Aggregates Tax and Devolved Taxes Administration (Scotland) Act 2024

Chapter 5 Penalties

39 Failure to make return

(1) The Revenue Scotland and Tax Powers Act 2014 is modified as follows.

(2) In section 159 (penalty for failure to make returns)—

(a) in subsection (1), at the end of the table insert—

“3.

Scottish aggregates tax

Return under regulations made under section 23 of the AT(S) Act 2024.”,

(b) in subsection (6), after “item 2” insert “or 3”.

(3) In the italic heading before section 164, after “Scottish landfill tax” insert “and Scottish aggregates tax”.

(4) In section 164 (Scottish landfill tax: first penalty for failure to make return), in subsection (1), after “item 2” insert “or 3”.

(5) The section title of section 164 becomes “Scottish landfill tax and Scottish aggregates tax: first penalty for failure to make return”.

(6) The section title of section 165 becomes “Scottish landfill tax and Scottish aggregates tax: multiple failures to make return”.

(7) The section title of section 166 becomes “Scottish landfill tax and Scottish aggregates tax: 6 month penalty for failure to make return”.

(8) In section 167 (Scottish landfill tax: 12 month penalty for failure to make return), in the section title, after “Scottish landfill tax” insert “and Scottish aggregates tax”.

40 Failure to pay tax

(1) The Revenue Scotland and Tax Powers Act 2014 is modified as follows.

(2) In section 168 (penalty for failure to pay tax)—

(a) in subsection (1), at the end of the table insert—

“3.

Scottish aggregates tax

(a) Amount payable under regulations made under section 23 of the AT(S) Act 2024. (b) Additional amount payable as a result of an adjustment under section 66 of this Act. (c) Additional amount payable as a result of an amendment under section 83 of this Act. (d) Additional amount payable as a result of an amendment under section 87 of this Act. (e) Additional amount payable as a result of an amendment under section 93 of this Act. (f) Amount assessed under section 95 of this Act in the absence of a return. (g) Amount payable as a result of an assessment under section 98 of this Act.

(a), (b), (c), (e) and (g) The date by which the amount must be paid. (d) and (f) The date falling 30 days after the date by which the amount must be paid.”,

(b) in subsection (5), after “item 2” insert “or 3”.

(3) In the italic heading before section 170, after “Scottish landfill tax” insert “and Scottish aggregates tax”.

(4) In section 170 (Scottish landfill tax: first penalty for failure to pay tax), in subsection (1), after “item 2” insert “or 3”.

(5) The section title of section 170 becomes “Scottish landfill tax and Scottish aggregates tax: first penalty for failure to pay tax”.

(6) The section title of section 171 becomes “Scottish landfill tax and Scottish aggregates tax: penalties for multiple failures to pay tax”.

(7) The section title of section 172 becomes “Scottish landfill tax and Scottish aggregates tax: 6 month penalty for failure to pay tax”.

(8) The section title of section 173 becomes “Scottish landfill tax and Scottish aggregates tax: 12 month penalty for failure to pay tax”.

41 Inaccuracies in taxpayer documents

(1) The Revenue Scotland and Tax Powers Act 2014 is modified as follows.

(2) In section 182 (penalty for inaccuracy in taxpayer document)—

(a) in subsection (6), at the end of the table insert—

“3.

Scottish aggregates tax

(a) Return under regulations made under section 23 of the AT(S) Act 2024. (b) Amended return under section 83 of this Act. (c) Claim for repayment under section 106, 107 or 108 of this Act.”,

(b) in subsection (7), for “item 1 or 2” substitute “any item”.

42 Failure to register for tax etc.

(1) The Revenue Scotland and Tax Powers Act 2014 is modified as follows.

(2) In section 209(1) (penalties for failure to register for tax etc.), for paragraph (a) substitute—

“(a) P fails to comply with a requirement imposed by or under any of the following provisions (“a relevant requirement”)—

(i) section 22 or 23 of the LT(S) Act 2014 (registration and information required to keep register up to date),

(ii) section 18 of the AT(S) Act 2024 (duty to register for tax),

(iv) section 22 of the AT(S) Act 2024 (registration: further provision),”.

(3) In section 210(4) (amount of penalty for failure to register for tax etc.), after “landfill tax” insert “or Scottish aggregates tax”.

43 Failure to notify production of exempt aggregate

(1) The Revenue Scotland and Tax Powers Act 2014 is modified as follows.

(2) After section 216 insert—

“Chapter 5A Penalties relating solely to Scottish aggregates tax

216A Penalty for failure to notify Revenue Scotland of production of exempt aggregate: Scottish aggregates tax

(1) This section applies to a person who fails to notify Revenue Scotland, under regulations made under section 20 of the AT(S) Act 2024, of the person’s production of exempt aggregate.

(2) The person is liable to a penalty of £1,000.

(3) Section 211 applies to a penalty under this section as it applies to a penalty under section 209.”.

44 Failure to keep records of production of exempt aggregate

(1) The Revenue Scotland and Tax Powers Act 2014 is modified as follows.

(2) After section 216A (as inserted by section 43(2)) insert—

“216B Failure to keep records of production of exempt aggregate: Scottish aggregates tax

(1) This section applies to a person who fails to keep or preserve records or documents as required under regulations made under section 18(5) of the AT(S) Act 2024.

(2) The person is liable to a penalty of £1,000.”.

45 Failure to request approval of tax representative appointment

(1) The Revenue Scotland and Tax Powers Act 2014 is modified as follows.

(2) After section 216B (as inserted by section 44(2)) insert—

“216C Failure to request approval of tax representative appointment: Scottish aggregates tax

(1) This section applies to a person who—

(a) becomes subject, in accordance with regulations under section 26(1) of the AT(S) Act 2024, to an obligation to request Revenue Scotland’s approval for the appointment of the person’s tax representative, but

(b) fails (with or without making the appointment) to make the request as required by the regulations.

(2) The person is liable to a penalty of £10,000.”.

46 Failure to notify cessation of eligibility for group treatment or of having place of business in UK

(1) The Revenue Scotland and Tax Powers Act 2014 is modified as follows.

(2) After section 216C (as inserted by section 45(2)) insert—

“216D Failure to notify cessation of eligibility for group treatment or of having place of business in UK: Scottish aggregates tax

(1) This section applies to a person who—

(a) fails to notify Revenue Scotland, under section 30(1) of the AT(S) Act 2024, that the person has ceased to be eligible to be treated as a member of a group for the purposes of Part 1 of that Act, or

(b) fails to notify Revenue Scotland, under section 30(2) of the AT(S) Act 2024, that the person has ceased to have an established place of business in the United Kingdom.

(2) The person is liable to a penalty of £500.”.

47 Failure to notify change to group treatment application or notification

(1) The Revenue Scotland and Tax Powers Act 2014 is modified as follows.

(2) After section 216D (as inserted by section 46(2)) insert—

“216E Failure to notify change to group treatment application or notification: Scottish aggregates tax

(1) This section applies to a person who fails to comply with section 31 of the AT(S) Act 2024.

(2) The person is liable to a penalty of £250.”.

48 Failure to provide security

(1) The Revenue Scotland and Tax Powers Act 2014 is modified as follows.

(2) After section 216E (as inserted by section 47(2)) insert—

“216F Penalty for failure to provide security: Scottish aggregates tax

(1) This section applies to a person who fails to comply with a requirement by Revenue Scotland under section 36 or 37 of the AT(S) Act 2024 to provide security for the payment of Scottish aggregates tax.

(2) The person is liable to a penalty of £20,000.”.

49 General provisions for penalties relating to Scottish aggregates tax

(1) The Revenue Scotland and Tax Powers Act 2014 is modified as follows.

(2) After section 216F (as inserted by section 48(2)) insert—

“216G Reasonable excuse for failures under Chapter 5A

(1) If a person (“P”) satisfies Revenue Scotland or (on appeal) the tribunal that there is a reasonable excuse for a failure to comply with a requirement imposed by or under the AT(S) Act 2024 as described in section 216A(1), 216B(1), 216C(1), 216D(1), 216E(1) or 216F(1), liability to a penalty does not arise in relation to that failure.

(2) For the purposes of subsection (1)—

(a) an insufficiency of funds is not a reasonable excuse unless attributable to events outside P's control,

(b) where P relies on any other person to do anything, that is not a reasonable excuse unless P took reasonable care to avoid the failure, and

(c) where P had a reasonable excuse for the failure but the excuse has ceased, P is to be treated as having continued to have the excuse if the failure is remedied without unreasonable delay after the excuse ceased.

216H Assessment of penalties under Chapter 5A

(1) If a person becomes liable to a penalty under this Chapter, Revenue Scotland must—

(a) assess the penalty, and

(b) notify the person.

(2) A penalty under this Chapter must be paid before the end of the period of 30 days beginning with the day on which the notification of the penalty is issued.

(3) An assessment of a penalty under this Chapter—

(a) is to be treated for enforcement purposes as an assessment to tax, and

(b) may be combined with an assessment to tax.

(4) An assessment of a penalty under this Chapter must be made within the period of 12 months beginning with whichever is the later of—

(a) the date on which the person became liable to the penalty, or

(b) the date on which Revenue Scotland first became aware of the person’s liability to the penalty.

216I Power to change penalty provisions in Chapter 5A

(1) The Scottish Ministers may by regulations make provision (or further provision) about penalties under this Chapter.

(2) Provision under subsection (1) includes provision—

(a) about the circumstances in which a penalty is payable,

(b) about the amounts of penalties,

(c) about the procedure for issuing penalties,

(d) about appealing penalties,

(e) about enforcing penalties.

(3) Regulations under subsection (1) may not create criminal offences.

(4) Regulations under subsection (1) may modify any enactment (including this Act).

(5) Regulations under subsection (1) do not apply to a failure which began before the date on which the regulations come into force.”.

(3) In section 254 (subordinate legislation), in subsection (3), after paragraph (l) insert—

“(la) section 216I(1),”.