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Revenue Scotland and Tax Powers Act 2014

  • Explanatory Notes Table of contents

Please note:

All reference to 'Parts' and 'sections' are from the Revenue Scotland and Tax Powers Act 2014. For other versions of these Explanatory Notes, see More Resources.

  1. Introduction

  2. Background

  3. The Act

    1. Overview

    2. Part 1 – Overview of Act

    3. Part 2 - Revenue Scotland

      1. Establishment of Revenue Scotland

        1. Section 2 – Revenue Scotland

      2. Functions of Revenue Scotland

        1. Section 3 – Functions of Revenue Scotland

      3. Delegation of functions by Revenue Scotland

        1. Section 4 – Delegation of functions by Revenue Scotland

      4. Money

        1. Section 5 – Payments into the Scottish Consolidated Fund

        2. Section 6 – Rewards

      5. Independence of Revenue Scotland

        1. Section 7 – Independence of Revenue Scotland

      6. Ministerial guidance

        1. Section 8 – Ministerial guidance

      7. Provision of information, advice or assistance to Ministers

        1. Section 9 – Provision of information, advice or assistance to the Scottish Ministers

      8. Charter of standards and values

        1. Section 10 – Charter of standards and values

      9. Corporate plan

        1. Section 11 – Corporate plan

      10. Annual report

        1. Section 12 – Annual report

    4. Part 3 – Information

      1. Use of information by Revenue Scotland etc.

        1. Section 13 – Use of information by Revenue Scotland and other persons

      2. Protected taxpayer information

        1. Section 14 – Protected taxpayer information

        2. Section 15 – Confidentiality of protected taxpayer information

        3. Section 16 – Protected taxpayer information: declaration of confidentiality

      3. Other limits on use and disclosure of information

        1. Section 17 – Disclosure of information prohibited or restricted by statute or agreement

        2. Section 18 – Protected taxpayer information: use by the Keeper

      4. Offence of wrongful disclosure

        1. Section 19 – Wrongful disclosure of protected taxpayer information

    5. Part 4 – the Scottish Tax Tribunals

      1. Chapter 1 — Introductory

        1. Section 20 – Overview

      2. Chapter 2 — Establishment and Leadership

        1. Establishment

          1. Section 21 – The First-tier Tax Tribunal for Scotland and the Upper Tax Tribunal for Scotland

        2. Leadership

          1. Section 22 – President of the Tax Tribunals

          2. Section 23 – Functions of the President of the Tax Tribunals

          3. Section 24 – Business arrangements

          4. Section 25 – Temporary President

      3. Chapter 3 — Membership

        1. Membership of Tax Tribunals

          1. Section 26 – Members

        2. Judicial members

          1. Section 27 – Judicial members

        3. Status and capacity

          1. Section 28 – Status and capacity of members

      4. Chapter 4 — Decision-Making and Composition

        1. Decision-making and composition: general

          1. Section 29 – Decisions in the First-tier Tribunal

          2. Section 30 – Decisions in the Upper Tribunal

          3. Section 31 – Composition of the Tribunals

        2. Decision by two or more members

          1. Section 32 – Voting for decisions

          2. Section 33 – Chairing members

      5. Chapter 5 — Appeal of Decisions

        1. Appeal from First-tier Tribunal

          1. Section 34 – Appeal from the First-tier Tribunal

          2. Section 35 – Disposal of an appeal under section 34

        2. Appeal from Upper Tribunal

          1. Section 36 – Appeal from the Upper Tribunal

          2. Section 37 – Disposal of an appeal under section 36

          3. Section 38 – Procedure on second appeal

        3. Further provision on permission to appeal

          1. Section 39 – Process for permission

      6. Chapter 6 — Special Jurisdiction

        1. Section 40 – Judicial review cases

        2. Section 41 – Procedural steps where petition remitted

        3. Section 42 – Decision on remittal

        4. Section 43 – Additional matters

        5. Section 44 – Meaning of judicial review

      7. Chapter 7 — Powers and Enforcement

        1. Section 45 – Venue for hearings

        2. Section 46 – Conduct of cases

        3. Section 47 – Enforcement of decisions

        4. Section 48 – Award of expenses

        5. Section 49 – Additional powers

        6. Section 50 – Offences in relation to proceedings

      8. Chapter 8 — Practice and Procedure

        1. Tribunal rules: general

          1. Section 51 – Tribunal rules

          2. Section 52 – Exercise of functions

          3. Section 53 – Extent of rule-making

        2. Particular matters

          1. Section 54 – Proceedings and steps

          2. Section 55 – Hearings in cases

          3. Section 56 – Evidence and decisions

        3. Issuing directions

          1. Section 57 – Practice directions

      9. Chapter 9 — Administration

        1. Section 58 – Administrative support

        2. Section 59 – Guidance

        3. Section 60 – Annual reporting

      10. Chapter 10 — Interpretation

        1. Section 61 – Interpretation

    6. Part 5 – the General Anti-Avoidance Rule

      1. Introductory

        1. Section 62 – The general anti-avoidance rule: introductory

      2. Artificial tax avoidance arrangements

        1. Section 63 – Tax avoidance arrangements

        2. Section 64 – Meaning of “artificial”

        3. Section 65 – Meaning of “tax advantage”

      3. Counteracting tax advantages

        1. Section 66 – Counteracting tax advantages

        2. Section 67 – Proceedings in connection with the general anti-avoidance rule

        3. Section 68 – Notice to taxpayer of proposed counteraction of tax advantage

        4. Section 69 – Final notice to taxpayer of counteraction of tax advantage

        5. Section 70 – Counteraction of tax advantages: payment of tax charged etc.

        6. Section 71 – Assumption of tax advantage

      4. General anti-avoidance rule: commencement and transitional provision

        1. Section 72 – General anti-avoidance rule: commencement and transitional provision

    7. Part 6 – Tax Returns, Enquiries and Assessments

      1. Chapter 1 — Overview

        1. Section 73 – Overview

      2. Chapter 2 — Taxpayer Duties to Keep and Preserve Records

        1. Duties to keep records

          1. Section 74 – Duty to keep and preserve records

          2. Section 75 – Preservation of information etc.

        2. Penalties for failing to keep and preserve records

          1. Section 76 – Penalty for failure to keep and preserve records

          2. Section 77 – Reasonable excuse for failure to keep and preserve records

          3. Section 78 – Assessment of penalties under section 76

          4. Section 79 – Enforcement of penalties under section 76

          5. Section 80 – Power to change penalty provisions in sections 76 to 79

        3. Duty to keep and preserve records: further provision

          1. Section 81 – Further provision: land and buildings transaction tax

      3. Chapter 3 — Tax Returns

        1. Filing dates

          1. Section 82 – Dates by which tax returns must be made

        2. Amendment and correction of returns

          1. Section 83 – Amendment of return by taxpayer

          2. Section 84 – Correction of return by Revenue Scotland

      4. Chapter 4 — Revenue Scotland Enquiries

        1. Notice and scope of enquiry

          1. Section 85 – Notice of enquiry

          2. Section 86 – Scope of enquiry

        2. Amendment of return during enquiry

          1. Section 87 – Amendment of self-assessment during enquiry to prevent loss of tax

        3. Referral during enquiry

          1. Section 88 – Referral of questions to appropriate tribunal during enquiry

          2. Section 89 – Withdrawal of notice of referral

          3. Section 90 – Effect of referral on enquiry

          4. Section 91 – Effect of determination

          5. Section 92 – “Appropriate tribunal”

        4. Completion of enquiry

          1. Section 93 – Completion of enquiry

          2. Section 94 – Direction to complete enquiry

      5. Chapter 5 — Revenue Scotland Determinations

        1. Section 95 – Determination of tax chargeable if no return made

        2. Section 96 – Determination to have effect as a self-assessment

        3. Section 97 – Determination superseded by actual self-assessment

      6. Chapter 6 — Revenue Scotland Assessments

        1. Assessment of loss of tax or of excessive repayments

          1. Section 98 – Assessment where loss of tax

          2. Section 99 – Assessment to recover excessive repayment of tax

          3. Section 100 – References to “Revenue Scotland assessment”

          4. Section 101 – References to the “taxpayer”

        2. Conditions for making Revenue Scotland assessments

          1. Section 102 – Conditions for making Revenue Scotland assessments

          2. Section 103 – Time limits for Revenue Scotland assessments

          3. Section 104 – Losses brought about carelessly or deliberately

        3. Notice of assessment and other procedure

          1. Section 105 – Assessment procedure

      7. Chapter 7 — Relief in Case of Excessive Assessment Or Overpaid Tax

        1. Double assessment

          1. Section 106 – Relief in case of double assessment

        2. Overpaid tax etc.

          1. Section 107 – Claim for relief for overpaid tax etc.

        3. Order changing tax basis not approved

          1. Section 108 – Claim for repayment if order changing tax basis not approved

        4. Defence of unjustified enrichment

          1. Section 109 – Defence to certain claims for relief under section 107 or 108

          2. Section 110 – Unjustified enrichment: further provision

          3. Section 111 – Unjustified enrichment: reimbursement arrangements

          4. Section 112 – Reimbursement arrangements: penalties

        5. Other defences to claims

          1. Section 113 – Cases in which Revenue Scotland need not give effect to a claim

        6. Procedure for making claims

          1. Section 114 – Procedure for making claims etc.

          2. Section 115 – Time-limit for making claims

          3. Section 116 – The claimant: partnerships

          4. Section 117 – Assessment of claimant in connection with claim

        7. Contract settlements

          1. Section 118 – Contract settlements

    8. Part 7 – Investigatory Powers of Revenue Scotland

      1. Chapter 1 — Investigatory Powers: Introductory

        1. Overview

          1. Section 119 – Investigatory powers of Revenue Scotland: overview

        2. Interpretation

          1. Section 120 – Meaning of “tax position”

          2. Section 121 – Meaning of “carrying on a business”

          3. Section 122 – Meaning of “statutory records”

      2. Chapter 2 — Investigatory Powers: Information and Documents

        1. Section 123 – Power to obtain information and documents from taxpayer

        2. Section 124 – Power to obtain information and documents from third party, section 125 – Approval of taxpayer notices and third party notices and section 126 – Copying third party notice to taxpayer

        3. Section 127 – Power to obtain information and documents about persons whose identity is not known

        4. Section 128 – Third party notices and notices under section 127: groups of undertakings

        5. Section 129 – Third party notices and notices under section 127: partnerships

        6. Section 130 – Power to obtain information about persons whose identity can be ascertained

        7. Section 131 – Notices

        8. Section 132 – Complying with information notices

        9. Section 133 – Producing copies of documents

        10. Section 134 – Further provision about powers relating to information notices

      3. Chapter 3 — Restrictions on Powers in Chapter 2

        1. Section 135 – Information notices: general restrictions

        2. Section 136 – Types of information

        3. Section 137 – Taxpayer notices following a tax return

        4. Section 138 – Protection for privileged communications between legal advisers and clients

        5. Section 139 – Protection for auditors

        6. Section 140 – Auditors: supplementary

      4. Chapter 4 — Investigatory Powers: Premises and Other Property

        1. Inspection of business premises

          1. Section 141 – Power to inspect business premises

          2. Section 142 – Powers to inspect business premises of involved third parties

          3. Section 143 – Carrying out inspections under section 141 or 142

          4. Section 144 – Carrying out inspections under section 141 or 142: further provision

        2. Inspection for valuation etc.

          1. Section 145 – Power to inspect property for valuation etc. and section 146 – Carrying out of inspections under section 145

        3. Approval of tribunal for premises inspections

          1. Section 147 – Approval of tribunal for premises inspections

        4. Other powers in relation to premises

          1. Section 148 – Power to mark assets and to record information

        5. Restriction on inspection of documents

          1. Section 149 – Restriction on inspection of documents

      5. Chapter 5 — Further Investigatory Powers

        1. Section 150 – Power to copy and remove documents

        2. Section 151 – Computer records

      6. Chapter 6 — Reviews and Appeals Against Information Notices

        1. Section 152 – Review or appeal against information notices

        2. Section 153 – Power to modify section 152

        3. Section 154 – Disposal of reviews and appeals in relation to information notices

      7. Chapter 7 — Offences Relating to Information Notices

        1. Section 155 (Offence of concealing etc. documents following information notice) and Section 156 (Offence of concealing etc. documents following information notification)

    9. Part 8 – Penalties

      1. Chapter 1 — Penalties: Introductory

        1. Overview

          1. Section 157 – Penalties: overview

        2. Double jeopardy

          1. Section 158 – Double jeopardy

      2. Chapter 2 — Penalties for Failure to Make Returns Or Pay Tax

        1. Penalty for failure to make returns

          1. Section 159 – Penalty for failure to make returns

        2. Amounts of penalties: land and buildings transaction tax

          1. Sections 160 to 163 – Land and buildings transaction tax: first penalty for failure to make return; 3 month penalty for failure to make return; 6 month penalty for failure to make return; 12 month penalty for failure to make return

        3. Amounts of penalties: Scottish landfill tax

          1. Sections 164 to 167 – Scottish landfill tax: first penalty for failure to make return; multiple failures to make return; 6 month penalty for failure to make return; 12 month penalty for failure to make return

        4. Penalties for failure to pay tax

          1. Section 168 – Failure to pay tax

          2. Section 169 – Land and buildings transaction tax: amounts of penalties for failure to pay tax

          3. Sections 170 to 173 – Scottish landfill tax: first penalty for failure to pay tax; penalties for multiple failures to pay tax; 6 month penalty for failure to pay tax; 12 month penalty for failure to pay tax

        5. Penalties under Chapter 2: general

          1. Section 174 – Interaction of penalties under Chapter 2 with other penalties

          2. Section 175 – Reduction in penalty under sections 159 to 167 for disclosure

          3. Section 176 – Suspension of penalty under sections 168 to 173 during currency of agreement for deferred payment

          4. Section 177 – Special reduction in penalty under Chapter 2

          5. Section 178 – Reasonable excuse for failure to make return or pay tax

          6. Section 179 – Assessment of penalties under Chapter 2

          7. Section 180 – Time limit for assessment of penalties under Chapter 2

          8. Section 181 – Power to change penalty provisions in Chapter 2

      3. Chapter 3 — Penalties Relating to Inaccuracies

        1. Section 182 – Penalty for inaccuracy in taxpayer document

        2. Section 183 – Amount of penalty for error in taxpayer document

        3. Section 184 – Suspension of penalty for careless inaccuracy under section 182

        4. Section 185 – Penalty for inaccuracy in taxpayer document attributable to another person

        5. Section 186 – Under-assessment by Revenue Scotland

        6. Section 187 – Potential lost revenue: normal rule, section 188 – Potential lost revenue: multiple errors, section 189 – Potential lost revenue: losses and section 190 – Potential lost revenue: delayed tax

        7. Section 191 – Special reduction in penalty under this Chapter

        8. Section 192 – Reduction in penalty under this Chapter for disclosure

        9. Section 193 – Assessment of penalties under this Chapter

        10. Section 194 – Power to change penalty provisions in Chapter 3

      4. Chapter 4 — Penalties Relating to Investigations

        1. Section 195 – Penalties for failure to comply or obstruction

        2. Section 196 – Daily default penalties for failure to comply or obstruction

        3. Section 197 – Penalties for inaccurate information or documents

        4. Section 198 – Concealing, destroying etc. documents following information notice

        5. Section 199 – Concealing, destroying etc. documents following information notification

        6. Section 200 – Failure to comply with time limit

        7. Section 201 – Reasonable excuse for failure to comply or obstruction

        8. Section 202 – Assessment of penalties under sections 195, 196 and 197

        9. Section 203 – Enforcement of penalties under sections 195, 196 and 197

        10. Section 204 – Increased daily default penalty

        11. Section 205 – Enforcement of increased daily default penalty

        12. Section 206 – Tax-related penalty

        13. Section 207 – Enforcement of tax-related penalty

        14. Section 208 – Power to change penalty provisions in Chapter 4

      5. Chapter 5 — Other Administrative Penalties

        1. Section 209 – Penalty for failure to register for tax etc.

        2. Section 210 – Amount of penalty for failure to register for tax etc.

        3. Section 211 – Interaction of penalties under section 209 with other penalties

        4. Section 212 – Reduction in penalty under section 209 for disclosure

        5. Section 213 – Special reduction in penalty under section 209

        6. Section 214 – Reasonable excuse for failure to register for tax etc.

        7. Section 215 – Assessment of penalties under section 209

        8. Section 216 – Power to change penalty provisions in Chapter 5

    10. Part 9 – Interest on Payments Due to Or by Revenue Scotland

      1. Section 217 – Interest on unpaid tax

      2. Section 218 – Interest on penalties

      3. Section 219 – Interest on repayment of tax overpaid etc.

      4. Section 220 – Rates of interest

    11. Part 10 – Enforcement of Payment of Tax

      1. Chapter 1 — Enforcement: General

        1. Issue of tax demands and receipts

          1. Section 221 – Issue of tax demands and receipts

        2. Fees for payment

          1. Section 222 – Fees for payment

        3. Certification of matters by Revenue Scotland

          1. Section 223 – Certification of matters by Revenue Scotland

        4. Court proceedings

          1. Section 224 – Court proceedings

        5. Summary warrant

          1. Section 225 – Summary warrant

        6. Recovery of penalties and interest

          1. Section 226 – Recovery of penalties and interest

      2. Chapter 2 — Enforcement: Powers to Obtain Contact Details for Debtors

        1. Section 227 – Requirement for contact details for debtor

        2. Section 228 – Power to obtain details

        3. Section 229 – Reviews and appeals against notices or requirements

        4. Section 230 – Power to modify section 229

        5. Section 231 – Penalty

    12. Part 11 – Reviews and Appeals

      1. Chapter 1 — Introductory

        1. Overview

          1. Section 232 – Overview

        2. Appealable decisions

          1. Section 233 – Appealable decisions

      2. Chapter 2 — Reviews

        1. Review of appealable decisions

          1. Section 234 – Right to request review

          2. Section 235 – Notice of review

          3. Section 236 – Late notice of review

          4. Section 237 – Duty of Revenue Scotland to carry out review

          5. Section 238 – Nature of review etc.

          6. Section 239 – Notification of conclusions of review

          7. Section 240 – Effect of conclusions of review

      3. Chapter 3 — Appeals

        1. Section 241 – Right of appeal

        2. Section 242 – Notice of appeal

        3. Section 243 – Late notice of appeal

        4. Section 244 – Disposal of appeal

      4. Chapter 4 — Supplementary

        1. Section 245 – Reviews and appeals not to postpone recovery of tax

        2. Section 246 – Settling matters in question by agreement

        3. Section 247 – Application of this Part to joint buyers

        4. Section 248 – Application of this Part to trustees

        5. Section 249 – References to the “tribunal”

        6. Section 250 – Interpretation

        7. Section 251 – Communications from taxpayers to Revenue Scotland

    13. Part 12 – Final Provisions

      1. Interpretation

        1. Section 252 – General interpretation

        2. Section 253 – Index of defined expressions

      2. Subordinate legislation

        1. Section 254 – Subordinate legislation

      3. Ancillary provision

        1. Section 255 – Ancillary provision

      4. Modifications of enactments

        1. Section 256 – Minor and consequential modifications of enactments

      5. Crown application

        1. Section 257 – Crown application: criminal offences

        2. Section 258 – Crown application: powers of entry

        3. Section 259 – Crown application: Her Majesty

      6. Commencement and short title

        1. Section 260 – Commencement

        2. Section 261 – Short title

    14. Schedule 1 – Revenue Scotland

      1. Revenue Scotland

        1. Membership

        2. Disqualification

        3. Removal of members

        4. Remuneration and expenses

        5. Committees

        6. Procedure

        7. Internal delegation by Revenue Scotland

        8. Chief Executive and other staff

        9. Powers

    15. Schedule 2 – the Scottish Tax Tribunals

      1. Part 1 – Appointment of members

        1. President of the Tax Tribunals: eligibility for appointment

        2. First-tier Tribunal: ordinary members

        3. First-tier Tribunal: legal members

        4. Upper Tribunal: legal members

        5. Disqualification from office

        6. Eligibility under regulations

      2. Part 2 – Conditions of membership etc.

        1. Application of this Part

        2. Initial period of office

        3. Reappointment

        4. Appointment to position of President

        5. Termination of appointment

        6. Pensions etc.

        7. Oaths

        8. Other conditions

      3. Part 3 - Conduct and discipline

        1. Application of this Part

        2. Conduct rules

        3. Reprimand etc.

        4. Suspension of membership

        5. Judicial Complaints Reviewer

      4. Part 4 – Fitness and removal

        1. Application of this Part

        2. Constitution and procedure

        3. Composition and remuneration

        4. Proceedings before fitness assessment tribunal

        5. Suspension during investigation

        6. Report and removal

        7. Application of this Part to the President of the Tax Tribunals

        8. Interpretation

    16. Schedule 3 – Claims for Relief from Double Assessment and for Repayment

      1. Introduction

      2. Making of claims

      3. Duty to keep and preserve records

      4. Preservation of information etc.

      5. Penalty for failure to keep and preserve records

      6. Reasonable excuse for failure to keep and preserve records

      7. Assessment of penalties under paragraph 5

      8. Enforcement of penalties under paragraph 5

      9. Power to change penalty provisions in paragraphs 5 to 8

      10. Amendment of claim by claimant

      11. Correction of claim by Revenue Scotland

      12. Giving effect to claims and amendments

      13. Notice of enquiry

      14. Completion of enquiry

      15. Direction to complete enquiry

      16. Giving effect to amendments under paragraph 14

      17. Appeals against amendments under paragraph 14

    17. Schedule 4 – Minor and Consequential Modifications

    18. Schedule 5 – Index of Defined Expressions

  4. Parliamentary History

  • Explanatory Notes Table of contents

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