PART 8Penalties
CHAPTER 5Other administrative penalties
Penalties for failure to register for tax etc.
I1209Penalty for failure to register for tax etc.
1
A penalty is payable by a person (“P”) where—
a
P fails to comply with a requirement imposed by or under section 22 or 23 of the LT(S) Act 2014 (“a relevant requirement”), and
b
the failure was—
i
deliberate on P's part (“a deliberate failure”), or
ii
careless on P's part (“a careless failure”).
2
A failure is careless if it is due to a failure by P to take reasonable care.
3
A failure by P to comply with a relevant requirement, which was neither deliberate nor careless on P's part at an earlier time, is to be treated as careless if P—
a
discovered the failure at some later time, and
b
did not take reasonable steps to inform Revenue Scotland.
4
Section 210 sets out the penalty under this section.
I2210Amount of penalty for failure to register for tax etc.
1
This section sets out the penalty payable under section 209.
2
For a deliberate failure, the penalty is 100% of the potential lost revenue.
3
For a careless failure, the penalty is 30% of the potential lost revenue.
4
In the case of a relevant requirement relating to Scottish landfill tax, the potential lost revenue is the amount of the tax (if any) for which P is liable for the period—
a
beginning on the date with effect from which P is required in accordance with that requirement to be registered, and
b
ending on the date on which Revenue Scotland received notification of, or otherwise became fully aware of, P's liability to be registered.
5
In calculating potential lost revenue in respect of a failure to comply with a relevant requirement on the part of P no account is to be taken of the fact that a potential loss of revenue from P is or may be balanced by a potential over-payment by another person.