Explanatory Notes

Revenue Scotland and Tax Powers Act 2014

2014 asp 16

24 September 2014

The Act

Part 8 – Penalties

Chapter 2 — Penalties for Failure to Make Returns Or Pay Tax
Penalties under Chapter 2: general
Section 176 – Suspension of penalty under sections 168 to 173 during currency of agreement for deferred payment

212.This section provides that a person who has failed to pay tax by the due date can make a request to Revenue Scotland to have the payment deferred and Revenue Scotland can then choose whether or not to agree to the deferral of payment for a specified period as well as specifying any conditions of that deferral.

213.If payment is deferred, any penalty the person might have incurred during the specified period for failing to pay tax is not applied. If the person breaks the agreement (by either failing to pay the tax due when the deferral period ends or failing to comply with any condition of that deferral) the person becomes liable for any penalty that Revenue Scotland issues a notice to the person about. If the deferral agreement is further varied the agreement applies until the end of the new agreement.