# Revenue Scotland and Tax Powers Act 2014

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# Revenue Scotland and Tax Powers Act 2014

# 2014 asp 16                     

The Bill for this Act of the Scottish Parliament was passed by the Parliament on 19th August 2014 and received Royal Assent                        on 24th September 2014                     

An Act of the Scottish Parliament to establish Revenue Scotland; to establish Scottish tax tribunals; to put in place a general                        anti-avoidance rule; to make provision about the collection and management of devolved taxes; and for connected purposes.                     

## **PART 1**SOverview of Act

### 1Overview of ActS

This Act is arranged as follows—
          -  Part 2 establishes Revenue Scotland and provides for its general functions and responsibilities, 
          -  Part 3 makes provision about the use and protection of taxpayer and other information, 
          -  Part 4 establishes the Scottish Tax Tribunals, 
          -  Part 5 puts in place a general anti-avoidance rule, 
          -  Part 6 contains provisions on the self-assessment system, the checking of tax returns by Revenue Scotland and claims for repayment                           of tax,                         
          -  Part 7 makes provision for Revenue Scotland's investigatory powers, 
          -  Part 8 sets out the matters in relation to which penalties may be imposed, 
          -  Part 9 makes provision about the interest payable on unpaid tax, on penalties and on tax repayments, 
          -  Part 10 contains provisions on debt enforcement by Revenue Scotland, 
          -  Part 11 sets out the system for the review, mediation and appeal of Revenue Scotland decisions, and 
          -  Part 12 contains general and final provisions. 

## **PART 2**SRevenue Scotland

### Establishment of Revenue ScotlandS

#### 2Revenue ScotlandS

(1)There is established a body corporate to be known as Revenue Scotland.                  

(2)In Gaelic, Revenue Scotland is to be known as Teachd-a-steach Alba.                  

(3)Schedule 1 makes further provision about the membership, procedures and staffing of Revenue Scotland.                  

### Functions of Revenue ScotlandS

#### 3Functions of Revenue ScotlandS

(1)Revenue Scotland's general function is the collection and management of the devolved taxes.                  

(2)Revenue Scotland has the following particular functions—                  

(a)providing information, advice and assistance to the Scottish Ministers relating to tax,                  

(b)providing information and assistance to taxpayers, their agents and other persons relating to the devolved taxes,                  

(c)efficiently resolving disputes relating to the devolved taxes (including by mediation),                  

(d)protecting the revenue against tax fraud and tax avoidance.                  

(3)“Devolved taxes” has the meaning given by section 80A(4) of the Scotland Act 1998 (c.46).                  

### Delegation of Revenue Scotland functionsS

#### 4Delegation of functions by Revenue ScotlandS

(1)Revenue Scotland may delegate—                  

(a)any of its functions relating to land and buildings transaction tax to the Keeper of the Registers of Scotland (“the Keeper”),                  

(b)any of its functions relating to Scottish landfill tax to the Scottish Environment Protection Agency (“SEPA”).                  

(2)Revenue Scotland may give directions to the Keeper or to SEPA as to how a delegated function is to be exercised and the Keeper                        and SEPA must comply with any such direction.                  

(3)Delegations or directions under this section may be varied or revoked at any time.                  

(4)Revenue Scotland must publish information about—                  

(a)delegations under this section, and                  

(b)directions given under this section.                  

(5)Revenue Scotland must lay before the Scottish Parliament a copy of information published under subsection (4).                  

(6)Subsections (4) and (5) do not apply to the extent that Revenue Scotland considers that publication of the information would                        prejudice the effective exercise of its functions.                  

(7)Delegation of a function under this section does not affect—                  

(a)Revenue Scotland's ability to exercise that function,                  

(b)Revenue Scotland's responsibility for that function.                  

(8)Revenue Scotland may reimburse the Keeper or SEPA for any expenditure incurred which is attributable to the exercise by the                        Keeper or SEPA of functions delegated under this section.                  

### MoneyS

#### 5Payments into the Scottish Consolidated FundS

(1)Revenue Scotland must pay money received in the exercise of its functions into the Scottish Consolidated Fund.                  

(2)But Revenue Scotland may do so after deduction of payments in connection with repayments, including payments of interest on—                  

(a)repayments, or                  

(b)payments treated as repayments.                  

#### 6RewardsS

Revenue Scotland may pay a reward to a person in return for a service which relates to a function of Revenue Scotland.

### Independence of Revenue ScotlandS

#### 7Independence of Revenue ScotlandS

(1)The Scottish Ministers must not—                  

(a)give directions relating to, or                  

(b)otherwise seek to control,                  

the exercise by Revenue Scotland of its functions.

(2)This section is subject to any contrary provision made by or under this Act or any other enactment.                  

### Ministerial guidanceS

#### 8Ministerial guidanceS

(1)The Scottish Ministers may give guidance to Revenue Scotland about the exercise of its functions.                  

(2)Revenue Scotland must have regard to any guidance given by Ministers.                  

(3)Ministers must publish any guidance given to Revenue Scotland under this section as they consider appropriate.                  

(4)The Scottish Ministers must lay before the Scottish Parliament a copy of guidance published under subsection (3).                  

(5)Subsections (3) and (4) do not apply to the extent that Ministers consider that publication of the guidance would prejudice                        the effective exercise by Revenue Scotland of its functions.                  

### Provision of information, advice or assistance to MinistersS

#### 9Provision of information, advice or assistance to the Scottish MinistersS

(1)Revenue Scotland must provide the Scottish Ministers with such information, advice or assistance relating to its functions                        as Ministers may from time to time require.                  

(2)The information, advice or assistance must be provided in such form as Ministers determine.                  

### Charter of standards and valuesS

#### 10Charter of standards and valuesS

(1)Revenue Scotland must prepare a Charter.                  

(2)The Charter must include—                  

(a)standards of behaviour and values which Revenue Scotland is expected to adhere to when dealing with taxpayers, their agents                        and other persons in the exercise of its functions, and                  

(b)standards of behaviour and values which Revenue Scotland expects taxpayers, their agents and other persons to adhere to when                        dealing with Revenue Scotland.                  

(3)Revenue Scotland must—                  

(a)publish the Charter as it considers appropriate,                  

(b)review the Charter from time to time, and                  

(c)revise the Charter when it considers it appropriate to do so.                  

(4)Before publishing or revising the Charter, Revenue Scotland must consult such persons as it considers appropriate.                  

(5)Revenue Scotland must lay the first Charter and any revised Charter before the Scottish Parliament.                  

### Corporate planS

#### 11Corporate planS

(1)Revenue Scotland must, before the beginning of each planning period, prepare a corporate plan and submit it for approval by                        the Scottish Ministers.                  

(2)The corporate plan must set out—                  

(a)Revenue Scotland's main objectives for the planning period,                  

(b)the outcomes by reference to which the achievement of the main objectives may be measured, and                  

(c)the activities which Revenue Scotland expects to undertake during the planning period.                  

(3)Ministers may approve the corporate plan subject to such modifications as may be agreed between them and Revenue Scotland.                  

(4)If Ministers approve a corporate plan, Revenue Scotland must—                  

(a)publish the plan as Revenue Scotland considers appropriate, and                  

(b)lay a copy of the plan before the Scottish Parliament.                  

(5)During the planning period to which a corporate plan relates, Revenue Scotland may review the plan and submit a revised corporate                        plan to Ministers for approval.                  

(6)Subsections (2) to (4) apply to a revised corporate plan as they apply to a corporate plan.                  

(7)“Planning period” means—                  

(a)a first period specified by the Scottish Ministers by order, and                  

(b)each subsequent period of 3 years.                  

(8)The Scottish Ministers may by order substitute for the period for the time being specified in subsection (7)(b) such other                        period as they consider appropriate.                  

### Annual reportS

#### 12Annual reportS

(1)As soon as possible after the end of each financial year, Revenue Scotland must—                  

(a)prepare and publish a report on the exercise of its functions during that year,                  

(b)send a copy of the report to the Scottish Ministers, and                  

(c)lay a copy of the report before the Scottish Parliament.                  

(2)“Financial year” means—                  

(a)the period beginning with the establishment of Revenue Scotland and ending on 31 March in the following year, and                  

(b)each subsequent period of a year ending on 31 March.                  

(3)Revenue Scotland may publish such other reports and information on matters relevant to its functions as it considers appropriate.                  

## **PART 3**SInformation

### Use of information by Revenue Scotland etc.S

#### 13Use of information by Revenue Scotland and other personsS

### Protected taxpayer informationS

#### 14Protected taxpayer informationS

#### 15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 16Protected taxpayer information: declaration of confidentialityS

### Other limits on use and disclosure of informationS

#### 17Disclosure of information prohibited or restricted by statute or agreementS

#### 18Protected taxpayer information: use by the KeeperS

### Offence of wrongful disclosureS

#### 19Wrongful disclosure of protected taxpayer informationS

## **PART 4**SThe Scottish Tax Tribunals

### CHAPTER 1SIntroductory

#### 20. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### CHAPTER 2SEstablishment and leadership

#### EstablishmentS

##### 21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### LeadershipS

##### 22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

##### 23. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

##### 24. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

##### 25. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### CHAPTER 3SMembership

#### Membership of Tax TribunalsS

##### 26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### Judicial membersS

##### 27. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### Status and capacityS

##### 28. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### CHAPTER 4SDecision-making and composition

#### Decision-making and composition: generalS

##### 29. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

##### 30. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

##### 31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### Decisions by two or more membersS

##### 32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

##### 33. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### CHAPTER 5SAppeal of decisions

#### Appeal from First-tier TribunalS

##### 34. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

##### 35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### Appeal from Upper TribunalS

##### 36. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

##### 37. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

##### 38. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### Further provision on permission to appealS

##### 39. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### CHAPTER 6SSpecial jurisdiction

#### 40. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 41Procedural steps where petition remittedS

#### 42. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 43. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 44. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### CHAPTER 7SPowers and enforcement

#### 45. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 46. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 47. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 48. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 49. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 50. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### CHAPTER 8SPractice and procedure

#### Tribunal rules: generalS

##### 51. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

##### 52. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

##### 53. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### Particular mattersS

##### 54. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

##### 55. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

##### 56. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### Issuing directionsS

##### 57. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### CHAPTER 9SAdministration

#### 58. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 59. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 60. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

### CHAPTER 10SInterpretation

#### 61. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

## **PART 5**SThe general anti-avoidance rule

### IntroductoryS

#### 62The general anti-avoidance rule: introductoryS

(1)This Part has effect for the purpose of counteracting tax advantages arising from tax avoidance arrangements that are artificial.                  

(2)The rules in this Part are collectively to be known as “the general anti-avoidance rule”.                  

### Artificial tax avoidance arrangementsS

#### 63Tax avoidance arrangementsS

(1)An arrangement (or series of arrangements) is a tax avoidance arrangement if, having regard to all the circumstances, it would                        be reasonable to conclude that obtaining a tax advantage is the main purpose, or one of the main purposes, of the arrangement.                  

(2)An “arrangement”—                  

(a)includes any transaction, scheme, action, operation, agreement, grant, understanding, promise, undertaking or event (whether                        legally enforceable or not), and                  

(b)may comprise one or more stages or parts.                  

#### 64Meaning of “artificial”S

(1)A tax avoidance arrangement is artificial if condition A or B is met.                  

(2)Condition A is met if the entering into or carrying out of the arrangement is not a reasonable course of action in relation                        to the tax provisions in question having regard to all the circumstances, including—                  

(a)whether the substantive results of the arrangement are consistent with—                  

(i)any principles on which those provisions are based (whether express or implied), and                  

(ii)the policy objectives of those provisions,                  

(b)whether the arrangement is intended to exploit any shortcomings in those provisions.                  

(3)Condition B is met if the arrangement lacks economic or commercial substance.                  

(4)Each of the following is an example of something which might indicate that a tax avoidance arrangement lacks economic or commercial                        substance—                  

(a)whether the arrangement is carried out by a person in a manner which would not normally be employed in reasonable business                        conduct,                  

(b)whether the legal characterisation of the steps in the arrangement is inconsistent with the legal substance of the arrangement                        as a whole,                  

(c)whether the arrangement includes elements which have the effect of offsetting or cancelling each other,                  

(d)whether transactions are circular in nature,                  

(e)whether the arrangement results in a tax advantage that is not reflected in the business risks undertaken by the taxpayer.                  

(5)The fact that—                  

(a)a tax avoidance arrangement accords with established practice, and                  

(b)Revenue Scotland had, at the time the arrangement was entered into, indicated its acceptance of that practice,                  

is an example of something that might indicate that the arrangement is not artificial.

(6)The examples given in subsections (4) and (5) are not exhaustive.                  

(7)Where a tax avoidance arrangement forms part of any other arrangements, regard must also be had to those other arrangements.                  

#### 65Meaning of “tax advantage”S

(1)A “tax advantage” includes in particular—                  

(a)relief or increased relief from tax,                  

(b)repayment or increased repayment of tax,                  

(c)avoidance or reduction of a charge to tax or an assessment to tax,                  

(d)avoidance of a possible assessment to tax, and                  

(e)deferral of a payment of tax or advancement of a repayment of tax.                  

(2)In determining whether a tax avoidance arrangement has resulted in a tax advantage, regard may be had to the amount of tax                        that would have been payable in the absence of the arrangement.                  

### Counteracting tax advantagesS

#### 66Counteracting tax advantagesS

(1)Revenue Scotland may make such adjustments as it considers just and reasonable to counteract the tax advantages that would                        (ignoring this Part) arise from a tax avoidance arrangement that is artificial.                  

(2)The adjustments may be made in respect of the tax in question or any other devolved tax.                  

(3)The adjustments that may be made include (but are not restricted to) those that impose or increase a liability to tax in any                        case where (ignoring this Part) there would be no liability or a smaller liability, and tax is to be charged in accordance                        with any such adjustment.                  

(4)Any adjustments required to be made under this section (whether by Revenue Scotland or the person to whom the tax advantage                        would arise) may be made by—                  

(a)the amendment of a return (see sections 83, 87 and 93),                  

(b)the correction of a return (see section 84),                  

(c)the making of a Revenue Scotland determination (see section 95),                  

(d)the making of a tax return (see section 97),                  

(e)the making of a Revenue Scotland assessment (see section 100),                  

(f)the entering into of a contract settlement (see section 118), or                  

(g)such other method as Revenue Scotland considers appropriate.                  

(5)No steps may be taken by Revenue Scotland unless the procedural requirements of sections 68 and 69 have been complied with.                  

(6)The power to make adjustments by virtue of this section is subject to any time limit imposed by or under Part 6, any other                        provision of this Act or any other enactment.                  

#### 67Proceedings in connection with the general anti-avoidance ruleS

(1)In proceedings before a court or tribunal in connection with the general anti-avoidance rule, Revenue Scotland must show—                  

(a)that there is a tax avoidance arrangement that is artificial, and                  

(b)that the adjustments made to counteract the tax advantages arising from the tax avoidance arrangement are just and reasonable.                  

(2)In determining any issue in connection with the general anti-avoidance rule, a court or tribunal must take into account any                        guidance published by Revenue Scotland about the general anti-avoidance rule (at the time the tax avoidance arrangement was                        entered into).                  

(3)In determining any issue in connection with the general anti-avoidance rule, a court or tribunal may take into account—                  

(a)guidance, statements or other material (whether by Revenue Scotland or anyone else) that was in the public domain at the time                        the tax avoidance arrangement was entered into, and                  

(b)evidence of established practice at that time.                  

#### 68Notice to taxpayer of proposed counteraction of tax advantageS

(1)If a designated officer considers—                  

(a)that a tax advantage has arisen to a person (“the taxpayer”) from a tax avoidance arrangement that is artificial, and                  

(b)that the advantage should be counteracted under section 66,                  

the officer must give the taxpayer a notice to that effect.

(2)The notice must—                  

(a)specify the tax avoidance arrangement and the tax advantage,                  

(b)explain why the officer considers that a tax advantage has arisen to the taxpayer from a tax avoidance arrangement that is                        artificial,                  

(c)set out the counteraction that the officer considers should be taken, and                  

(d)inform the taxpayer of the period under subsection (4) for making representations.                  

(3)The notice may set out the steps that the taxpayer may take to avoid the proposed counteraction.                  

(4)If a notice is given to a taxpayer under subsection (1), the taxpayer has 45 days beginning with the day on which the notice                        is given to send representations to the designated officer in response to the notice.                  

(5)The designated officer may, on a request made by the taxpayer, extend the period during which representations may be made.                  

(6)The designated officer must take into account any representations made by the taxpayer.                  

#### 69Final notice to taxpayer of counteraction of tax advantageS

(1)The designated officer must, after the expiry of the period in which representations may be made under section 68, give the                        taxpayer a notice setting out whether the tax advantage arising from the tax avoidance arrangement is to be counteracted under                        the general anti-avoidance rule.                  

(2)If the notice states that a tax advantage is to be counteracted, the notice must also set out—                  

(a)the adjustments required to give effect to the counteraction, and                  

(b)if relevant, any steps that the taxpayer is required to take to give effect to it and the period within which those steps                        must be taken.                  

#### 70Counteraction of tax advantages: payment of tax charged etc.S

(1)This section applies where—                  

(a)a designated officer gives a taxpayer a notice under section 69, and                  

(b)the notice sets out the adjustments required to give effect to the counteraction of a tax advantage.                  

(2)The taxpayer must pay any amount, or additional amount, of tax chargeable or penalty or interest imposed as a result of the                        adjustments before the end of the period of 30 days beginning with the date on which the notice is issued.                  

(3)Subsection (2) applies in place of any other provision of this Act or any other enactment which specifies a time limit for                        the payment of tax, penalty or interest.                  

#### 71Assumption of tax advantageS

(1)A designated officer may give a notice under section 68 or 69 where the officer considers that a tax advantage might have                        arisen to the taxpayer.                  

(2)Accordingly, any notice given by a designated officer under section 68 or 69 may be expressed to be given on the assumption                        that the tax advantage does arise (without agreeing that it does).                  

### General anti-avoidance rule: commencement and transitional provisionS

#### 72General anti-avoidance rule: commencement and transitional provisionS

(1)The general anti-avoidance rule has effect in relation to any tax avoidance arrangement entered into on or after the date                        on which this Part comes into force.                  

(2)Where the tax avoidance arrangement forms part of any other arrangements entered into before that day, those other arrangements                        are to be ignored for the purposes of section 64(7), subject to subsection (3).                  

(3)Account is to be taken of those other arrangements if, as a result, the tax avoidance arrangement would not be artificial.                  

## **PART 6**STax returns, enquiries and assessments

### CHAPTER 1SOverview

#### 73OverviewS

### CHAPTER 2STaxpayer duties to keep and preserve records

#### Duties to keep recordsS

##### 74Duty to keep and preserve recordsS

##### 75Preservation of information etc.S

#### Penalties for failing to keep and preserve recordsS

##### 76Penalty for failure to keep and preserve recordsS

##### 77Reasonable excuse for failure to keep and preserve recordsS

##### 78Assessment of penalties under section 76S

##### 79Enforcement of penalties under section 76S

##### 80Power to change penalty provisions in sections 76 to 79S

#### Duty to keep and preserve records: further provisionS

##### 81Further provision: land and buildings transaction taxS

### CHAPTER 3STax returns

#### Filing datesS

##### 82Meaning of “filing date”S

#### Amendment and correction of returnsS

##### 83Amendment of return by taxpayerS

##### 84Correction of return by Revenue ScotlandS

### CHAPTER 4SRevenue Scotland enquiries

#### Notice and scope of enquiryS

##### 85Notice of enquiryS

##### 86Scope of enquiryS

#### Amendment of return during enquiryS

##### 87Amendment of self-assessment during enquiry to prevent loss of taxS

#### Referral during enquiryS

##### 88Referral of questions to appropriate tribunal during enquiryS

##### 89Withdrawal of notice of referralS

##### 90Effect of referral on enquiryS

##### 91Effect of determinationS

##### 92“Appropriate tribunal”S

#### Completion of enquiryS

##### 93Completion of enquiryS

##### 94Direction to complete enquiryS

### CHAPTER 5SRevenue Scotland determinations

#### 95Determination of tax chargeable if no return madeS

#### 96Determination to have effect as a self-assessmentS

#### 97Determination superseded by actual self-assessmentS

### CHAPTER 6SRevenue Scotland assessments

#### Assessment of loss of tax or of excessive repaymentS

##### 98Assessment where loss of taxS

##### 99Assessment to recover excessive repayment of taxS

##### 100References to “Revenue Scotland assessment”S

##### 101References to the “taxpayer”S

#### Conditions for making Revenue Scotland assessmentsS

##### 102Conditions for making Revenue Scotland assessmentsS

##### 103Time limits for Revenue Scotland assessmentsS

##### 104Losses brought about carelessly or deliberatelyS

#### Notice of assessment and other procedureS

##### 105Assessment procedureS

### CHAPTER 7SRelief in case of excessive assessment or overpaid tax

#### Double assessmentS

##### 106Relief in case of double assessmentS

#### Overpaid tax etc.S

##### 107Claim for relief for overpaid tax etc.S

#### Order changing tax basis not approvedS

##### 108. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### Defence of unjustified enrichmentS

##### 109Defence to certain claims for relief under section 107 or 108S

##### 110Unjustified enrichment: further provisionS

##### 111Unjustified enrichment: reimbursement arrangementsS

##### 112Reimbursement arrangements: penaltiesS

#### Other defences to claimsS

##### 113Cases in which Revenue Scotland need not give effect to a claimS

#### Procedure for making claimsS

##### 114Procedure for making claims etc.S

##### 115Time-limit for making claimsS

##### 116The claimant: partnershipsS

##### 117Assessment of claimant in connection with claimS

#### Contract settlementsS

##### 118Contract settlementsS

## **PART 7**SInvestigatory powers of Revenue Scotland

### CHAPTER 1SInvestigatory powers: introductory

#### OverviewS

##### 119Investigatory powers of Revenue Scotland: overviewS

This Part is arranged as follows—

(a)Chapter 2 sets out Revenue Scotland's investigatory powers in relation to information and documents,                  

(b)Chapter 3 contains restrictions on the powers in Chapter 2,                  

(c)Chapter 4 sets out Revenue Scotland's investigatory powers in relation to premises and other property,                  

(d)Chapter 5 sets out further investigatory powers,                  

(e)Chapter 6 is about reviews and appeals against information notices, and                  

(f)Chapter 7 sets out offences relating to information notices.                  

#### InterpretationS

##### 120Meaning of “tax position”S

(1)In this Part unless otherwise stated “tax position”, in relation to a person, means the person's position as regards any devolved tax, including the person's position as regards—                  

(a)past, present and future liability to pay any devolved tax,                  

(b)penalties and other amounts that have been paid, or are or may be payable, by or to the person in connection with any devolved                        tax, and                  

(c)claims, elections, applications and notices that have been or may be made or given in connection with the person's liability                        to pay any devolved tax,                  

(and references to a person's position as regards a particular tax (however expressed) are to be interpreted accordingly).

(2)References in this Part to the tax position of a person include the tax position of—                  

(a)an individual who has died,                  

(b)a company that has ceased to exist.                  

(3)References in this Part to a person's tax position are to the person's tax position at any time or in relation to any period,                        unless otherwise stated.                  

(4)References to checking a person's tax position include carrying out an investigation or enquiry of any kind.                  

##### 121Meaning of “carrying on a business”S

(1)In this Part references to carrying on a business include—                  

(a)the letting of property,                  

(b)the activities of a charity, and                  

(c)the activities of a local authority and any other public authority.                  

(2)The Scottish Ministers may by regulations provide that for the purposes of this Part—                  

(a)the carrying on of an activity specified in the regulations, or                  

(b)the carrying on of such an activity (or any activity) by a person specified in the regulations,                  

is or is not to be treated as the carrying on of a business.

##### 122Meaning of “statutory records”S

(1)For the purposes of this Part information or a document forms part of a person's statutory records if it is information or                        a document which the person is required to keep and preserve by or under this Act, subject to subsections (2) and (3).                  

(2)To the extent that any information or document that is required to be kept and preserved by or under this Act—                  

(a)does not relate to the carrying on of a business, and                  

(b)is not also required to be kept or preserved by or under any other enactment relating to devolved tax,                  

it forms part of a person's statutory records only to the extent that any accounting period or periods to which it relates                     has or have ended.                  

(3)Information and documents cease to form part of a person's statutory records when the period for which they are required to                        be preserved by or under this Act has expired.                  

### CHAPTER 2SInvestigatory powers: information and documents

#### 123Power to obtain information and documents from taxpayerS

(1)If the condition in subsection (2) is met, a designated officer may by notice require a person (“the taxpayer”)—                  

(a)to provide information, or                  

(b)to produce a document.                  

(2)That condition is that—                  

(a)the information or document is reasonably required by the officer for the purpose of checking the taxpayer's tax position,                        and                  

(b)it is reasonable for the taxpayer to be required to provide the information or to produce the document.                  

(3)In this Part “taxpayer notice” means a notice under this section.                  

#### 124Power to obtain information and documents from third partyS

(1)If the condition in subsection (2) is met, a designated officer may by notice require a person—                  

(a)to provide information, or                  

(b)to produce a document.                  

(2)That condition is that—                  

(a)the information or document is reasonably required by the officer for the purpose of checking the tax position of another                        person whose identity is known to the officer (“the taxpayer”), and                  

(b)it is reasonable for the person to be required to provide the information or to produce the document.                  

(3)A notice under this section must name the taxpayer to whom it relates, unless the tribunal has approved the giving of the                        notice and disapplied this requirement under section 125.                  

(4)In this Part “third party notice” means a notice under this section.                  

#### 125Approval of taxpayer notices and third party noticesS

(1)A designated officer may not give a third party notice without—                  

(a)the agreement of the taxpayer, or                  

(b)the approval of the tribunal.                  

(2)A designated officer may ask for the approval of the tribunal to the giving of any taxpayer notice or third party notice (and                        for the effect of obtaining such approval see sections 152 and 155).                  

(3)An application for approval under this section may be made without notice (except as required under subsection (4)).                  

(4)The tribunal may not approve the giving of a taxpayer notice or third party notice unless—                  

(a)the tribunal is satisfied that, in the circumstances, the officer giving the notice is justified in doing so,                  

(b)the person to whom the notice is to be addressed has been told that the information or documents referred to in the notice                        are required and has been given a reasonable opportunity to make representations to a designated officer,                  

(c)the tribunal has been given a summary of any representations made by that person, and                  

(d)in the case of a third party notice, the taxpayer has been given a summary of the reasons why a designated officer requires                        the information and documents.                  

(5)Paragraphs (b) to (d) of subsection (4) do not apply to the extent that the tribunal is satisfied that taking the action specified                        in those paragraphs might prejudice the assessment or collection of tax.                  

(6)Where the tribunal approves the giving of a third party notice under this paragraph, it may also disapply the requirement                        to name the taxpayer in the notice if it is satisfied that the designated officer has reasonable grounds for believing that                        naming the taxpayer might seriously prejudice the assessment or collection of tax.                  

#### 126Copying third party notice to taxpayerS

(1)A designated officer who gives a third party notice must give a copy of the notice to the taxpayer to whom it relates, unless                        the tribunal has disapplied this requirement.                  

(2)The tribunal may not disapply that requirement unless the tribunal is satisfied that the officer applying has reasonable grounds                        for believing that giving a copy of the notice to the taxpayer might prejudice the assessment or collection of tax.                  

#### 127Power to obtain information and documents about persons whose identity is not knownS

(1)If the conditions in subsection (2) are met, a designated officer may by notice require a person—                  

(a)to provide information, or                  

(b)to produce a document.                  

(2)Those conditions are—                  

(a)that the information or document is reasonably required by the officer for the purpose of checking the tax position of—                  

(i)a person whose identity is not known to the officer, or                  

(ii)a class of persons whose individual identities are not known to the officer, and                  

(b)the tribunal has approved the giving of the notice.                  

(3)An application for approval may be made without notice.                  

(4)The tribunal may not approve the giving of a notice under this section unless it is satisfied that—                  

(a)the notice would meet the condition in subsection (2)(a),                  

(b)there are reasonable grounds for believing that the person or any of the class of persons to whom the notice relates may have                        failed or may fail to comply with any provision of the law relating to a devolved tax,                  

(c)any such failure is likely to have led or to lead to serious prejudice to the assessment or collection of tax, and                  

(d)the information or document to which the notice relates is not readily available from another source.                  

#### 128Third party notices and notices under section 127: groups of undertakingsS

(1)This section applies where an undertaking is a parent undertaking in relation to another undertaking (a “subsidiary undertaking”).                  

(2)Where a third party notice is given to any person for the purpose of checking the tax position of the parent undertaking and                        any of its subsidiary undertakings—                  

(a)section 124(3) only requires the notice to state this and name the parent undertaking, and                  

(b)the references in section 125(6) to naming the taxpayer are to making that statement and naming the parent undertaking.                  

(3)In relation to such a notice—                  

(a)in sections 125 and 126 (approval of notices and copying third party notices), the references to the taxpayer have effect                        as if they were references to the parent undertaking, but                  

(b)in section 152(2)(b) (no review or appeal in relation to taxpayer's statutory records), the reference to the taxpayer has                        effect as if it were a reference to the parent undertaking and each of its subsidiary undertakings.                  

(4)Where a third party notice is given to the parent undertaking for the purpose of checking the tax position of more than one                        subsidiary undertaking—                  

(a)section 124(3) only requires the notice to state this, and                  

(b)the references in section 125(6) to naming the taxpayer are to making that statement.                  

(5)In relation to such a notice—                  

(a)in section 125 (approval of notices), subsections (1) and (4)(d) do not apply,                  

(b)section 126(1) (copying third party notices to taxpayer) does not apply,                  

(c)section 137 (restriction on giving taxpayer notice following a tax return) applies as if the notice was a taxpayer notice                        or taxpayer notices given to each subsidiary undertaking (or, if the notice names the subsidiary undertakings to which it                        relates, to each of those undertakings), and                  

(d)in section 152(2)(b) (no review or appeal in relation to a taxpayer's statutory records), the reference to the taxpayer has                        effect as if it were a reference to the parent undertaking or any of its subsidiary undertakings.                  

(6)In this section “parent undertaking”, “subsidiary undertaking” and “undertaking” have the meanings given in sections 1161 and 1162 of, and schedule 7 to, the Companies Act 2006 (c.46).                  

#### 129Third party notices and notices under section 127: partnershipsS

(1)This section applies where a business is carried on by two or more persons in partnership.                  

(2)Where, in respect of a taxable event entered into or undertaken by or on behalf of the members of the partnership, any partner                        has made a tax return, section 137 has effect as if that return had been made by each of the partners.                  

(3)Where a third party notice is given for the purpose of checking the tax position of more than one of the partners (in their                        capacity as such)—                  

(a)section 124(3) only requires the notice to state this and give a name by which the partnership is known or under which it                        is registered for any purpose, and                  

(b)the references in section 125(6) to naming the taxpayer are to making that statement and naming the partnership.                  

(4)In relation to such a notice given to a person other than one of the partners—                  

(a)in sections 125 and 126 (approval of notices and copying third party notices), the references to the taxpayer have effect                        as if they were references to at least one of the partners, and                  

(b)in section 152(2)(b) (no review or appeal in relation to taxpayer's statutory records), the reference to the taxpayer has                        effect as if it were a reference to any of the partners in the partnership.                  

(5)In relation to a third party notice given to one of the partners for the purpose of checking the tax position of one or more                        of the other partners (in their capacity as such)—                  

(a)in section 125 (approval of notices), subsections (1) and (4)(d) do not apply,                  

(b)section 126(1) (copying third party notices to taxpayer) does not apply, and                  

(c)in section 152(2)(b) (no review or appeal in relation to a taxpayer's statutory records), the reference to the taxpayer has                        effect as if it were a reference to any of the partners in the partnership.                  

#### 130Power to obtain information about persons whose identity can be ascertainedS

(1)A designated officer may by notice require a person (“P”) to provide relevant information about another person (“the taxpayer”)                        if the tribunal approves the giving of the notice.                  

(2)The tribunal may not approve the giving of a notice under this section unless satisfied that conditions A to D are met.                  

(3)Condition A is that the information is reasonably required by the officer for the purpose of checking the tax position of                        the taxpayer.                  

(4)Condition B is that—                  

(a)the taxpayer's identity is not known to the officer, but                  

(b)the officer holds information from which the taxpayer's identity can be ascertained.                  

(5)Condition C is that the officer has reason to believe that—                  

(a)P will be able to ascertain the taxpayer's identity from the information held by the officer, and                  

(b)P obtained relevant information about the taxpayer in the course of carrying on a business.                  

(6)Condition D is that the taxpayer's identity cannot readily be ascertained by other means from the information held by the                        officer.                  

(7)“Relevant information” means all or any of the following—                  

(a)name,                  

(b)last known address, and                  

(c)date of birth (in the case of an individual).                  

(8)This section applies for the purpose of checking the tax position of a class of persons as for the purpose of checking the                        tax position of a single person (and references to “taxpayer” are to be read accordingly).                  

#### 131NoticesS

(1)In this Part “information notice” means a notice under section 123, 124, 127 or 130.                  

(2)An information notice may specify or describe the information or documents to be provided or produced.                  

(3)If an information notice is given with the approval of the tribunal, it must state that it is given with that approval.                  

(4)A decision of the tribunal under section 125, 126, 127 or 130 is final.                  

#### 132Complying with information noticesS

(1)Where a person is required by an information notice to provide information or produce a document, the person must do so—                  

(a)within such period, and                  

(b)at such time, by such means and in such form (if any), as is reasonably specified or described in the notice.                  

(2)Where an information notice requires a person to produce a document, it must be produced—                  

(a)at a place agreed to by that person and a designated officer, or                  

(b)at such place as a designated officer may reasonably specify.                  

(3)A designated officer must not specify for the purposes of subsection (2)(b) a place that is used solely as a dwelling.                  

(4)The production of a document in compliance with an information notice is not to be regarded as breaking any lien claimed on                        the document.                  

#### 133Producing copies of documentsS

(1)Where an information notice requires a person to produce a document, the person may comply with the notice by producing a                        copy of the document, subject to any conditions or exceptions set out in regulations made by the Scottish Ministers.                  

(2)Subsection (1) does not apply where—                  

(a)the notice requires the person to produce the original document, or                  

(b)a designated officer subsequently makes a request to the person for the original document.                  

(3)Where a designated officer requests a document under subsection (2)(b), the person to whom the request is made must produce                        the document—                  

(a)within such period, and                  

(b)at such time and by such means (if any),                  

as is reasonably requested by the designated officer.

#### 134Further provision about powers relating to information noticesS

The Scottish Ministers may by regulations make further provision about—

(a)the form and content of information notices,                  

(b)the time periods for complying with information notices, and                  

(c)the manner of complying with information notices.                  

### CHAPTER 3SRestrictions on powers in Chapter 2

#### 135Information notices: general restrictionsS

(1)An information notice requires a person to produce a document only if it is in the person's possession or power.                  

(2)An information notice may not require a person to produce a document if the whole of the document originates more than 5 years                        before the date of the notice, unless the notice is given with the approval of the tribunal.                  

(3)An information notice given for the purposes of checking the tax position of a person who has died may not be given more than                        3 years after the person's death.                  

#### 136Types of informationS

(1)An information notice does not require a person to provide or produce—                  

(a)information that relates to the conduct of a pending review or appeal relating to tax (or any part of a document containing                        such information), or                  

(b)journalistic material (or information contained in such material).                  

(2)In subsection (1)(b) “journalistic material” means material acquired or created for the purposes of journalism.                  

(3)Material is to be treated as journalistic material if it is in the possession of someone who acquired or created it for the                        purposes of journalism.                  

(4)A person who receives material from someone who intends that the recipient will use it for the purposes of journalism is to                        be taken to have acquired it for those purposes.                  

(5)An information notice does not require a person to provide or produce personal records or information contained in such records,                        subject to subsection (7).                  

(6)In subsection (5) “personal records” means documentary and other records concerning an individual (“P”) (whether living or dead) who can be identified from them                        and relating—                  

(a)to P's physical or mental health,                  

(b)to spiritual counselling or assistance given or to be given to P, or                  

(c)to counselling or assistance given or to be given to P, for the purposes of P's personal welfare, by any voluntary organisation                        or by any individual who—                  

(i)by reason of an office or occupation has responsibilities for P's personal welfare, or                  

(ii)by reason of an order of a court has responsibilities for P's supervision.                  

(7)An information notice may require a person—                  

(a)to produce documents (or copies of documents) that are personal records, omitting any information whose inclusion (whether                        alone or with other information) makes the original documents personal records (“personal information”), and                  

(b)to provide any information contained in such records that is not personal information.                  

#### 137Taxpayer notices following a tax returnS

(1)Where a person has made a tax return in relation to a devolved tax in relation to an accounting period, a taxpayer notice                        may not be given for the purpose of checking that person's tax position in relation to that tax in relation to that accounting                        period.                  

(2)Where a person has made a tax return in relation to a devolved tax in relation to a transaction, a taxpayer notice may not                        be given for the purpose of checking that person's tax position in relation to that transaction.                  

(3)Subsections (1) and (2) do not apply where (or to the extent that) either of condition A or B is met.                  

(4)Condition A is that a notice of enquiry has been given in respect of—                  

(a)the return, or                  

(b)a claim or election (or an amendment of a claim or election) made by the person in relation to—                  

(i)the accounting period in respect of the tax (or one of the taxes) to which the return relates (“relevant tax”), or                  

(ii)the transaction to which the return relates,                  

and the enquiry has not been completed.

(5)Condition B is that, as regards the person, a designated officer has reason to suspect that—                  

(a)an amount that ought to have been assessed to relevant tax for the accounting period or, as the case may be, the transaction                        may not have been assessed,                  

(b)an assessment to relevant tax for the accounting period or, as the case may be, the transaction may be or have become insufficient,                        or                  

(c)relief from relevant tax given for the accounting period or, as the case may be, the transaction may be or have become excessive.                  

(6)References in this section to the person who made the return are only to that person in the capacity in which the return was                        made.                  

#### 138Protection for privileged communications between legal advisers and clientsS

(1)An information notice does not require a person—                  

(a)to provide privileged information, or                  

(b)to produce any part of a document that is privileged.                  

(2)For the purposes of this Part, information or a document is privileged if it is information or a document in respect of which                        a claim to confidentiality of communications as between client and professional legal adviser could be maintained in legal                        proceedings.                  

(3)The Scottish Ministers may by regulations make provision for the resolution by the tribunal of disputes as to whether any                        information or document is privileged.                  

(4)The regulations may, in particular, make provision as to the custody of a document while its status is being decided.                  

#### 139Protection for auditorsS

(1)An information notice does not require a person who has been appointed as an auditor for the purpose of an enactment—                  

(a)to provide information held in connection with the performance of the person's functions under that enactment, or                  

(b)to produce documents which are that person's property and which were created by that person or on that person's behalf for                        or in connection with the performance of those functions.                  

(2)Subsection (1) has effect subject to section 140.                  

#### 140Auditors: supplementaryS

(1)Section 139(1) does not have effect in relation to—                  

(a)information explaining any information or document which the person to whom the notice is given has, as tax accountant, assisted                        any client in preparing for, or delivering to, Revenue Scotland, or                  

(b)a document which contains such information.                  

(2)In the case of a notice given under section 127, section 139(1) does not have effect in relation to—                  

(a)any information giving the identity or address of a person to whom the notice relates or of a person who has acted on behalf                        of such a person, or                  

(b)a document which contains such information.                  

(3)Section 139 is not disapplied by subsection (1) or (2) if the information in question has already been provided, or a document                        containing the information has already been produced, to a designated officer.                  

(4)Where section 139 is disapplied in relation to a document by subsection (1) or (2), an information notice that requires the                        document to be produced has effect as if it required any part or parts of the document containing the information mentioned                        in subsection (1) or (2) to be produced.                  

### CHAPTER 4SInvestigatory powers: premises and other property

#### Inspection of business premisesS

##### 141Power to inspect business premisesS

(1)If the condition in subsection (2) is met, a designated officer may enter a person's business premises and inspect—                  

(a)the premises,                  

(b)business assets that are on the premises,                  

(c)business documents that are on the premises.                  

(2)That condition is that the designated officer has reason to believe that the inspection is reasonably required for the purpose                        of checking the person's tax position.                  

(3)The powers under this section do not include power to enter or inspect any part of the premises that is used solely as a dwelling.                  

(4)In this Chapter—                  
          -  “business assets” means assets that a designated officer has reason to believe are owned, leased or used in connection with the carrying on                           of a business by any person (but does not include documents),                         
          -  “business documents” means documents or copies of documents—                          (a)
that relate to the carrying on of a business by any person, and
(b)
that form part of any person's statutory records,
 
          -  “business premises”, in relation to a person, means premises (or any part of premises) that a designated officer has reason to believe are (or                           is) used in connection with the carrying on of a business by or on behalf of the person,                         
          -  “premises” includes any building or structure, any land and any means of transport.                         

##### 142Power to inspect business premises of involved third partiesS

(1)If the condition in subsection (2) is met, a designated officer may enter business premises of an involved third party and                        inspect—                  

(a)the premises,                  

(b)business assets that are on the premises, and                  

(c)relevant documents that are on the premises.                  

(2)That condition is that the designated officer has reason to believe that the inspection is reasonably required for the purpose                        of checking the position of any person or class of persons as regards a relevant devolved tax.                  

(3)In this section—                  
          -  “involved third party” means a person who is, or a category of persons who are, specified by the Scottish Ministers by order,                         
          -  “relevant documents” means such documents as may be so specified,                         
          -  “relevant devolved tax” means such devolved tax as may be so specified.                         

(4)The powers under this section may be exercised whether or not the identity of that person is, or the individual identities                        of those persons are, known to the designated officer.                  

(5)The powers under this section do not include power to enter or inspect any part of the premises that is used solely as a dwelling.                  

##### 143Carrying out inspections under section 141 or 142S

(1)An inspection under section 141 or 142 may be carried out only—                  

(a)at a time agreed to by the occupier of the premises, or                  

(b)if subsection (2) is satisfied, at any reasonable time.                  

(2)This subsection is satisfied if—                  

(a)the occupier of the premises has been given at least 7 days' notice in writing of the time of the inspection, or                  

(b)the officer has reasonable grounds for believing that giving notice of the inspection would seriously prejudice the assessment                        or collection of tax.                  

(3)A designated officer seeking to carry out an inspection under subsection (2)(b) must provide a notice in writing as follows—                  

(a)if the occupier of the premises is present at the time the inspection is to begin, the notice must be provided to the occupier,                  

(b)if the occupier of the premises is not present but a person who appears to the officer to be in charge of the premises is                        present, the notice must be provided to that person,                  

(c)in any other case, the notice must be left in a prominent place on the premises.                  

(4)The notice referred to in subsection (2)(a) or (3) must state the possible consequences of obstructing the designated officer                        in the exercise of the power.                  

(5)If a notice referred to in subsection (2)(a) or (3) is given in respect of an inspection approved by the tribunal (see section                        147), it must state that the inspection has been so approved.                  

##### 144Carrying out inspections under section 141 or 142: further provisionS

(1)A designated officer carrying out an inspection under section 141 or 142 has the following powers.                  

(2)On entering the premises, the officer may take any person authorised by the officer and, if the officer has reasonable cause                        to apprehend any serious obstruction in the execution of the inspection, a constable.                  

(3)Subject to subsection (9), on entering the premises, the officer or a person authorised by the officer may take any equipment                        or materials required for any purpose for which the inspection is being carried out.                  

(4)The officer may make such examination or investigation the officer considers to be necessary in the circumstances.                  

(5)The officer may direct that the premises or any part of them, or anything in them, be left undisturbed (whether generally                        or in particular respects) for so long as is reasonably necessary for the purpose of any such examination or investigation.                  

(6)The officer or a person authorised by the officer may take samples of material on the premises.                  

(7)The power to take samples mentioned in subsection (6) includes power—                  

(a)to carry out experimental borings or other works on the premises, and                  

(b)to install, keep or maintain monitoring and other apparatus there.                  

(8)Any sample taken under subsections (6) and (7) is to be disposed of in such manner as Revenue Scotland may determine.                  

(9)An officer or authorised person may exercise the power mentioned in subsection (3) only—                  

(a)at a time agreed to by the occupier of the premises, or                  

(b)if subsection (10) is satisfied, at any reasonable time.                  

(10)This subsection is satisfied if—                  

(a)in a case where notice was given under section 143(2)(a), that the notice informed the occupier of the premises that the officer                        or authorised person intended to exercise the power mentioned in subsection (3), or                  

(b)the officer has reasonable grounds for believing that giving notice of the exercise of that power would seriously prejudice                        the assessment or collection of tax.                  

(11)Section 143(3) to (5) apply to the exercise of the power mentioned in subsection (3) by virtue of subsection (10)(b) as they                        apply to an inspection carried out by virtue of section 143(2)(b).                  

#### Inspection for valuation etc.S

##### 145Power to inspect property for valuation etc.S

(1)A designated officer may enter and inspect premises for the purpose of valuing the premises if the valuation is reasonably                        required for the purpose of checking any person's tax position.                  

(2)A designated officer may enter premises and inspect—                  

(a)the premises,                  

(b)any other property on the premises,                  

for the purpose of valuing, measuring or determining the character of the premises or property.

(3)Subsection (2) only applies if the valuation, measurement or determination is reasonably required for the purposes of checking                        any person's tax position.                  

(4)A person who the designated officer considers is needed to assist with the valuation, measurement or determination may enter                        and inspect the premises or property with the officer.                  

##### 146Carrying out inspections under section 145S

(1)An inspection under section 145 may be carried out only if condition A or B is met.                  

(2)Condition A is that—                  

(a)the inspection is carried out at a time agreed to by a relevant person, and                  

(b)the relevant person has been given notice in writing of the agreed time of the inspection.                  

(3)“Relevant person” means—                  

(a)the occupier of the premises, or                  

(b)if the occupier cannot be identified or the premises are vacant, a person who controls the premises.                  

(4)Condition B is that—                  

(a)the inspection has been approved by the tribunal, and                  

(b)any relevant person specified by the tribunal has been given at least 7 days' notice in writing of the time of the inspection.                  

(5)A notice under subsection (4)(b) must state the possible consequences of obstructing the officer in the exercise of the power.                  

(6)If a notice is given under this section in respect of an inspection approved by the tribunal (see section 147), it must state                        that the inspection has been so approved.                  

(7)A designated officer seeking to carry out an inspection under section 145 must produce evidence of authority to carry out                        the inspection if asked to do so by—                  

(a)the occupier of the premises, or                  

(b)any other person who appears to the officer to be in charge of the premises or property.                  

#### Approval of tribunal for premises inspectionsS

##### 147Approval of tribunal for premises inspectionsS

(1)A designated officer may ask the tribunal—                  

(a)to approve an inspection under section 141, 142 or 145, or                  

(b)to approve the exercise, in relation to an inspection under section 141 or 142, of any of the powers mentioned in section                        144,                  

(and for the effect of obtaining such approval see section 195 (penalties for failure to comply or obstruction)).

(2)An application for approval under this section may be made without notice (except as required under subsection (4)).                  

(3)The tribunal may not approve an inspection under section 141 or 142 unless the tribunal is satisfied that, in the circumstances,                        the inspection is justified.                  

(4)The tribunal may not approve an inspection under section 145 unless—                  

(a)the person whose tax position is the subject of the proposed inspection has been given a reasonable opportunity to make representations                        to the designated officer about that inspection,                  

(b)the occupier of the premises has been given a reasonable opportunity to make such representations,                  

(c)the tribunal has been given a summary of any representations made, and                  

(d)the tribunal is satisfied that, in the circumstances, the inspection is justified.                  

(5)Subsection (4)(b) does not apply if the tribunal is satisfied that the occupier of the premises cannot be identified.                  

(6)A decision of the tribunal under this section is final.                  

#### Other powers in relation to premisesS

##### 148Power to mark assets and to record informationS

The powers under sections 141 to 146 include—

(a)power to mark business assets, and anything containing business assets, for the purpose of indicating that they have been                        inspected, and                  

(b)power to obtain and record information (whether electronically or otherwise) relating to the premises, property, assets and                        documents that have been inspected.                  

#### Restriction on inspection of documentsS

##### 149Restriction on inspection of documentsS

A designated officer may not inspect a document under this Chapter if (or to the extent that), by virtue of Chapters 2 and                     3, an information notice given at the time of the inspection to the occupier of the premises could not require the occupier                     to produce the document.                  

### CHAPTER 5SFurther investigatory powers

#### 150Power to copy and remove documentsS

(1)Where a document is produced to, or inspected by, a designated officer, the officer may take copies of, or make extracts from,                        the document.                  

(2)Where a document is produced to, or inspected by, a designated officer, the officer may—                  

(a)remove the document at a reasonable time, and                  

(b)retain it for a reasonable period, if it appears to the officer to be necessary to do so.                  

(3)Where a document is removed in accordance with subsection (2), the person who produced the document may request—                  

(a)a receipt for the document, and                  

(b)a copy of the document.                  

(4)A designated officer must comply with a request under subsection (3) without charge.                  

(5)The removal of a document under this section is not to be regarded as breaking any lien claimed on the document.                  

(6)Where a document removed under this section is lost or damaged, Revenue Scotland is liable to compensate the owner of the                        document for any expenses reasonably incurred in replacing or repairing the document.                  

(7)In this section references to a document include a copy of a document.                  

#### 151Computer recordsS

(1)This section applies to any provision of this Part or Part 8 (penalties) that—                  

(a)requires a person to produce a document or cause a document to be produced,                  

(b)requires a person to permit a designated officer—                  

(i)to inspect a document, or                  

(ii)to make or take copies of or extracts from or remove a document,                  

(c)makes provision about penalties or offences in connection with the production or inspection of documents, including with the                        failure to produce or permit the inspection of documents, or                  

(d)makes any other provision in connection with a requirement mentioned in paragraph (a) or (b).                  

(2)A provision to which this section applies has effect as if—                  

(a)any reference in the provision to a document were a reference to anything in which information of any description is recorded,                        and                  

(b)any reference in the provision to a copy of a document were a reference to anything onto which information recorded in the                        document has been copied, by whatever means and whether directly or indirectly.                  

(3)A designated officer may, at any reasonable time, obtain access to, inspect and check the operation of, any computer and any                        associated apparatus or material which is or has been used in connection with a relevant document.                  

(4)In subsection (3) “relevant document” means a document that a person has been, or may be, required by or under a provision of this Part—                  

(a)to produce or cause to be produced, or                  

(b)to permit a designated officer—                  

(i)to inspect,                  

(ii)to make or take copies of or extracts from, or                  

(iii)to remove.                  

(5)A designated officer may require—                  

(a)the person by whom or on whose behalf the computer is or has been so used, or                  

(b)any person having charge of, or otherwise concerned with the operation of, the computer, apparatus or material,                  

to provide the designated officer with such reasonable assistance as may be required for the purposes of subsection (3).

(6)A person who—                  

(a)obstructs the exercise of a power conferred by this section, or                  

(b)fails to comply within a reasonable time with a requirement under subsection (5),                  

is liable to a penalty of £300.

(7)Sections 201 to 203 (assessment and enforcement of penalties) apply in relation to a penalty under this section as they apply                        in relation to a penalty under section 195.                  

### CHAPTER 6SReviews and appeals against information notices

#### 152Review or appeal against information noticesS

(1)This section applies where a person seeks, under Part 11, to have a decision in relation to the giving of an information notice                        or in relation to any requirement in such a notice reviewed or appealed.                  

(2)The following are not appealable decisions for the purposes of section 233(1)(h)—                  

(a)a decision to give a taxpayer notice or third party notice if the tribunal approved the giving of the notice under section                        125,                  

(b)a decision to include a requirement in such a notice if it is a requirement to provide any information, or produce any document,                        that forms part of a taxpayer's statutory records.                  

(3)A person may give notice of review or notice of appeal in relation to a decision to give a third party notice, or in relation                        to a requirement in such a notice, only on the ground that it would be unduly onerous to comply with the notice or the requirement                        in it.                  

(4)But in a case to which section 128(4) or 129(5) applies, a notice of review or notice of appeal may be given on any grounds.                  

(5)A person may give notice of review or notice of appeal in relation to a decision to give a notice under section 127 or 130,                        or in relation to a requirement in such a notice, only on the ground that it would be unduly onerous to comply with the notice                        or the requirement in it.                  

(6)But in a case to which subsection (7) applies—                  

(a)a notice of review or notice of appeal may be given on any grounds,                  

(b)a notice of review or notice of appeal may not be given in relation to a decision to include a requirement in a notice under                        section 127—                  

(i)if it is a requirement to provide any information, or produce any document, that forms part of the statutory records of the                        parent undertaking or any of its subsidiary undertakings, or                  

(ii)if it is a requirement to provide any information, or produce any document, that forms part of the partner's statutory records.                  

(7)This subsection applies where notice is given under section 127—                  

(a)to a parent undertaking for the purposes of checking the tax position of one or more subsidiary undertakings whose identities                        are not known to the officer giving the notice, or                  

(b)to one or more partners for the purpose of checking the tax position of one or more of the other partners whose identities                        are not known to the officer giving the notice.                  

(8)In this section “parent undertaking”, “subsidiary undertaking” and “undertaking” have the same meanings as in section 128.                  

#### 153Power to modify section 152S

The Scottish Ministers may by order modify section 152(2) to (8) to provide for certain decisions in relation to the giving                     of information notices or in relation to any requirement in such notices—                  

(a)to be appealable for the purposes of section 233(1)(h),                  

(b)to be appealable for the purposes of that paragraph on certain grounds or in certain circumstances only,                  

(c)to not be appealable.                  

#### 154Disposal of reviews and appeals in relation to information noticesS

(1)This section applies where a person gives notice of review or notice of appeal in relation to a decision relating to an information                        notice or a requirement in it.                  

(2)Where the conclusions of the review under section 238 uphold or vary the information notice or requirement, the person to                        whom the information notice was given must comply with the notice or requirement within such period as is reasonably specified                        by a designated officer.                  

(3)But subsection (2) does not apply where section 240(2) applies (conclusions of review not to have effect of settlement agreement                        if mediation entered into or notice of appeal given).                  

(4)Where the tribunal, under section 244 (disposal of appeals), upholds or varies the information notice or requirement, the                        person to whom the information notice was given must comply with the notice or requirement—                  

(a)within the period specified by the tribunal, or                  

(b)if the tribunal does not specify a period, within such period as is reasonably specified by a designated officer following                        the tribunal's decision.                  

(5)A decision of the tribunal on an appeal to which this section applies is final.                  

### CHAPTER 7SOffences relating to information notices

#### 155Offence of concealing etc. documents following information noticeS

(1)A person commits an offence if—                  

(a)the person is required to produce a document by an information notice the giving of which was approved by the tribunal, and                  

(b)the person conceals, destroys or otherwise disposes of (or arranges for the concealment, destruction or disposal of) that                        document.                  

(2)Subsection (1) does not apply if the person acts after the document has been produced to a designated officer in accordance                        with the information notice, unless a designated officer has notified the person that the document must continue to be available                        for inspection (and has not withdrawn the notification).                  

(3)Subsection (1) does not apply, in a case to which section 133 applies, if the person acts after the expiry of the period of                        6 months beginning with the day on which a copy of the document was so produced unless, before the expiry of that period,                        a designated officer made a request for the original document under section 133(2)(b).                  

(4)A person who commits an offence under subsection (1) is liable—                  

(a)on summary conviction, to a fine not exceeding the statutory maximum,                  

(b)on conviction on indictment, to imprisonment for a term not exceeding 2 years or a fine (or both).                  

#### 156Offence of concealing etc. documents following information notificationS

(1)A person commits an offence if the person conceals, destroys or otherwise disposes of (or arranges for the concealment, destruction                        or disposal of) a document after the person has been notified by a designated officer that—                  

(a)the document is to be, or is likely to be, the subject of an information notice addressed to that person, and                  

(b)a designated officer either intends, under section 125, or is required, under section 127 or 130, to seek the approval of                        the tribunal to the giving of the notice in respect of the document.                  

(2)A person does not commit an offence under this section if the person acts after—                  

(a)at least 6 months has expired since the person was (or was last) so informed, or                  

(b)an information notice has been given to the person requiring the document to be produced.                  

(3)A person who commits an offence under subsection (1) is liable—                  

(a)on summary conviction, to a fine not exceeding the statutory maximum,                  

(b)on conviction on indictment, to imprisonment for a term not exceeding 2 years or a fine (or both).                  

## **PART 8**SPenalties

### CHAPTER 1SPenalties: introductory

#### OverviewS

##### 157Penalties: overviewS

#### Double jeopardyS

##### 158Double jeopardyS

### CHAPTER 2SPenalties for failure to make returns or pay tax

#### Penalties for failure to make returnsS

##### 159Penalty for failure to make returnsS

#### Amounts of penalties for failure to make returns: LBTTS

##### 160Land and buildings transaction tax: first penalty for failure to make returnS

##### 161. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

##### 162Land and buildings transaction tax: 6 month penalty for failure to make returnS

##### 163Land and buildings transaction tax: 12 month penalty for failure to make returnS

#### Amounts of penalties for failure to make returns: Scottish landfill taxS

##### 164Scottish landfill tax: first penalty for failure to make returnS

##### 165Scottish landfill tax: multiple failures to make returnS

##### 166Scottish landfill tax: 6 month penalty for failure to make returnS

##### 167Scottish landfill tax: 12 month penalty for failure to make returnS

#### Penalties for failure to pay taxS

##### 168Penalty for failure to pay taxS

#### Amounts of penalties for failure to pay tax: LBTTS

##### 169Land and buildings transaction tax: amounts of penalties for failure to pay taxS

#### Amounts of penalties for failure to pay tax: Scottish landfill taxS

##### 170Scottish landfill tax: first penalty for failure to pay taxS

##### 171Scottish landfill tax: penalties for multiple failures to pay taxS

##### 172Scottish landfill tax: 6 month penalty for failure to pay taxS

##### 173Scottish landfill tax: 12 month penalty for failure to pay taxS

#### Penalties under Chapter 2: generalS

##### 174Interaction of penalties under Chapter 2 with other penaltiesS

##### 175Reduction in penalty under sections 159 to 167 for disclosureS

##### 176Suspension of penalty under sections 168 to 173 during currency of agreement for deferred paymentS

##### 177Special reduction in penalty under Chapter 2S

##### 178Reasonable excuse for failure to make return or pay taxS

##### 179Assessment of penalties under Chapter 2S

##### 180Time limit for assessment of penalties under Chapter 2S

##### 181Power to change penalty provisions in Chapter 2S

### CHAPTER 3SPenalties relating to inaccuracies

#### Penalties for inaccuracies in taxpayer documentsS

##### 182Penalty for inaccuracy in taxpayer documentS

##### 183Amount of penalty for inaccuracy in taxpayer documentS

##### 184Suspension of penalty for careless inaccuracy under section 182S

#### Penalty for inaccuracy attributable to another personS

##### 185Penalty for inaccuracy in taxpayer document attributable to another personS

#### Penalty for failure to notify under-assessmentS

##### 186Penalty for failure to notify under-assessmentS

#### Penalties under Chapter 3: generalS

##### 187Potential lost revenue: normal ruleS

##### 188Potential lost revenue: multiple errorsS

##### 189Potential lost revenue: lossesS

##### 190Potential lost revenue: delayed taxS

##### 191Special reduction in penalty under this ChapterS

##### 192Reduction in penalty under this Chapter for disclosureS

##### 193Assessment of penalties under this ChapterS

##### 194Power to change penalty provisions in Chapter 3S

### CHAPTER 4SPenalties relating to investigations

#### Penalties for failure to comply or obstructionS

##### 195Penalties for failure to comply or obstructionS

##### 196Daily default penalties for failure to comply or obstructionS

#### Penalties for inaccurate information or documentsS

##### 197Penalties for inaccurate information or documentsS

#### Penalties for concealing, destroying etc. documentsS

##### 198Concealing, destroying etc. documents following information noticeS

##### 199Concealing, destroying etc. documents following information notificationS

#### Penalties: failure to comply with time limitS

##### 200Failure to comply with time limitS

#### Penalties under Chapter 4: generalS

##### 201Reasonable excuse for failure to comply or obstructionS

##### 202Assessment of penalties under sections 195, 196 and 197S

##### 203Enforcement of penalties under sections 195, 196 and 197S

##### 204Increased daily default penaltyS

##### 205Enforcement of increased daily default penaltyS

##### 206Tax-related penaltyS

##### 207Enforcement of tax-related penaltyS

##### 208Power to change penalty provisions in Chapter 4S

### CHAPTER 5SOther administrative penalties

#### Penalties for failure to register for tax etc.S

##### 209Penalty for failure to register for tax etc.S

##### 210Amount of penalty for failure to register for tax etc.S

#### Penalties under Chapter 5: generalS

##### 211Interaction of penalties under section 209 with other penaltiesS

##### 212Reduction in penalty under section 209 for disclosureS

##### 213Special reduction in penalty under section 209S

##### 214Reasonable excuse for failure to register for tax etc.S

##### 215Assessment of penalties under section 209S

##### 216Power to change penalty provisions in Chapter 5S

## **PART 9**SInterest on payments due to or by Revenue Scotland

### 217Interest on unpaid taxS

(1)Interest is payable on the amount of any unpaid tax from the relevant date until the tax is paid.                  

(2)For the purposes of this section the “relevant date” is the date for payment of the tax which is specified by the Scottish                        Ministers in regulations.                  

(3)If an amount is lodged with Revenue Scotland in respect of the tax payable on a transaction, the amount on which interest                        is payable is reduced by that amount.                  

(4)Interest under this section is calculated at the rate specified in provision made under section 220.                  

### 218Interest on penaltiesS

(1)Interest is payable on the amount of any unpaid penalty from the date on which the penalty is due to be paid until it is paid.                  

(2)Interest under this section is calculated at the rate specified in provision made under section 220.                  

### 219Interest on repayment of tax overpaid etc.S

(1)A repayment by Revenue Scotland to which this section applies must be made with interest for the period between the relevant                        date and the date when the repayment is issued.                  

(2)This section applies to—                  

(a)any repayment of tax,                  

(b)any repayment of a penalty, and                  

(c)any repayment of interest (whether on tax or penalty).                  

(3)In the cases mentioned in subsection (2) the “relevant date” is the date on which the payment of the tax, penalty or interest                        was made.                  

(4)This section also applies to a repayment by Revenue Scotland of an amount lodged with it in respect of the tax payable in                        respect of a transaction.                  

(5)In the case mentioned in subsection (4) the “relevant date” is the date on which the amount was lodged with Revenue Scotland.                  

(6)Interest under this section is calculated at the rate specified in provision made under section 220.                  

### 220Rates of interestS

(1)The rate of interest that applies for the purposes of sections 217, 218 and 219 is the rate specified by the Scottish Ministers                        in regulations.                  

(2)Regulations under subsection (1) may—                  

(a)provide for different rates for different devolved taxes or different penalties,                  

(b)provide for circumstances in which alteration of a rate of interest is or is not to take place,                  

(c)provide that alterations of rates are to have effect for periods beginning on or after a day determined in accordance with                        the regulations in relation to interest running from before that day as well as from or from after that day.                  

## **PART 10**SEnforcement of payment of tax

### CHAPTER 1SEnforcement: general

#### Issue of tax demands and receiptsS

##### 221Issue of tax demands and receiptsS

(1)Where tax is due and payable, Revenue Scotland may demand the sum charged from the person liable to pay it.                  

(2)On payment of the tax, Revenue Scotland must give a receipt.                  

#### Fees for paymentS

##### 222Fees for paymentS

(1)The Scottish Ministers may by regulations provide that, where a person makes a payment to Revenue Scotland or a person authorised                        by Revenue Scotland using a method of payment specified in the regulations, the person must also pay a fee specified in, or                        determined in accordance with, the regulations.                  

(2)A method of payment may only be specified in regulations under this section if Revenue Scotland expects that it, or the person                        authorised by it, will be required to pay a fee or charge (however described) in connection with amounts paid using that method                        of payment.                  

(3)The fee provided for in regulations under this section must not exceed what is reasonable having regard to the costs incurred                        by Revenue Scotland, or a person authorised by it, in paying the fee or charge mentioned in subsection (2).                  

(4)Regulations under this section—                  

(a)may make provision about the time and manner in which the fee must be paid,                  

(b)may make provision generally or only for specified purposes.                  

#### Certification of matters by Revenue ScotlandS

##### 223Certification of matters by Revenue ScotlandS

(1)A certificate of Revenue Scotland—                  

(a)that a return required to be made to Revenue Scotland under this Act or any other enactment has not been made,                  

(b)that a relevant sum has not been paid,                  

(c)that a notification required to be made to Revenue Scotland under this Act or any other enactment has not been made,                  

is sufficient evidence of that fact until the contrary is proved.

(2)In subsection (1) “relevant sum” means a sum payable to Revenue Scotland by or under this Act or any other enactment or under a contract settlement or a                        settlement agreement.                  

(3)A copy of any document provided to Revenue Scotland for the purposes of this Act or any other enactment and certified by it                        to be such a copy is admissible in any proceedings, whether civil or criminal, to the same extent as the document itself.                  

(4)Any document purporting to be such a certificate is to be treated as if it were such a certificate until the contrary is proved.                  

#### Court proceedingsS

##### 224Court proceedingsS

Tax due and payable may be sued for and recovered from the person liable to pay it as a debt due to the Crown by proceedings—

(a)in the sheriff court, or                  

(b)in the Court of Session (sitting as the Court of Exchequer).                  

#### Summary warrantS

##### 225Summary warrantS

(1)This section applies if a person does not pay an amount that is payable by that person to Revenue Scotland by or under this                        Act or any other enactment or under a contract settlement or a settlement agreement.                  

(2)A designated officer may apply to the sheriff for a summary warrant.                  

(3)An application under subsection (2) must be accompanied by a certificate which—                  

(a)complies with subsection (4), and                  

(b)is signed by the officer.                  

(4)A certificate complies with this subsection if—                  

(a)it states that—                  

(i)none of the persons specified in the application has paid the sum payable by that person,                  

(ii)the officer has demanded payment from each such person of the sum payable by that person, and                  

(iii)the period of 14 days beginning with the day on which the demand is made has expired without payment being made, and                  

(b)it specifies the sum payable by each person specified in the application.                  

(5)The sheriff must, on an application by a designated officer under subsection (2), grant a summary warrant in (or as nearly                        as may be in) the form prescribed by Act of Sederunt.                  

(6)A summary warrant granted under subsection (5) authorises the recovery of the sum payable by—                  

(a)attachment,                  

(b)money attachment,                  

(c)earnings arrestment,                  

(d)arrestment and action of furthcoming or sale.                  

(7)Subject to subsection (8) and without prejudice to section 39(1) of the Debt Arrangement and Attachment (Scotland) Act 2002                        (asp 17) (expenses of attachment)—                  

(a)the sheriff officer's fees, and                  

(b)any outlays reasonably incurred by that officer,                  

in connection with the execution of a summary warrant are to be chargeable against the person in relation to whom the summary                     warrant was granted.                  

(8)No fees are to be chargeable by the sheriff officer against the person in relation to whom the summary warrant was granted                        for collecting, and accounting to Revenue Scotland for, sums paid to that officer by that person in respect of the sum payable.                  

#### Recovery of penalties and interestS

##### 226Recovery of penalties and interestS

The provisions of this Chapter have effect in relation to the recovery of any unpaid amount by way of—

(a)penalty, or                  

(b)interest (whether on unpaid tax or penalty),                  

as though that amount were an amount of unpaid tax.

### CHAPTER 2SEnforcement: powers to obtain contact details for debtors

#### 227Requirement for contact details for debtorS

(1)This Chapter applies where—                  

(a)a sum is payable by a person (“the debtor”) to Revenue Scotland by or under this Act or any other enactment or under a contract settlement or a settlement agreement,                  

(b)a designated officer reasonably requires contact details for the debtor for the purpose of collecting that sum,                  

(c)the officer has reasonable grounds to believe that a person (“the third party”) has any such details, and                  

(d)the condition in subsection (2) is met.                  

(2)The condition is that—                  

(a)the third party is a company or a local authority, or                  

(b)the officer has reasonable grounds to believe that the third party obtained the details in the course of carrying on a business.                  

(3)This Chapter does not apply if—                  

(a)the third party is a charity and obtained the details in the course of providing services free of charge, or                  

(b)the third party is not a charity but obtained the details in the course of providing services on behalf of a charity that                        are free of charge to the recipient of the service.                  

(4)In this Chapter—                  
          -  “business” includes—                          (a)
a profession, and
(b)
a property business (within the meaning of section 263(6) of the Income Tax (Trading and Other Income) Act 2005 (c.5)),
 
          -  “contact details”, in relation to a person, means the person's address and any other information about how the person may be contacted.                         

#### 228Power to obtain detailsS

(1)A designated officer may by notice require the third party to provide the contact details.                  

(2)The notice must name the debtor.                  

(3)If a notice is given under subsection (1), the third party must provide the details—                  

(a)within such period, and                  

(b)at such time, by such means and in such form (if any),                  

as is reasonably specified or described in the notice.

#### 229Reviews and appeals against notices or requirementsS

(1)This section applies where a third party seeks, under Part 11, to have a decision in relation to the giving of a notice under                        section 228 or in relation to any requirement in such a notice reviewed or appealed.                  

(2)A third party may give notice of review or notice of appeal in relation to a decision to give a notice, or in relation to                        a requirement in such a notice, only on the ground that it would be unduly onerous to comply with the notice or the requirement                        in it.                  

#### 230Power to modify section 229S

The Scottish Ministers may by order modify section 229(2) to provide for certain decisions in relation to the giving of notices                     under section 228 or in relation to any requirement in such notices—                  

(a)to be appealable for the purposes of section 233(1)(i),                  

(b)to be appealable for the purposes of that paragraph on certain grounds or in certain circumstances only,                  

(c)to not be appealable.                  

#### 231PenaltyS

(1)This section applies if the third party fails to comply with the notice.                  

(2)The third party is liable to a penalty of £300.                  

(3)Sections 201 to 203 (assessment and enforcement of penalties) apply in relation to a penalty under this section as they apply                        in relation to a penalty under section 195 (and references in those provisions to an information notice include a notice under                        this Chapter).                  

## **PART 11**SReviews and appeals

### CHAPTER 1SIntroductory

#### OverviewS

##### 232OverviewS

#### Appealable decisionsS

##### 233Appealable decisionsS

### CHAPTER 2SReviews

#### Review of appealable decisionsS

##### 234Right to request reviewS

##### 235. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

##### 236Late notice of reviewS

##### 237Duty of Revenue Scotland to carry out reviewS

##### 238Nature of review etc.S

##### 239Notification of conclusions of reviewS

##### 240Effect of conclusions of reviewS

### CHAPTER 3SAppeals

#### 241Right of appealS

#### 242Notice of appealS

#### 243Late notice of appealS

#### 244Disposal of appealS

### CHAPTER 4SSupplementary

#### 245Reviews and appeals not to postpone recovery of taxS

#### 246Settling matters in question by agreementS

#### 247Application of this Part to joint buyersS

#### 248Application of this Part to trusteesS

#### 249. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  

#### 250InterpretationS

## **PART 12**SFinal provisions

### Communications from taxpayers to Revenue ScotlandS

#### 251Communications from taxpayers to Revenue ScotlandS

(1)Any notice, application or other thing that a person is required or permitted by provision made in or under this Act to give                        to Revenue Scotland must comply with the requirements set out in subsection (2).                  

(2)The requirements are that the thing—                  

(a)must be in the form specified by Revenue Scotland,                  

(b)must contain the information specified by Revenue Scotland, and                  

(c)must be given in the manner specified by Revenue Scotland.                  

(3)Subsections (1) and (2) are subject to any different provision made in or under this Act.                  

### InterpretationS

#### 252General interpretationS

In this Act—
          -  “the LBTT(S) Act 2013” means the Land and Buildings Transaction Tax (Scotland) Act 2013 (asp 11),                         
          -  “the LT(S) Act 2014” means the Landfill Tax (Scotland) Act 2014 (asp 2),                         
          -  “designated officer” means a member of staff of Revenue Scotland or other person who is, or a category of members of staff or other persons who                           are, designated by Revenue Scotland for the purposes of this Act,                         
          -  “information notice” has the meaning given by section 131(1),                         
          -  “notice of appeal” means a notice under section 242,                         
          -  “notice of review” means a notice under section 235,                         
          -  “Revenue Scotland determination” means a determination under section 95,                         
          -  “tribunal” has the meaning given by section 249.                         

#### 253Index of defined expressionsS

Schedule 5 contains an index of expressions defined or otherwise explained in this Act.

### Subordinate legislationS

#### 254Subordinate legislationS

(1)Orders and regulations under this Act are subject to the negative procedure.                  

(2)Subsection (1) does not apply to—                  

(a)orders and regulations for which provision is made in subsection (3) or (4),                  

(b)orders under section 260(2).                  

(3)Orders and regulations under the following provisions are subject to the affirmative procedure—                  

(a)section 31(1),                  

(b)section 32,                  

(c)section 49(1),                  

(d)section 50(1),                  

(e)section 80(1),                  

(f)section 81(2),                  

(g)section 111(1),                  

(h)section 153,                  

(i)section 181(1),                  

(j)section 194(1),                  

(k)section 208(1),                  

(l)section 216(1),                  

(m)section 220(1),                  

(n)section 230,                  

(o)section 233(6),                  

(p)section 245(2),                  

(q)paragraph 9(1) of schedule 3.                  

(4)Orders under section 255(1) which contain provision which adds to, replaces or omits any part of the text of an Act are also                        subject to the affirmative procedure.                  

(5)Orders and regulations under this Act may—                  

(a)make different provision for different purposes (including for different devolved taxes),                  

(b)contain incidental, supplementary, consequential, transitional, transitory or saving provision.                  

(6)Subsection (5)(b) does not apply to orders under section 255(1).                  

### Ancillary provisionS

#### 255Ancillary provisionS

(1)The Scottish Ministers may by order make such incidental, supplementary, consequential, transitional, transitory or saving                        provision as they consider appropriate for the purposes of, in connection with, or for giving full effect to, this Act or                        any provision of it.                  

(2)An order under subsection (1) may modify any enactment (including this Act).                  

### Modification of enactmentsS

#### 256Minor and consequential modifications of enactmentsS

Schedule 4 makes minor and consequential amendments and repeals of enactments.

### Crown applicationS

#### 257Crown application: criminal offencesS

(1)No contravention by the Crown of any provision of or made under this Act makes the Crown criminally liable.                  

(2)But the Court of Session may, on the application of the Lord Advocate, declare unlawful any act or omission of the Crown which                        constitutes such a contravention.                  

(3)Despite subsection (1), this Act applies to persons in the public service of the Crown as it applies to other persons.                  

#### 258Crown application: powers of entryS

(1)A power of entry conferred by or under this Act is exercisable in relation to Crown land only with the consent of the appropriate                        authority.                  

(2)The following table determines what is “Crown land” and who the “appropriate authority” is in relation to each kind of Crown                        land.                  

(3)“Government department” means a department of the Government of the United Kingdom”.                  

#### 259Crown application: Her MajestyS

Nothing in this Act affects Her Majesty in Her private capacity.

### Commencement and short titleS

#### 260CommencementS

(1)This section, sections 254, 255, 257, 258, 259 and 261 and paragraphs 9(12) and 10(14) of schedule 4 come into force on the                        day after Royal Assent.                  

(2)The other provisions of this Act come into force on such day as the Scottish Ministers may by order appoint.                  

(3)An order under subsection (2) may include transitional, transitory or saving provision.                  

#### 261Short titleS

The short title of this Act is the Revenue Scotland and Tax Powers Act 2014.

## SCHEDULE 1SRevenue Scotland

 (introduced by section 2(3))

### MembershipS

1(1)Revenue Scotland is to consist of no fewer than 5 and no more than 9 members appointed by the Scottish Ministers.S

(2)Ministers are to appoint one of the members to chair Revenue Scotland (“the Chair”).

(3)Ministers may by order amend sub-paragraph (1) so as to substitute a different number for the minimum or maximum number of                        members for the time being specified there.

(4)Membership of Revenue Scotland is for such period and on such terms as Ministers may determine.

(5)A member may resign by giving notice in writing to Ministers.

(6)A person who is (or who has been) a member may be reappointed.

### DisqualificationS

2(1)A person may not be appointed as a member of Revenue Scotland (and may not continue as a member) if that person—S

(a)is (or becomes)—

(i)a member of the Scottish Parliament,

(ii)a member of the House of Commons,

(iii)a member of the National Assembly for Wales,

(iv)a member of the Northern Ireland Assembly,

(v)a member of the European Parliament,

(vi)a councillor of any local authority,

(vii)a member of the Scottish Government,

(viii)a Minister of the Crown,

(ix)an office-holder of the Crown in right of Her Majesty's Government in the United Kingdom,

(x)an office-holder in the Scottish Administration,

(xi)a civil servant,

(b)is (or has been) insolvent,

(c)is (or has been) disqualified as a company director under the Company Directors Disqualification Act 1986 (c.46) (or any analogous                        disqualification provision, anywhere in the world), or

(d)is (or has been) disqualified as a charity trustee under the Charities and Trustee Investment (Scotland) Act 2005 (asp 10)                        (or any analogous disqualification provision, anywhere in the world).

(2)For the purposes of sub-paragraph (1)(b) a person is (or has been) insolvent if—

(a)the person's estate is or has been sequestrated,

(b)the person has granted a trust deed for creditors or has made a composition or arrangement with creditors,

(c)the person is (or has been) the subject of any other kind of arrangement analogous to those described in paragraphs (a) and                        (b), anywhere in the world.

### Removal of membersS

3SThe Scottish Ministers may, by giving notice in writing, remove a member if—

(a)any of sub-paragraphs (1)(a) to (d) of paragraph 2 apply to the member,

(b)the member has been absent from meetings of Revenue Scotland for a period longer than 6 months without permission from Revenue                        Scotland, or

(c)Ministers consider that the member is otherwise unfit to be a member or is unable to carry out the member's functions.

### Remuneration and expensesS

4(1)Revenue Scotland may pay to—S

(a)its members, and

(b)the members of any committee established by it,

such remuneration as it may, with the approval of the Scottish Ministers, determine.

(2)Revenue Scotland may pay to—

(a)its members, and

(b)the members of any committee established by it,

such sums as it may, with the approval of Ministers, determine by way of reimbursement of expenses incurred by them in carrying                     out their functions.                  

### CommitteesS

5(1)Revenue Scotland may establish committees for any purpose relating to its functions.S

(2)Revenue Scotland may determine the composition of its committees.

(3)Revenue Scotland may appoint persons who are not members of Revenue Scotland to be members of a committee, but those persons                        are not entitled to vote at meetings of the committee.

### ProcedureS

6(1)Revenue Scotland may regulate its own procedure (including quorum) and that of any committee.S

(2)The validity of any proceedings or acts of Revenue Scotland (or of any committee) is not affected by—

(a)any vacancy in its membership,

(b)any defect in the appointment of a member, or

(c)disqualification of a person as a member after appointment.

### Internal delegation by Revenue ScotlandS

7(1)Revenue Scotland may authorise—S

(a)a member,

(b)a committee, or

(c)the chief executive or any other member of staff,

to exercise such of its functions (and to such extent) as it may determine.

(2)Sub-paragraph (1) does not affect Revenue Scotland's responsibility for the exercise of its functions.

### Chief executive and other staffS

8(1)Revenue Scotland is to employ a chief executive.S

(2)The person employed as chief executive may not be a member of Revenue Scotland.

(3)The first person employed as chief executive is to be appointed by the Scottish Ministers on such terms as they may determine.

(4)Before appointing the first chief executive, Ministers must consult the Chair (if a person holds that position).

(5)Each subsequent chief executive is to be appointed by Revenue Scotland on such terms as it may, with the approval of Ministers,                        determine.

(6)Revenue Scotland may appoint other members of staff on such terms as it may, with the approval of Ministers, determine.

### PowersS

9SIn addition to any other powers it has, Revenue Scotland may do anything which it considers—

(a)necessary or expedient in connection with the exercise of its functions,

(b)incidental or conducive to the exercise of those functions.

## SCHEDULE 2SThe Scottish Tax Tribunals

 (introduced by section 26(4)) 

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

## SCHEDULE 3SClaims for relief from double assessment and for repayment

 (introduced by section 114)

### IntroductionS

1SThis schedule applies to a claim under section 106, 107 or 108.

### Making of claimsS

2(1)A claim must be made in such form as Revenue Scotland may determine.S

(2)The form of claim must provide for a declaration to the effect that all the particulars given in the form are correctly stated                        to the best of the claimant's information and belief.

(3)The form of claim may require—

(a)a statement of the amount of tax that will be required to be discharged or repaid in order to give effect to the claim,

(b)such information as is reasonably required for the purpose of determining whether and, if so, the extent to which the claim                        is correct,

(c)the delivery with the claim of such statements and documents, relating to the information contained in the claim, as are reasonably                        required for the purpose mentioned in paragraph (b).

(4)A claim for repayment of tax may not be made unless the claimant has documentary evidence that the tax has been paid.

### Duty to keep and preserve recordsS

3(1)A person who wishes to make a claim must—S

(a)keep such records as may be needed to enable the person to make a correct and complete claim, and

(b)preserve those records in accordance with this paragraph.

(2)The records must be preserved until the latest of the following times—

(a)the end of the period of 3 years beginning with the day on which the claim was made,

(b)where there is an enquiry into the claim, or into an amendment of the claim, the time when the enquiry is completed,

(c)where the claim is amended and there is no enquiry into the amendment, the time when Revenue Scotland no longer has power                        to enquire into the amendment.

(3)The Scottish Ministers may by regulations—

(a)provide that the records required to be kept and preserved under this paragraph include, or do not include, records specified                        in the regulations, and

(b)provide that those records include supporting documents so specified.

(4)Regulations under this paragraph may make provision by reference to things specified in a notice published by Revenue Scotland                        in accordance with the regulations (and not withdrawn by a subsequent notice).

(5)“Supporting documents” includes accounts, books, deeds, contracts, vouchers and receipts.

### Preservation of information etc.S

4SThe duty under paragraph 3 to preserve records may be satisfied—

(a)by preserving them in any form and by any means, or

(b)by preserving the information contained in them in any form and by any means, subject to any conditions or exceptions specified                        by Revenue Scotland.

### Penalty for failure to keep and preserve recordsS

5(1)A person (“P”) who fails to comply with paragraph 3 in relation to a claim that the person makes is liable to a penalty not                        exceeding £3,000, subject to the following exception.S

(2)No penalty is incurred if Revenue Scotland is satisfied that any facts that it reasonably requires to be proved, and that                        would have been proved by the records, are proved by other documentary evidence provided to it.

### Reasonable excuse for failure to keep and preserve recordsS

6(1)If P satisfies Revenue Scotland or (on appeal) the tribunal that there is a reasonable excuse for a failure to comply with                        paragraph 3, liability to a penalty under paragraph 5 does not arise in relation to that failure.S

(2)For the purposes of sub-paragraph (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.

### Assessment of penalties under paragraph 5S

7(1)Where a person becomes liable for a penalty under paragraph 5, Revenue Scotland must—S

(a)assess the penalty, and

(b)notify the person.

(2)An assessment of a penalty under paragraph 5 must be made within the period of 12 months beginning with the date on which                        the person became liable to the penalty.

### Enforcement of penalties under paragraph 5S

8(1)A penalty under paragraph 5 must be paid—S

(a)before the end of the period of 30 days beginning with the date on which the notification under paragraph 7 was issued,

(b)if a notice of review against the penalty is given, before the end of the period of 30 days beginning with the date on which                        the review is concluded,

(c)if, following review, mediation is entered into, before the end of the period of 30 days beginning with the date either Revenue                        Scotland or the person who gave the notice of review gave notice of withdrawal from mediation, or

(d)if a notice of an appeal against the penalty is given, before the end of the period of 30 days beginning with the date on                        which the appeal is determined or withdrawn.

(2)A penalty under paragraph 5 is to be treated for enforcement purposes as an assessment to tax.

### Power to change penalty provisions in paragraphs 5 to 8S

9(1)The Scottish Ministers may by regulations make provision (or further provision) about penalties under paragraphs 5 to 8.S

(2)Regulations under sub-paragraph (1) may include 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 sub-paragraph (1) may not create criminal offences.

(4)Regulations under sub-paragraph (1) may modify any enactment (including this Act).

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

### Amendment of claim by claimantS

10(1)The claimant may amend the claim by notice to Revenue Scotland.S

(2)No such amendment may be made—

(a)more than 12 months after the day on which the claim was made, or

(b)if Revenue Scotland gives notice under paragraph 13 (notice of enquiry), during the period—

(i)beginning with the day on which notice is given, and

(ii)ending with the day on which the enquiry under that paragraph is completed.

### Correction of claim by Revenue ScotlandS

11(1)Revenue Scotland may by notice to the claimant amend a claim so as to correct obvious errors or omissions in the claim (whether                        errors of principle, arithmetical mistakes or otherwise).S

(2)No such correction may be made—

(a)more than 9 months after the day on which the claim was made, or

(b)if Revenue Scotland gives notice under paragraph 13 (notice of enquiry), during the period—

(i)beginning with the day on which notice is given, and

(ii)ending with the day on which the enquiry under that paragraph is completed.

(3)A correction under this paragraph is of no effect if, within 3 months from the date of issue of the notice of correction,                        the claimant gives notice rejecting the correction.

(4)Notice under sub-paragraph (3) must be given to Revenue Scotland.

### Giving effect to claims and amendmentsS

12(1)As soon as practicable after a claim is made, amended or corrected under paragraph 10 or 11, Revenue Scotland must give effect                        to the claim or amendment by discharge or repayment of tax.S

(2)Where Revenue Scotland enquires into a claim or amendment—

(a)sub-paragraph (1) does not apply until a closure notice is given under paragraph 14 (completion of enquiry), and then it applies                        subject to paragraph 16 (giving effect to amendments under paragraph 14), but

(b)Revenue Scotland may at any time before then give effect to the claim or amendment, on a provisional basis, to such extent                        as it thinks fit.

### Notice of enquiryS

13(1)Revenue Scotland may enquire into a person's claim or amendment of a claim if it gives the claimant notice of its intention                        to do so (“notice of enquiry”) before the end of the period of 3 years after the day on which the claim was made.S

(2)A claim or amendment that has been the subject of one notice of enquiry may not be the subject of another.

### Completion of enquiryS

14(1)An enquiry under paragraph 13 is completed—S

(a)when Revenue Scotland by notice (a “closure notice”) informs the claimant that it has completed its enquiries and states its                        conclusions, or

(b)no closure notice having been given, 3 years after the date on which the claim was made.

(2)A closure notice must be given no later than 3 years after the date on which the claim was made.

(3)A closure notice must either—

(a)state that in the opinion of Revenue Scotland no amendment of the claim is required, or

(b)if in Revenue Scotland's opinion the claim is insufficient or excessive, amend the claim so as to make good or eliminate the                        deficiency or excess.

(4)In the case of an enquiry into an amendment of a claim, sub-paragraph (3)(b) applies only so far as the deficiency or excess                        is attributable to the amendment.

(5)A closure notice takes effect when it is issued.

### Direction to complete enquiryS

15(1)The claimant may apply to the tribunal for a direction that Revenue Scotland gives a closure notice within a specified period.S

(2)Any such application is to be subject to the relevant provisions of tribunal rules.

(3)The tribunal must give a direction unless satisfied that Revenue Scotland has reasonable grounds for not giving a closure                        notice within a specified period.

### Giving effect to amendments under paragraph 14S

16(1)Within 30 days after the date of issue of a notice under paragraph 14(3)(b) (closure notice that amends claim), Revenue Scotland                        must give effect to the amendment by making such adjustment as may be necessary, whether—S

(a)by way of assessment on the claimant, or

(b)by discharge or repayment of tax.

(2)An assessment made under sub-paragraph (1) is not out of time if it is made within the time mentioned in that sub-paragraph.

### Appeals against amendments under paragraph 14S

17(1)An appeal may be brought against a conclusion stated or amendment made by a closure notice.S

(2)Notice of the appeal must be given—

(a)within 30 days after the date on which the closure notice was issued,

(b)to the tribunal.

(3)The notice of appeal must specify the grounds of appeal.

(4)Part 11 (reviews and appeals) applies in relation to an appeal under this paragraph as it applies in relation to an appeal                        under that Part.

(5)On an appeal against an amendment made by a closure notice, the tribunal may vary the amendment appealed against whether or                        not the variation is to the advantage of the appellant.

(6)Where any such amendment is varied, whether by the tribunal or by the order of a court, paragraph 16 (giving effect to amendments                        under paragraph 14) applies (with the necessary modifications) in relation to the variation as it applied in relation to the                        amendment.

## SCHEDULE 4SMinor and consequential modifications

 (introduced by section 256)

### Debtors (Scotland) Act 1987S

1(1)The Debtors (Scotland) Act 1987 (c.18) is amended as follows.S

(2)In section 1 (time to pay directions)—

(a)in subsection (5), after paragraph (d) insert—

“(da)in an action by or on behalf of Revenue Scotland for payment of any sum recoverable under or by virtue of the Revenue Scotland                           and Tax Powers Act 2014 (asp 16) or any other enactment in respect of a devolved tax, under a contract settlement or under                           a settlement agreement,”,                  

(b)after subsection (8A) insert—

“(8B)In paragraph (da) of subsection (5)—                  
          -  “contract settlement” means any agreement made in connection with any person's liability to make a payment to Revenue Scotland under or by virtue                              of the Revenue Scotland and Tax Powers Act 2014 (asp 16) or any other enactment in respect of a devolved tax,                         
          -  “devolved tax” has the meaning given by section 80A(4) of the Scotland Act 2012 (c. 46),                         
          -  “settlement agreement” has the meaning given by section 246(1) of the Revenue Scotland and Tax Powers Act 2014 (asp 16).”.                         

(3)In section 5 (time to pay orders)—

(a)in subsection (4), after paragraph (d) insert—

“(da)in relation to a debt including any sum recoverable by or on behalf of Revenue Scotland under or by virtue of the Revenue                           Scotland and Tax Powers Act 2014 (asp 16) or any other enactment in respect of a devolved tax, under a contract settlement                           or under a settlement agreement,”,                  

(b)after subsection (8A) insert—

“(8B)In paragraph (da) of subsection (4)—                  
          -  “contract settlement” means any agreement made in connection with any person's liability to make a payment to Revenue Scotland under or by virtue                              of the Revenue Scotland and Tax Powers Act 2014 (asp 16) or any other enactment in respect of a devolved tax,                         
          -  “devolved tax” has the meaning given by section 80A(4) of the Scotland Act 2012 (c. 46),                         
          -  “settlement agreement” has the meaning given by section 246(1) of the Revenue Scotland and Tax Powers Act 2014 (asp 16).”.                         

(4)In section 106 (interpretation), in the definition of “summary warrant”, after paragraph (e) insert—

“(f)section 225 of the Revenue Scotland and Tax Powers Act 2014 (asp 16).”.                  

### Environment Act 1995S

2(1)The Environment Act 1995 (c.25) is amended as follows.S

(2)In section 51 (provision of information)—

(a)after subsection (1) insert—

“(1A)Nothing in this section authorises the disclosure by SEPA of protected taxpayer information which was obtained by SEPA in                           connection with a function of Revenue Scotland delegated to it by Revenue Scotland under section 4(1)(b) of the Revenue Scotland                           and Tax Powers Act 2014 (asp 16).”,                  

(b)after subsection (5) insert—

“(6)In subsection (1A), “protected taxpayer information” has the meaning given by section 14 of the Revenue Scotland and Tax Powers Act 2014 (asp 16).”.                  

(3)In section 113 (disclosure of information)—

(a)after subsection (1) insert—

“(1A)Nothing in this section authorises the disclosure by SEPA to any person of protected taxpayer information which was obtained                           by SEPA in connection with a function of Revenue Scotland delegated to it by Revenue Scotland under section 4(1)(b) of the                           Revenue Scotland and Tax Powers Act 2014 (asp 16).”,                  

(b)in subsection (5), after the definition of “local enforcing authority” insert—

““protected taxpayer information” has the meaning given by section 14 of the Revenue Scotland and Tax Powers Act 2014 (asp 16),”.                  

### Public Finance and Accountability (Scotland) Act 2000S

3SIn section 9(1) of the Public Finance and Accountability (Scotland) Act 2000 (asp 1) (Keeper of the Registers of Scotland:                        financial arrangements), after “Sums” insert “ (other than payments of or in connection with land and buildings transaction tax) ”.

### Ethical Standards in Public Life etc. (Scotland) Act 2000S

4SIn the Ethical Standards in Public Life etc. (Scotland) Act 2000 (asp 7), in schedule 3 (devolved public bodies), at the appropriate                        place in alphabetical order insert— “ Revenue Scotland ”.

### Freedom of Information (Scotland) Act 2002S

5SIn the Freedom of Information (Scotland) Act 2002 (asp 13), in Part 2 of schedule 1 (Scottish public authorities), at the                        appropriate place in alphabetical order insert— “ Revenue Scotland ”.

### Public Appointments and Public Bodies etc. (Scotland) Act 2003S

6SIn the Public Appointments and Public Bodies etc. (Scotland) Act 2003 (asp 4), in schedule 2 (the specified authorities),                        under the heading “Executive bodies” at the appropriate place in alphabetical order insert— “ Revenue Scotland ”.

### Public Services Reform (Scotland) Act 2010S

7SIn the Public Services Reform (Scotland) Act 2010 (asp 8), in schedule 8 (listed public bodies), at the appropriate place                        in alphabetical order insert— “ Revenue Scotland ”.

### Public Records (Scotland) Act 2011S

8SIn the Public Records (Scotland) Act 2011 (asp 12), in the schedule, under the heading “Scottish Administration” at the appropriate                        place in alphabetical order insert— “ Revenue Scotland ”.

### Land and Buildings Transaction Tax (Scotland) Act 2013S

9(1)The LBTT(S) Act 2013 is amended as follows.S

(2)In section 10 (substantial performance without completion), after subsection (5) insert—

“(5A)For the period allowed for amendment of returns, see section 83 of the Revenue Scotland and Tax Powers Act 2014 (asp 16).”.                  

(3)In section 11 (contract providing for conveyance to third party), after subsection (6) insert—

“(6A)For the period allowed for amendment of returns, see section 83 of the Revenue Scotland and Tax Powers Act 2014 (asp 16).”.                  

(4)In section 27 (reliefs), after subsection (2) insert—

“(2A)For the period allowed for amendment of returns, see section 83 of the Revenue Scotland and Tax Powers Act 2014 (asp 16).”.                  

(5)In section 32 (contingency ceases or consideration ascertained: less tax payable)—

(a)in subsection (2)(b), after “Authority” insert “ under section 107 of the Revenue Scotland and Tax Powers Act 2014 (asp 16) ”,

(b)after subsection (2) insert—

“(2A)For the period allowed for amendment of returns, see section 83 of the Revenue Scotland and Tax Powers Act 2014 (asp 16).”.                  

(6)In section 35 (form and content of returns), in subsection (1)—

(a)the word “and” after paragraph (a) is repealed,

(b)after paragraph (b) insert “, and 

(c)be made in such manner as specified by the Tax Authority.”.                  

(7)Section 37 (amendment of returns) is repealed.

(8)After section 37 insert—

#### “37ACommunications from taxpayers to the Tax Authority

(1)Any notice, application or other thing that a person is required or permitted by provision made in or under this Act to give                           to the Tax Authority must comply with the requirements set out in subsection (2).                  

(2)The requirements are that the thing—                  

(a)must be in the form specified by the Tax Authority,                  

(b)must contain the information specified by the Tax Authority, and                  

(c)must be given in the manner specified by the Tax Authority.                  

(3)Subsections (1) and (2) are subject to any different provision made in or under this Act.”.                  

(9)In section 41(2) (application to defer payment in case of contingent or uncertain consideration), subsection (2) is repealed.

(10)In section 48 (joint buyers), after subsection (3) insert—

“(3A)See also section 247 of the Revenue Scotland and Tax Powers Act 2014 (asp 16) (reviews, appeals etc. where joint buyers).”.                  

(11)In section 50 (trusts), after subsection (2) insert—

“(3)See also section 248 of the Revenue Scotland and Tax Powers Act 2014 (asp 16) (reviews, appeals etc.: trustees).”.                  

(12)In section 54 (the Tax Authority)—

(a)in subsection (1), for “the Scottish Ministers” substitute “ Revenue Scotland ”,

(b)subsection (2) is repealed.

(13)Section 55 (delegation of functions to Keeper) is repealed.

(14)Section 56 (review and appeal) is repealed.

(15)In section 63(2)(a) (meaning of “effective date” of transaction), for “settlement” substitute “ completion ”.

(16)In section 68 (subordinate legislation)—

(a)in subsection (2), paragraph (h) is repealed,

(b)in subsection (3), paragraph (c) is repealed,

(c)after subsection (6) insert—

“(6A)Subsection (4)(b) is without prejudice to—                  

(a)anything previously done by reference to an order mentioned in subsection (5), or                  

(b)the making of a new order.”.                  

(17)In section 70(1) (commencement), “55,” is repealed.

(18)In schedule 2 (chargeable consideration), in paragraph 16(1)(a)(ii), for “1982” substitute “ 1992 ”.

(19)In schedule 5 (multiple dwellings relief), in paragraph 18(b), for “effect” substitute “ effective ”.

(20)In schedule 10 (group relief)—

(a)in paragraph 1(2), after “withdrawn” insert— “ Part 3A provides for recovery of tax where relief is withdrawn, ”,

(b)after paragraph 42 insert—

#### **“PART 3A**SRecovery of relief

##### 42ARecovery of relief

42AThis Part applies where—                  

(a)relief under this schedule is withdrawn or partially withdrawn and tax is chargeable,                  

(b)the amount so chargeable has been finally determined, and                  

(c)the whole or part of the amount so chargeable is unpaid 6 months after the date on which it became payable.                  

42BThe following persons may, by notice under paragraph 42E, be required to pay the unpaid tax—

(a)the seller,                  

(b)any company that at any relevant time was a member of the same group as the buyer and was above it in the group structure,                  

(c)any person who at any relevant time was a controlling director of the buyer or a company having control of the buyer.                  

42CFor the purposes of paragraph 42B(b)—

(a)a “relevant time” means any time between the effective date of the transaction which was exempt from charge by virtue of this schedule and                           the buyer ceasing to be a member of the same group as the seller, and                  

(b)a company (“company A”) is “above” another company (“company B”) in a group structure if company B, or another company that                           is above company B in the group structure, is a 75% subsidiary of company A.                  

42DIn paragraph 42B(c)—
          -  “director”, in relation to a company, has the meaning given by section 67(1) of the Income Tax (Earnings and Pensions) Act 2003 (c.1)                              (read with subsection (2) of that section) and includes a person falling within section 452(1) of the Corporation Tax Act                              2010 (c.4),                         
          -  “controlling director”, in relation to a company, means a director of the company who has control of it (construing control in accordance with                              sections 450 and 451 of the Corporation Tax Act 2010 (c.4)).                         

##### 42ERecovery of relief: supplementary

42EThe Tax Authority may give notice to a person within paragraph 42B requiring that person within 30 days of receipt of the                           notice to pay the amount that remains unpaid.                  

42FAny such notice must be given before the end of the period of 3 years beginning with the date of the final determination mentioned                           in paragraph 42A(b).

42GThe notice must state the amount required to be paid by the person to whom the notice is given.

42HThe notice has effect—

(a)for the purposes of the recovery from that person of the amount required to be paid and of interest on that amount, and                  

(b)for the purpose of appeals,                  

as if it were a notice of a Revenue Scotland assessment and that amount were an amount of tax due from that person.                  

42IA person who has paid an amount in pursuance of a notice under paragraph 42E may recover that amount from the buyer.

42JA payment in pursuance of a notice under paragraph 42E is not allowed as a deduction in computing any income, profits or losses                           for any tax purpose.

42KIn paragraph 42H, “Revenue Scotland assessment” has the same meaning as in section 100 of the Revenue Scotland and Tax Powers Act 2014 (asp 16).”.

(21)In schedule 11 (reconstruction relief and acquisition relief)—

(a)in paragraph 1(2), after “withdrawn” insert— “ Part 4A provides for recovery of tax where relief is withdrawn, ”,

(b)in paragraph 5, for “(c) and (d)” substitute “ (b) and (c) ”,

(c)in paragraph 9(a), for second “person” substitute “ persons ”,

(d)after paragraph 35 insert—

#### **“PART 4A**SRecovery of relief

##### 35ARecovery of relief

35AThis Part applies where—                  

(a)relief under Part 2 or Part 3 of this schedule is withdrawn or partially withdrawn,                  

(b)the amount of tax chargeable has been finally determined, and                  

(c)the whole or part of the amount so chargeable is unpaid 6 months after the date on which it became payable.                  

35BThe following persons may, by notice under paragraph 35E, be required to pay the unpaid tax—

(a)any company that at any relevant time was a member of the same group as the acquiring company and was above it in the group                           structure,                  

(b)any person who at any relevant time was a controlling director of the acquiring company or a company having control of the                           acquiring company.                  

35CFor the purposes of paragraph 35B—

(a)“relevant time” means any time between the effective date of the relevant transaction and the change of control by virtue of which tax is                           chargeable, and                  

(b)a company (“company A”) is “above” another company (“company B”) in a group structure if company B, or another company that                           is above company B in the group structure, is a 75% subsidiary of company A.                  

35DIn paragraph 35B(b)—
          -  “director”, in relation to a company, has the meaning given by section 67(1) of the Income Tax (Earnings and Pensions) Act 2003 (c.1)                              (read with subsection (2) of that section) and includes a person falling within section 452(1) of the Corporation Tax Act                              2010 (c.4),                         
          -  “controlling director”, in relation to a company, means a director of the company who has control of it (construing control in accordance with                              sections 450 and 451 of the Corporation Tax Act 2010 (c.4)).                         

##### 35ERecovery of relief: supplementary

35EThe Tax Authority may give notice to a person within paragraph 35B requiring that person within 30 days of receipt of the                           notice to pay the amount that remains unpaid.                  

35FAny such notice must be given before the end of the period of 3 years beginning with the date of the final determination mentioned                           in paragraph 35A(b).

35GThe notice must state the amount required to be paid by the person to whom the notice is given.

35HThe notice has effect—

(a)for the purposes of the recovery from that person of the amount required to be paid and of interest on that amount, and                  

(b)for the purpose of appeals,                  

as if it were a notice of a Revenue Scotland assessment and that amount were an amount of tax due from that person.                  

35IA person who has paid an amount in pursuance of a notice under paragraph 35E may recover that amount from the acquiring company.

35JA payment in pursuance of a notice under paragraph 35E is not allowed as a deduction in computing any income, profits or losses                           for any tax purpose.

35KIn paragraph 35H, “Revenue Scotland assessment” has the same meaning as in section 100 of the Revenue Scotland and Tax Powers Act 2014 (asp 16).”.

(22)In schedule 17 (partnerships)—

(a)in paragraph 35 (election by property-investment partnership)—

(i)in sub-paragraph (1), for “paragraph” substitute “ Part ”,

(ii)after sub-paragraph (3) insert—

“(3A)For the period allowed for amendment of returns, see section 83 of the Revenue Scotland and Tax Powers Act 2014 (asp 16).”,                  

(b)in paragraph 38 (application of group relief to certain partnership transactions), in sub-paragraph (4), for “42” substitute                        “ 42K ”.

(23)In schedule 19 (leases), in paragraph 25 (agreement for lease substantially performed etc.), after sub-paragraph (7) insert—

“(7A)For the period allowed for amendment of returns, see section 83 of the Revenue Scotland and Tax Powers Act 2014 (asp 16).”.                  

Commencement Information

I10Sch. 4 para. 9 not in force at Royal Assent; Sch. 4 para. 9(12) in force at 25.9.2014, see s. 260(1)

### Landfill Tax (Scotland) Act 2014S

10(1)The LT(S) Act 2014 is amended as follows.S

(2)In section 15 (weight of materials disposed of)—

(a)in subsection (2)(c), for “an authorised person” substitute “ a designated officer ”,

(b)in subsection (4), for “an authorised person” substitute “ a designated officer ”,

(c)after subsection (6) insert—

“(7)The regulations may include provision for penalties where a person fails to comply with a requirement imposed by or under                           the regulations.”.                  

(3)In section 18 (credit: general), after subsection (6) insert—

“(6A)The regulations may provide for section 107 of the Revenue Scotland and Tax Powers Act 2014 (asp 16) to apply (with or without                           modifications) to a claim under this section by a person who has ceased to be registrable as it applies to a claim under that                           section.”.                  

(4)In section 22 (registration), in subsection (9), paragraph (b) is repealed.

(5)In section 23 (information required to keep register up to date), in subsection (2), paragraph (b) is repealed.

(6)In section 25 (accounting for tax and time for payment), for paragraph (b) substitute—

“(b)make returns in relation to such accounting periods,”.                  

(7)After section 25 insert—

#### “25AForm and content of returns

(1)A return under this Act must—                  

(a)be in the form specified by the Tax Authority,                  

(b)contain such information specified by the Tax Authority, and                  

(c)be made in such manner as specified by the Tax Authority.                  

(2)The Tax Authority may specify different forms and information for different kinds of return.                  

(3)A return is treated as containing any information provided by the person making it for the purpose of completing the return.                  

#### 25BCommunications from taxpayers to the Tax Authority

(1)Any notice, application or other thing that a person is required or permitted by provision made in or under this Act to give                           to the Tax Authority must comply with the requirements set out in subsection (2).                  

(2)The requirements are that the thing—                  

(a)must be in the form specified by the Tax Authority,                  

(b)must contain the information specified by the Tax Authority, and                  

(c)must be given in the manner specified by the Tax Authority.                  

(3)Subsections (1) and (2) are subject to any different provision made in or under this Act.”.                  

(8)Section 26 (time of disposal where invoice issued) is repealed.

(9)Section 28 (evidence about tax status) is repealed.

(10)Section 29 (recovery of overpaid tax) is repealed.

(11)In section 30(3)(a) (information: material at landfill sites), for “an authorised person” substitute “ a designated officer ”.

(12)In section 31(1) (information: site restoration)—

(a)in paragraph (a), “in writing” is repealed,

(b)in paragraph (b), “written” is repealed.

(13)Sections 32 and 33 (record keeping) are repealed.

(14)In section 34 (the Tax Authority)—

(a)in subsection (1), for “the Scottish Ministers” substitute “ Revenue Scotland ”,

(b)subsection (2) is repealed.

(15)Section 35 (delegation of functions to SEPA) is repealed.

(16)Section 36 (review and appeal) is repealed.

(17)In section 39 (interpretation), for the definition of “authorised person” substitute—

““designated officer” has the meaning given by section 252 of the Revenue Scotland and Tax Powers Act 2014 (asp 16) (general interpretation),”.                  

(18)In section 41 (subordinate legislation)—

(a)in subsection (2)—

(i)after paragraph (b) insert—

“(ba)regulations under section 15 which make provision of the type mentioned in section 15(7),”,                  

(ii)paragraph (d) is repealed,

(b)in subsection (7), paragraph (c) is repealed (but not the word “and” immediately following it).

(19)In section 43 (commencement), “35,” is repealed.

Commencement Information

I11Sch. 4 para. 10 not in force at Royal Assent; Sch. 4 para. 10(14) in force at 25.9.2014, see s. 260(1)

### Tribunals (Scotland) Act 2014S

11(1)The Tribunals (Scotland) Act 2014 (asp 10) is amended as follows.S

(2)In schedule 1 (listed tribunals), in Part 1, after paragraph 10 (the entry for “A Police Appeals Tribunal”) insert—

“10AThe First-tier Tax Tribunal for Scotland

10BThe Upper Tax Tribunal for Scotland”.

(3)In Part 2 of that schedule, after paragraph 13(10) insert—

“(10A)The entries in paragraphs 10A and 10B relate to the functions exercisable by the First-tier Tax Tribunal for Scotland and                           the Upper Tax Tribunal for Scotland by virtue of the Revenue Scotland and Tax Powers Act 2014 or any other enactment.”.                  

### Procurement Reform (Scotland) Act 2014S

12SIn the Procurement Reform (Scotland) Act 2014 (asp 12), in Part 1 of the schedule (contracting authorities: Scottish Administration                        and Scottish Parliament), after paragraph 13 (the entry for the Scottish Housing Regulator) insert—

“13ARevenue Scotland”.

## SCHEDULE 5SIndex of defined expressions

 (introduced by section 253)