Revenue Scotland and Tax Powers Act 2014

Penalty for failure to notify under-assessment

186 Penalty 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.