176Suspension of penalty under sections 168 to 173 during currency of agreement for deferred payment
(1)This section applies if—
(a)P fails to pay an amount of tax when it becomes due and payable,
(b)P makes a request to Revenue Scotland that payment of the amount of tax be deferred, and
(c)Revenue Scotland agrees that payment of that amount may be deferred for a period (“the deferral period”).
(2)If P would (ignoring this subsection) become liable, between the date on which P makes the request and the end of the deferral period, to a penalty under sections 168 to 173 for failing to pay that amount, P is not liable to that penalty.
(3)But if—
(a)P breaks the agreement, and
(b)Revenue Scotland serves on P a notice specifying any penalty to which P would become liable (ignoring subsection (2)),
P becomes liable to that penalty at the date of the notice.
(4)P breaks an agreement if—
(a)P fails to pay the amount of tax in question when the deferral period ends, or
(b)the deferral is subject to P complying with a condition (including a condition that part of the amount be paid during the deferral period) and P fails to comply with it.
(5)If the agreement mentioned in subsection (1)(c) is varied at any time by a further agreement between P and Revenue Scotland, this section applies from that time to the agreement as varied.