Chapter 5 – Penalties
Section 39: Failure to make return
110.This section amends section 159 of the 2014 Act, applying the penalty there for the failure to make a tax return by the statutory deadline to Scottish aggregates tax. The applicable deadlines are set in regulations under section 22 of the Act. Sections 164 to 167 of the 2014 Act, as amended by this section of the Act, create a sliding scale for the amount of penalty for failure to submit a return for Scottish aggregates tax.
Section 40: Failure to pay tax
111.This section amends section 168 of the 2014 Act, applying the penalties there for failure to pay tax to Scottish aggregates tax. Subsection (2) of section 168 provides that if a person’s failure to pay tax falls under multiple heads of this provision then the person is liable to a penalty for each separate failure. Sections 170 to 173 of the 2014 Act, as amended by this section of the Act, create a sliding scale for the amount of penalty for failure to pay Scottish aggregates tax.
Section 41: Inaccuracies in taxpayer documents
112.This section amends section 182 of the 2014 Act, applying the penalties there for inaccuracies in taxpayer documents to Scottish aggregates tax: this includes a situation where a taxpayer has amended their tax return under section 83, and claims for repayment under sections 106 to 108. Under section 183 of the 2014 Act, the penalty would be 100% of the potential lost revenue for a deliberate inaccuracy, and 30% of the potential lost revenue for a careless inaccuracy.
Section 42: Failure to register for tax etc.
113.This section substitutes a new provision into section 209 of the 2014 Act on penalties for failure to register for tax, applying these penalties for failure to comply with the duties imposed by section 18 and 22 of the Act: i.e. the duties relating to registration on persons who carry out taxable activities. Under section 210 of the 2014 Act, the penalty would be 100% of the potential lost revenue for a deliberate failure to comply, and 30% of the potential lost revenue for a careless failure to comply.
Section 43: Failure to notify production of exempt aggregate
114.This section inserts a new Chapter 5A into Part 8 of the 2014 Act, creating a new penalty (section 216A) for a failure to notify Revenue Scotland of the production of exempt aggregate under section 20 of the Act. This would be a flat rate penalty of £1,000.
Section 44: Failure to keep records of production of exempt aggregate
115.This section inserts a new section 216B into the 2014 Act, creating a penalty for a failure to keep or preserve records or documents as required under regulations made under section 18(5) of this Act. This would be a flat rate penalty of £1,000.
Section 45: Failure to request approval of tax representative appointment
116.This section inserts a new section 216C into the 2014 Act, creating a penalty in relation to Scottish aggregates tax where a person has failed to seek Revenue Scotland’s approval to appoint a tax representative where required to do so in regulations made under section 26(1) of the Act. This would be a flat rate penalty of £10,000. A defence of reasonable excuse is available, however, as set out in inserted section 216C(3).
Section 46: Failure to notify cessation of eligibility for group treatment or of having place of business in UK
117.This section inserts a new section 216D into the 2014 Act, creating a penalty in relation to Scottish aggregates tax where a person who fails to notify Revenue Scotland, that the person has ceased to be eligible to be treated as part of a group of corporate bodies, as is required under section 30(1) of the Act. This would be a flat rate penalty of £500.
Section 47: Failure to notify change to group treatment application or notification
118.This section inserts a new section 216E into the 2014 Act, creating a penalty in relation to Scottish aggregates tax where a person fails to comply with section 31 of this Act, requiring notification to Revenue Scotland of any changes to group treatment applications or notifications. This would be a flat rate penalty of £250.
Section 48: Failure to provide security
119.This section inserts a new section 216F into the 2014 Act, creating a new penalty for a failure to provide security for payment of Scottish aggregates tax when required to do so by Revenue Scotland under section 36 or 37 of the Act. This would be a flat rate penalty of £20,000.
Section 49: General provisions for penalties relating to Scottish aggregates tax
120.This section inserts a new section 216G into the 2014 Act, providing that liability under the penalty provisions relating to Scottish aggregates tax, as inserted by this Chapter of Part 1 of the Act, will not arise where the taxpayer can show that there is a reasonable excuse for their conduct; section 216G(2) makes further provision on what can and what cannot be claimed as a reasonable excuse for these purposes.
121.In addition, this section inserts a new section 216H into the 2014 Act, making provision about the assessment and payment of penalties under the penalty provisions relating to Scottish aggregates tax. Revenue Scotland is required to assess the penalty and notify the person who is liable and there is then a period of 30 days for payment. The assessment must be made by Revenue Scotland within 12 months of either the person becoming liable to the penalty or Revenue Scotland becoming aware of the person’s liability (whichever is later), and is treated as an assessment to tax for enforcement purposes.
122.This section of the Act also inserts a new section 216I into the 2014 Act, giving the Scottish Ministers a regulation-making power to make changes to the new penalty provisions in Chapter 5A of Part 8 of the 2014 Act, as inserted by this Act. This is consistent with other powers in Part 8. The regulations will be subject to the affirmative procedure.
