PART 8Penalties
CHAPTER 3Penalties relating to inaccuracies
Penalty for failure to notify under-assessment
186Penalty for failure to notify under-assessment
(1)
A penalty is payable by a person (“P”) where—
(a)
a Revenue Scotland assessment understates P's liability to a devolved tax, and
(b)
P has failed to take reasonable steps to notify Revenue Scotland, within the period of 30 days beginning with the date of the assessment, that it is an under-assessment.
(2)
In deciding what steps (if any) were reasonable, Revenue Scotland must consider—
(a)
whether P knew, or should have known, about the under-assessment, and
(b)
what steps it would have been reasonable to take to notify Revenue Scotland.
(3)
The penalty payable under this section is 30% of the potential lost revenue.
(4)
In this section—
(a)
“Revenue Scotland assessment” includes “Revenue Scotland determination”, and
(b)
accordingly, references to an under-assessment include an under-determination.