Non-resident taxpayers
Section 26: Appointment of tax representatives
82.This section of the Act gives a regulation-making power to the Scottish Ministers to make provision in order to ensure, where a taxpayer is not resident in the UK, that they arrange for the appointment of a person resident in the UK to act as their representative for the purposes of paying Scottish aggregates tax. Subsection (2) defines a “non-resident taxpayer” as a person who is not resident in the UK and who is registered, or is required to be, for the purposes of the tax (or would be required but for an exemption in regulations made under section 18(5) of the Act). The regulations will be subject to the negative procedure.
83.The regulations may make (but are not limited to) the kinds of provision listed in subsection (3): including a requirement for initial notification by taxpayers of a change in residence status to Revenue Scotland; a requirement for approval by Revenue Scotland of an appointment of a tax representative; and the creation of a process for requesting such approval. Failure to request approval may be penalised by virtue of section 216C of the 2014 Act, as inserted by section 45 of this Act.
Section 27: Effect of appointment of tax representatives
84.This section provides for the effect of the appointment of a tax representative by a taxpayer: they are entitled to act on a non-resident taxpayer’s behalf and must make sure that the taxpayer complies with their legal obligations under the Act in relation to Scottish aggregates tax.
85.In addition, subsection (3) of this section makes a tax representative personally liable in respect of any failure of compliance by the non-resident taxpayer with the requirements of this Act, and imposes joint and several liability on the tax representative and the non-resident taxpayer in respect of any such failure (meaning that each person would be responsible for the full liability for the failure).
86.Subsection (4) clarifies that a tax representative does not themselves have to register for Scottish aggregates tax.
87.Subsection (5) provides that a non-resident taxpayer will themselves be liable in respect of any tax due as a consequence of fraud or error by their tax representative.
Section 28: Definition of “business premises” to exclude premises of tax representatives
88.This section of the Act amends section 141 of the 2014 Act to apply a new definition of “
89.Generally this means premises that a designated officer of Revenue Scotland has reason to believe are used in connection with the carrying on of a business by or on behalf of a person. But in relation to Scottish aggregates tax, it does not include the premises of any tax representative within the meaning of this Act (i.e. the person who in accordance with regulations under section 26 acts as a taxpayer’s representative for the purposes of Scottish aggregates tax).
90.Section 141(3B) of the 2014 Act clarifies that tax representatives may still be specified in regulations by the Scottish Ministers under section 142 of the 2014 Act as “involved third parties” whose business premises may be entered and inspected by designated officers of Revenue Scotland.
