounds for not giving a closure notice within that period.

CHAPTER 5 — WRA DETERMINATIONS

Determination of tax chargeable if no tax return made

52

(1) This section applies where—

(a) WRA has reason to believe that a person is chargeable to a WRA-collected tax,

(b) the person has not made a tax return in relation to the WRA-collected tax chargeable, and

(2) “The relevant filing date” means the date by which WRA believes a tax return was required to be made.

(3) WRA may make a determination (a “WRA determination”) of the amount of WRA-collected tax to which the person is, in WRA's opinion, chargeable.

(4) Notice of the determination must be issued to the person.

(5) The person must pay the WRA-collected tax payable in accordance with the WRA determination before the end of the period of 30 days beginning with the day on which notice of the determination is issued.

(6) No WRA determination may be made more than 4 years after the relevant date.

(7) The relevant date is—

(a) the relevant filing date, or

(b) such other date as the Welsh Ministers may by regulations prescribe.

Determination superseded by tax return

53

(1) If, after a WRA determination has been made, the person whom WRA had reason to believe was chargeable to a WRA-collected tax makes a tax return with respect to the tax, the return supersedes the determination.

(2) But subsection (1) does not apply to a tax return made—

(a) more than 4 years after the power to make a WRA determination first became exercisable, or

(b) more than 12 months after the day on which the notice of the determination was issued,

whichever is the later.

(3) Where—

(a) proceedings have been begun for the recovery of any WRA-collected tax charged by a WRA determination, and

(b) before the proceedings are concluded the determination is superseded by a tax return,

the proceedings may be continued as if they were proceedings for the recovery of so much of the WRA-collected tax charged by the tax return as is required to be paid and has not yet been paid.

CHAPTER 6 — WRA ASSESSMENTS

Assessment of loss of tax or of excessive repayment

Assessment where loss of tax

54

If WRA comes to the view that—

(a) an amount of WRA-collected tax that ought to have been assessed as WRA-collected tax chargeable on a person has not been assessed,

(b) an assessment of the WRA-collected tax chargeable on a person is or has become insufficient, or

WRA may make an assessment of the amount or further amount that ought in its opinion to be charged in order to make good the loss of WRA-collected tax.

Assessment to recover excessive repayment of tax

55

(1) If an amount of a WRA-collected tax has been, but ought not to have been, repaid to a person that amount may be assessed and recovered as if it were unpaid WRA-collected tax.

(2) If the repayment was made with interest, the amount assessed and recovered may include the amount of interest that ought not to have been paid.

References to “WRA assessment”

56

In this Act, “WRA assessment” means an assessment under section 54 , 55 or 55A.

Making WRA assessments

References to the “taxpayer”

57

In sections 58 to 61, “taxpayer” means—

(a) in relation to a WRA assessment under section 54, the person chargeable to the WRA-collected tax,

(b) in relation to a WRA assessment under section 55 or 55A, the person mentioned there.

Conditions for making WRA assessments

58

(1) A WRA assessment—

(a) may be made only in the four cases specified in subsections (2), (3), (3A) and (3B) , and

(b) may not be made in the circumstances specified in subsection (4).

(2) The first case is where the situation mentioned in section 54 or 55 was brought about carelessly or deliberately by—

(a) the taxpayer,

(b) a person acting on the taxpayer's behalf, or

(3) The second case is where—

(a) a tax return has been made,

(b) WRA has ceased to be entitled to issue a notice of enquiry into the return, or has completed its enquiries into it, and

(c) at the time when WRA ceased to be so entitled or completed those enquiries, it could not reasonably have been expected to be aware of the situation mentioned in section 54 or 55 on the basis of information made available to WRA before that time.

(3A) The third case is where WRA makes an adjustment under the general anti-avoidance rule (see Part 3A, in particular section 81E).

(3B) The fourth case is where WRA has come to the view that a situation described in section 55A has arisen.

(4) No WRA assessment may be made in the first or second case if—

(a) the situation mentioned in section 54 or 55 is attributable to a mistake in a tax return as to the basis on which the WRA-collected tax liability ought to have been calculated, and

(b) the mistake occurred because the tax return was made on the basis prevailing, or in accordance with the practice generally prevailing, at the time it was made.

(5) For the purpose of subsection (3)(c), information is regarded as made available to WRA if—

(a) it is contained in a tax return,

(b) it is contained in any documents produced or information provided to WRA for the purposes of an enquiry into any such return, or

(i) could reasonably be expected to be inferred by WRA from information falling within paragraph (a) or (b), or

(ii) is notified in writing to WRA by the taxpayer or a person acting on the taxpayer’s behalf.

Time limits for WRA assessments

59

(1) No WRA assessment may be made more than 4 years after the relevant date in any case involving a situation mentioned in section 54, 55 or 55A(a) or (b).

(2) But a WRA assessment of a taxpayer in any case involving a situation mentioned in section 54 , 55 or 55A(a) or (b) brought about carelessly by the taxpayer or a related person may be made up to 6 years after the relevant date.

(3) And a WRA assessment of a taxpayer in any case involving a situation mentioned in section 54 , 55 or 55A(a) or (b) brought about deliberately by the taxpayer or a related person may be made up to 20 years after the relevant date.

(4) A WRA assessment under section 55 is not out of time if it is made within the period of 12 months beginning with the day on which the repayment in question was made.

(4A) No WRA assessment may be made in a case involving a situation mentioned in section 55A(c)—

(a) if WRA has issued a notice to the taxpayer requiring payment of the amount in question, after the period of 12 months beginning with the day after that by which the payment was required, and

(b) otherwise, after the period of 12 months beginning with the day on which WRA became aware that the taxpayer was required to pay the amount in question.

(5) If the taxpayer has died—

(a) any WRA assessment on the personal representatives must be made before the end of the period of 4 years beginning with the date of the death, and

(b) a WRA assessment is not to be made in respect of a relevant date more than 6 years before that date.

(6) Any objection to the making of a WRA assessment on the ground that the time limit for making it has expired can only be made on a review of or appeal against the assessment.

(7) In this section—

“related person” (“person cysylltiedig”), in relation to the taxpayer, means—a person acting on the taxpayer's behalf, ora person who was a partner in the same partnership as the taxpayer;

“relevant date” (“dyddiad perthnasol”) , in relation to a WRA assessment in a case involving a situation mentioned in section 54 or 55, means—if a tax return has not been made, the date by which WRA believes a tax return was required to be made,if a tax return was made after the filing date, the day on which the tax return was made, orotherwise, the filing date.

“relevant date” (“dyddiad perthnasol”), in relation to a WRA assessment in a case involving a situation mentioned in section 55A(a) or (b), means—where the tax credit in question was claimed in a tax return made on or before the filing date, the filing date;where the tax credit in question was claimed in a tax return made after the filing date, the day on which the tax return was made;where the tax credit in question was claimed by any other means, the day on which the claim was made.

Situations brought about carelessly or deliberately

60

(1) This section applies for the purposes of sections 58 and 59.

(2) A situation is brought about carelessly by a person if the person fails to take reasonable care to avoid bringing about that situation.

(3) Where—

(a) information is provided to WRA,

(b) the person who provided the information, or the person on whose behalf it was provided, discovers some time later that the information was inaccurate, and

any situation brought about by the inaccuracy is to be treated as having been brought about carelessly by that person.

(4) References to a situation brought about deliberately by a person include a situation brought about as a result of a deliberate inaccuracy in a document given to WRA.

Assessment procedure

61

(1) Notice of a WRA assessment must be issued to the taxpayer.

(2) The amount payable in accordance with a WRA assessment must be paid before the end of the period of 30 days beginning with the day on which the notice of the assessment is issued.

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CHAPTER 7 — RELIEF IN CASE OF EXCESSIVE ASSESSMENT OR OVERPAID TAX

Double assessment

Claim for relief in case of double assessment

62

A person who believes that a WRA-collected tax has been assessed on that person more than once in respect of the same matter may make a claim to WRA for relief against any double charge.

Overpaid tax etc.

Claim for relief for overpaid tax etc.

63

(1) This section applies where—

(a) a person has paid an amount by way of a WRA-collected tax but believes the WRA-collected tax was not chargeable, or

(b) a person has been assessed as chargeable to an amount of a WRA-collected tax, or a WRA determination has been made that a person is chargeable to an amount of a WRA-collected tax, but the person believes the WRA-collected tax is not chargeable.

(2) The person may make a claim to WRA for the amount to be repaid or discharged.

(3) Where this section applies, WRA is not liable to give relief except as provided in this Part or by or under any other provision of the Welsh Tax Acts.

(4) For the purposes of this section and sections 63A to 81, an amount paid by one person on behalf of another is treated as paid by the other person.

Unjustified enrichment

Disallowing claims for relief under section 63 due to unjustified enrichment

64

WRA need not give effect to a claim for relief made under section 63 or 63A if, or to the extent that, repayment or discharge of the amount would unjustly enrich the claimant.

Unjustified enrichment: further provision

65

(1) This section applies where—

(a) there is an amount paid by way of a WRA-collected tax which (apart from section 64) would fall to be repaid or discharged to any person (“the taxpayer”), and

(b) the whole or a part of the cost of the payment of that amount to WRA has, for practical purposes, been borne by a person other than the taxpayer.

(2) Where, in a case to which this section applies, loss or damage has been or may be incurred by the taxpayer as a result of mistaken assumptions made in the taxpayer's case about the operation of any provisions relating to a WRA-collected tax, that loss or damage is to be disregarded, except to the extent of the quantified amount, in the making of any determination—

(a) of whether or to what extent the repayment or discharge of an amount to the taxpayer would enrich the taxpayer, or

(b) of whether or to what extent any enrichment of the taxpayer would be unjust.

(3) In subsection (2) “the quantified amount” means the amount (if any) which is shown by the taxpayer to constitute the amount that would appropriately compensate the taxpayer for loss or damage shown by the taxpayer to have resulted to the taxpayer from the making of the mistaken assumptions.

(4) The reference in subsection (2) to provisions relating to a WRA-collected tax is a reference to any provisions of—

(a) any enactment or assimilated direct legislation (whether or not still in force) which relates to the WRA-collected tax or to any matter connected with it, or

(b) any notice published by WRA under or for the purposes of any such enactment.

Unjustified enrichment: reimbursement arrangements

66

(1) The Welsh Ministers may by regulations make provision for reimbursement arrangements made by any person to be disregarded for the purposes of section 64 except where the arrangements—

(a) contain such provision as may be prescribed by the regulations, and

(b) are supported by such undertakings to comply with the provisions of the arrangements as may be required by the regulations to be given to WRA.

(2) In this section, “reimbursement arrangements” means any arrangements for the purposes of a claim under section 63 or 63A which—

(a) are made by any person for the purpose of securing that the person is not unjustly enriched by the repayment or discharge of any amount in pursuance of the claim, and

(b) provide for the reimbursement of persons who have for practical purposes borne the whole or any part of the cost of the original payment of that amount to WRA.

(3) The provision that may be prescribed by regulations under this section to be contained in reimbursement arrangements includes in particular—

(a) provision requiring a reimbursement for which the arrangements provide to be made within such period after the repayment to which it relates as may be specified in the regulations;

(b) provision for the repayment of amounts to WRA where those amounts are not reimbursed in accordance with the arrangements;

(c) provision requiring interest paid by WRA on any amount repaid by it to be treated in the same way as that amount for the purposes of any requirement under the arrangements to make reimbursement or to repay WRA;

(d) provision requiring such records relating to the carrying out of the arrangements as may be described in the regulations to be kept and produced to WRA.

(4) Regulations under this section may impose obligations on persons specified in the regulations—

(a) to make the repayments to WRA that they are required to make in pursuance of any provisions contained in any reimbursement arrangements by virtue of subsection (3)(b) or (c);

(b) to comply with any requirements contained in any such arrangements by virtue of subsection (3)(d).

(5) Regulations under this section may make provision for the form and manner in which, and the times at which, undertakings are to be given to WRA in accordance with the regulations and any such provision may allow for those matters to be determined by WRA in accordance with the regulations.

(6) Regulations under this section may make provision for penalties where a person breaches an obligation imposed by virtue of subsection (4).

(7) The regulations may in particular make provision—

(a) about the circumstances in which liability to a penalty is incurred;

(b) about the amounts of penalties;

(c) for fixed penalties, daily penalties and penalties calculated by reference to the amount of repayments which the person would have been liable to make to WRA if the obligation had been breached;

(d) about the procedure for assessing penalties;

(e) about reviews of or appeals against penalties;

(f) about enforcing penalties.

(8) But the regulations may not create criminal offences.

(9) Regulations made by virtue of subsection (6) may amend any enactment (including this Act).

(10) Regulations so made do not apply to a failure beginning before the day on which the regulations come into force.

Other grounds for disallowing claims

Cases in which WRA need not give effect to a claim

67

(1) WRA need not give effect to a claim for relief made under section 63 if, or to the extent that, the claim falls within a case described in this section.

(2) Case 1 is where the amount of a WRA-collected tax paid, or liable to be paid, is excessive because of—

(a) a mistake in a claim or election, or

(b) a mistake consisting of making, or failing to make, a claim or election.

(2A) In subsection (2), “"election”” means an election made under paragraph 3, 5 or 12 of Schedule 15 to LTTA (social housing reliefs).

(3) Case 2 is where the claimant is or will be able to seek relief by taking other steps under this Part.

(4) Case 3 is where the claimant—

(a) could have sought relief by taking such steps within a period that has now expired, and

(b) knew or ought reasonably to have known, before the end of that period, that such relief was available.

(5) Case 4 is where the claim is made on grounds that—

(a) have been put to the tribunal in the course of an appeal by the claimant relating to the amount paid or liable to be paid, or

(b) have been put to WRA in the course of a review by the claimant relating to the amount paid or liable to be paid that is treated as having been determined by the tribunal by virtue of section 184.

(6) Case 5 is where the claimant knew, or ought reasonably to have known, of the grounds for the claim before the latest of the following—

(a) the day on which a relevant appeal in the course of which the ground could have been put forward was determined by the tribunal (or is treated as having been so determined);

(b) the day on which the claimant withdrew a relevant appeal to the tribunal;

(7) In subsection (6), “relevant appeal” means an appeal by the claimant relating to the amount paid or liable to be paid.

(8) Case 6 is where the amount in question was paid or is liable to be paid—

(a) in consequence of proceedings enforcing the payment of that amount brought against the claimant by WRA, or

(b) in accordance with an agreement between the claimant and WRA settling such proceedings.

(9) Case 7 is where—

(a) the amount paid, or liable to be paid, is excessive by reason of a mistake in calculating the claimant's liability to WRA-collected tax, and

(b) the mistake occurred because liability was calculated in accordance with the practice generally prevailing at the time.

(10) Case 7 does not apply where the amount paid, or liable to be paid, is WRA-collected tax which has been charged contrary to EU law.

(11) For the purposes of subsection (10), an amount of WRA-collected tax is charged contrary to EU law if, ...—

(a) in the circumstances in question, the charge to WRA-collected tax is contrary to the provisions relating to the free movement of goods, persons, services and capital in Titles II and IV of Part 3 of the Treaty on the Functioning of the European Union, and

(b) at the time the tax is charged, the rights conferred by those provisions are recognised and available in domestic law by virtue of the European Union (Withdrawal) Act 2018 (c. 16) or any provision made under that Act.

(12) Case 8 is where—

(a) the claim is made in respect of an amount of landfill disposals tax, and

(b) an amount of landfill disposals tax that the claimant is required to pay has not been paid.

CHAPTER 8 — PROCEDURE FOR MAKING CLAIMS ETC.

Making claims

68

(1) A claim under section 62 , 63 or 63A must be made in such form as WRA may determine.

(2) The form of claim must provide for a declaration to the effect that all the particulars given in the form are correctly stated to the best of the claimant's information and belief.

(3) The form of claim may require—

(a) a statement of the amount of WRA-collected tax that will be required to be discharged or repaid in order to give effect to the claim;

(b) such information as is reasonably required for the purpose of determining whether and, if so, the extent to which the claim is correct;

(c) the delivery with the claim of such statements and documents, relating to the information contained in the claim, as are reasonably required for the purpose mentioned in paragraph (b).

(4) A claim for repayment of WRA-collected tax may not be made unless the claimant has documentary evidence that the WRA-collected tax has been paid.

(5) A claim under section 63 may not be made by being included in a tax return.

Duty to keep and preserve records

69

(1) A person making a claim under section 62 , 63 or 63A must—

(a) have kept any records that are needed to enable the person to make a correct and complete claim, and

(b) preserve those records in accordance with this section.

(2) The records must be preserved until the latest of the following—

(a) (except where paragraph (b) or (c) applies) the end of the period of 12 months beginning with the day on which the claim was made;

(b) where there is an enquiry into the claim, or into an amendment of the claim, the day on which the enquiry is completed;

(c) where the claim is amended and there is no enquiry into the amendment, the day on which WRA ceases to have power to enquire into the amendment.

(3) The Welsh Ministers may by regulations—

(a) provide that the records required to be kept and preserved under this section include, or do not include, records of a description prescribed by the regulations;

(b) prescribe descriptions of supporting documents that are required to be kept under this section.

(4) Regulations under this section may make provision by reference to things specified in a notice published by WRA in accordance with the regulations (and not withdrawn by a subsequent notice).

(5) “Supporting documents” includes accounts, books, deeds, contracts, vouchers and receipts.

Preservation of information etc.

70

The duty under section 69 to preserve records may be satisfied—

(a) by preserving them in any form and by any means, or

(b) by preserving the information contained in them in any form and by any means, subject to any conditions or exceptions prescribed by regulations made by the Welsh Ministers.

Amendment of claim by claimant

71

(1) A person who has made a claim under section 62 , 63 or 63A may amend the claim by giving notice to WRA.

(2) No such amendment may be made—

(a) more than 12 months after the day on which the claim was made, or

(b) if WRA issues a notice under section 74, during the period—

(i) beginning with the day on which the notice is issued, and

(ii) ending with the day on which the enquiry under that section is completed.

Correction of claim by WRA

72

(1) WRA may by issuing notice to the claimant amend a claim so as to correct obvious errors or omissions in the claim (whether errors of principle, arithmetical mistakes or otherwise).

(2) No such correction may be made—

(a) more than 9 months after the day on which the claim was made, or

(b) if WRA issues a notice under section 74, during the period—

(i) beginning with the day on which notice is issued, and

(ii) ending with the day on which the enquiry under that section is completed.

(3) A correction under this section has no effect if, within the period of 3 months beginning with the day following that on which the notice of correction is issued, the claimant gives a notice to WRA rejecting the correction.

Giving effect to claims and amendments

73

(1) As soon as practicable after a claim is made, amended or corrected—

(a) WRA must issue notice of its decision to the claimant, and

(b) where WRA decides to give effect to the claim or amendment (whether in part or in full), it must do so by discharge or repayment of WRA-collected tax.

(2) Where WRA enquires into a claim or amendment—

(a) subsection (1) does not apply until a closure notice is issued under section 75, and then it applies subject to section 77, but

(b) WRA may at any time before then give effect to the claim or amendment, on a provisional basis, to such extent as it thinks fit.

Notice of enquiry

74

(1) WRA may enquire into a person's claim or amendment of a claim if it issues to the claimant notice of its intention to do so (a “notice of enquiry”) before the end of the period of 12 months beginning with the day after the day on which the claim or amendment was made.

(2) A claim or amendment that has been the subject of one notice of enquiry may not be the subject of another.

Completion of enquiry

75

(1) An enquiry is completed when WRA issues a notice (a “closure notice”) to the claimant stating—

(a) that the enquiry is complete, and

(b) the conclusions reached in the enquiry.

(2) A closure notice must either—

(a) state that in the opinion of WRA no amendment of the claim is required, or

(b) if in WRA's opinion the claim is insufficient or excessive, amend the claim so as to make good or eliminate the deficiency or excess.

(3) In the case of an enquiry into an amendment of a claim, subsection (2)(b) applies only so far as the deficiency or excess is attributable to the amendment.

Direction to complete enquiry

76

(1) The claimant may make an application to the tribunal for a direction that a closure notice is to be issued within a specified period.

(2) The tribunal must give a direction unless satisfied that WRA has reasonable grounds for not issuing a closure notice within the specified period.

Giving effect to amendments under section 75

77

(1) Within 30 days after the day on which a notice under section 75(2)(b) is issued WRA must give effect to the amendment by making such adjustment as may be necessary, whether⁠—

(a) by way of assessment on the claimant, or

(b) by discharge or repayment of WRA-collected tax.

(2) An assessment made under subsection (1) is not out of time if it is made within the time mentioned in that subsection.

Time limit for making claims

78

A claim under section 62 or 63 must be made within the period of 4 years beginning with the day after the filing date for the tax return to which the payment by way of WRA-collected tax, or the assessment or determination, relates.

The claimant: partnerships

79

(1) This section is about the application of section 63 in a case where either—

(a) (in a case falling within section 63(1)(a)) the person paid the amount in question in the capacity of a partner in a partnership, or

(b) (in a case falling within section 63(1)(b)) the assessment was made on, or the determination related to the liability of, the person in such a capacity.

(2) In such a case, only a relevant person who has been nominated to do so by all of the relevant persons may make a claim under section 63 in respect of the amount in question.

(3) The relevant persons are the persons who would have been liable as partners to pay the amount in question had the payment been due or (in a case falling within section 63(1)⁠(b)) had the assessment or determination been correctly made.

Assessment of claimant in connection with claim

80

(1) This section applies where—

(a) a claim is made under section 63,

(b) the grounds for giving effect to the claim also provide grounds for a WRA assessment on the claimant in respect of the WRA-collected tax, and

(2) In a case falling within section 79(1)(a) or (b), the reference to the claimant in subsection (1)(b) of this section includes any relevant person (as defined in section 79(3)).

(3) The following are relevant restrictions—

(a) section 58;

(b) the end of a time limit for making a WRA assessment.

(4) Where this section applies—

(a) the relevant restrictions are to be disregarded, and

(b) the WRA assessment is not out of time if it is made before the final determination of the claim.

(5) A claim is not finally determined until—

(a) the claim, or

(b) the amount to which it relates,

can no longer be varied (whether on review, appeal or otherwise).

Contract settlements

81

(1) In section 63(1)(a), the reference to an amount paid by a person by way of WRA-collected tax includes an amount paid by a person under a contract settlement in connection with WRA-collected tax believed to be payable.

(1A) In section 63A(1), the reference to repayment of an amount of land transaction tax includes repayment of an amount paid by a person under a contract settlement in connection with that amount of land transaction tax.

(2) The following provisions apply if the person who paid the amount under the contract settlement (“the payer”) and the person by whom the WRA-collected tax was payable (“the taxpayer”) are not the same person.

(3) In relation to a claim under section 63 in respect of that amount—

(a) the references to the claimant in section 67(5), (6) and (8) have effect as if they included the taxpayer, and

(b) the references to the claimant in sections 67(9) and 80(1)(b) have effect as if they were references to the taxpayer.

(4) In relation to a claim under section 63 or 63A in respect of that amount, references to WRA-collected tax in sections 68, 73 and 77 include the amount paid under the contract settlement.

(5) Where the grounds for giving effect to a claim by the payer in respect of the amount also provide grounds for a WRA assessment on the taxpayer in respect of the WRA-collected tax—

(a) WRA may set any amount repayable to the payer as a result of the claim against any amount payable by the taxpayer as a result of the assessment, and

(b) the obligations of WRA and the taxpayer are discharged to the extent of the set-off.

PART 4 — INVESTIGATORY POWERS OF WRA

CHAPTER 1 — INTRODUCTORY

Overview

Overview of Part

82

This Part is arranged as follows—

(a) Chapter 2 sets out WRA's investigatory powers in relation to information and documents,

(b) Chapter 3 sets out restrictions on the powers in Chapter 2,

(d) Chapter 5 sets out further investigatory powers,

(e) Chapter 6 sets out offences in relation to information notices, and

(f) Chapter 7 is about reviews and appeals against certain tribunal approvals of information notices and inspections.

Interpretation

Information notices

83

(1) In this Act, “information notice” means—

(a) a taxpayer notice under section 86,

(b) a third party notice under section 87,

(d) an identification notice under section 92, or

(e) a debtor contact notice under section 93.

(2) An information notice may either specify or describe the information or documents to be provided or produced.

(3) If an information notice is issued with the approval of the tribunal, the notice must state that fact.

Meaning of “tax position”

84

(1) In this Part, “tax position”, in relation to a person, means the person's position as regards any WRA-collected tax, including the person's position as regards—

(a) past, present and future liability to pay any WRA-collected tax,

(b) penalties tax credits, interest (including interest on penalties and amounts payable in respect of tax credits ) and other amounts that have been paid, or are or may be payable, by or to the person in connection with any WRA-collected tax, and

(c) claims or notices that have been or may be made or given in connection with the person's liability to pay any WRA-collected tax or any amount in respect of a tax credit,

and references to a person's position as regards a particular WRA-collected tax (however expressed) are to be interpreted accordingly.

(2) References in this Part to the tax position of a person include references to the tax position of—

(a) an individual who has died, and

(b) a body corporate or unincorporated association that has ceased to exist.

(3) References in this Part to a person's tax position refer to the person's tax position at any time or in relation to any period, unless otherwise stated.

(4) References to checking a person's tax position include references to carrying out an investigation or making an enquiry of any kind.

Meaning of “carrying on a business”

85

(1) In this Part, references to carrying on a business include—

(a) carrying on any activity for the purposes of generating income from land (wherever situated),

(b) carrying on a profession,

(d) the activities of a local authority or any other public authority.

(2) The Welsh Ministers may by regulations provide that for the purposes of this Part—

(a) the carrying on of a specified activity, or

(b) the carrying on of any activity, or a specified activity, by a specified person,

is or is not to be treated as the carrying on of a business.

(3) In this Act, “charity” has the meaning given by paragraph 2A of Schedule 18 to LTTA.

CHAPTER 2 — POWERS TO REQUIRE INFORMATION AND DOCUMENTS

Taxpayer notices

86

(1) WRA may issue a notice (a “taxpayer notice”) requiring a person (“the taxpayer”) to provide information or produce a document if—

(a) WRA requires the information or document for the purpose of checking the taxpayer's tax position,

(b) it is reasonable to require the taxpayer to provide the information or produce the document, and

(c) nothing in sections 97 to 102 prevents WRA from requiring the taxpayer to provide the information or produce the document.

(2) Before issuing a taxpayer notice WRA may (but need not, subject to section 97(2)) apply to the tribunal for approval to issue the notice.

Third party notices

87

(1) WRA may issue a notice (a “third party notice”) requiring a person to provide information or produce a document if—

(a) WRA requires the information or document for the purpose of checking the tax position of another person (“the taxpayer”) whose identity is known to WRA,

(b) it is reasonable to require the person to provide the information or produce the document, and

(c) nothing in sections 97 to 102 prevents WRA from requiring the person to provide the information or produce the document.

(2) But WRA may not issue a third party notice without—

(a) the agreement of the taxpayer, or

(b) the approval of the tribunal.

(3) The taxpayer to whom a third party notice relates must—

(a) be named in the notice, and

(b) be issued with a copy of the notice by WRA.

(4) But when it approves a third party notice, the tribunal may disapply one or both of the requirements of subsection (3) if it is satisfied that WRA has grounds for believing that naming the taxpayer or, as the case may be, issuing the taxpayer with a copy of the notice might seriously prejudice the assessment or collection of WRA-collected tax.

Tribunal approval of taxpayer notices and third party notices

88

(1) WRA may apply to the tribunal for approval to issue a taxpayer notice or a third party notice to a person (“the recipient”) without notice of the application being sent to the recipient.

(2) Where notice of the application for approval is not sent to the recipient, the tribunal may approve the issuing of the taxpayer notice or third party notice only if it is satisfied—

(a) that—

(i) in the case of a taxpayer notice, the requirements of section 86(1), or

(ii) in the case of a third party notice, the requirements of section 87(1),

have been met, and

(b) that sending notice of the application for approval to the recipient might have prejudiced the assessment or collection of WRA-collected tax.

(3) Where the recipient has been notified of the application for approval, the tribunal may approve the issuing of the taxpayer notice or third party notice only if—

(a) it is satisfied that—

(i) in the case of a taxpayer notice, the requirements of section 86(1), or

(ii) in the case of a third party notice, the requirements of section 87(1),

have been met,

(b) the recipient has been told that the information or documents referred to in the taxpayer notice or third party notice are required and has been given a reasonable opportunity to make representations to WRA,

(d) in the case of a third party notice, the taxpayer has been provided with a summary of the reasons why WRA requires the information or documents.

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