# 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. 

Commencement Information

I1S. 1 in force at 1.1.2015 by S.S.I. 2014/370, art. 2, **sch.**

## **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.                  

Commencement Information

I2S. 2 in force at 1.1.2015 by S.S.I. 2014/370, art. 2, **sch.**

### 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).                  

Commencement Information

I3S. 3 in force at 1.1.2015 by S.S.I. 2014/370, art. 2, **sch.**

### 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.                  

Commencement Information

I4S. 4 in force at 1.1.2015 by S.S.I. 2014/370, art. 2, **sch.**

### 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.                  

Commencement Information

I5S. 5 in force at 1.1.2015 by S.S.I. 2014/370, art. 2, **sch.**

#### 6RewardsS

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

Commencement Information

I6S. 6 in force at 1.1.2015 by S.S.I. 2014/370, art. 2, **sch.**

### 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.                  

Commencement Information

I7S. 7 in force at 1.1.2015 by S.S.I. 2014/370, art. 2, **sch.**

### 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.                  

Commencement Information

I8S. 8 in force at 1.1.2015 by S.S.I. 2014/370, art. 2, **sch.**

### 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.                  

Commencement Information

I9S. 9 in force at 1.1.2015 by S.S.I. 2014/370, art. 2, **sch.**

### 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.                  

Commencement Information

I10S. 10 in force at 1.1.2015 by S.S.I. 2014/370, art. 2, **sch.**

### 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.                  

Commencement Information

I11S. 11 in force at 7.11.2014 for specified purposes by S.S.I. 2014/278, art. 2, **sch.**

I12S. 11 in force at 1.1.2015 in so far as not already in force by S.S.I. 2014/370, art. 2, **sch.**

### 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.                  

Commencement Information

I13S. 12 in force at 1.1.2015 by S.S.I. 2014/370, art. 2, **sch.**

## **PART 3**SInformation

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

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

(1)A relevant person may use information held by the person in connection with a function in connection with any other function.                  

(2)In this section and section 14 “relevant person” means any or all of the following persons—                  

(a)Revenue Scotland,                  

(b)a member of Revenue Scotland,                  

(c)a committee of Revenue Scotland (and a member of any committee),                  

(d)the chief executive or any other member of staff of Revenue Scotland,                  

(e)a person to whom Revenue Scotland has delegated any of its functions,                  

(f)a member of staff of a person mentioned in paragraph (e).                  

(3)In this section and section 14 references to a “function” are references to—                  

(a)a function of any of the persons mentioned in subsection (2)(a) to (d),                  

(b)in the case of a person mentioned in subsection (2)(e)—                  

(i)a function which Revenue Scotland has delegated to the person, and                  

(ii)a function under any other enactment,                  

(c)in the case of a member of staff of a person mentioned in subsection (2)(e)—                  

(i)a function which Revenue Scotland has delegated to the person and which the member of staff is exercising, and                  

(ii)a function of the person under any other enactment which the member of staff is exercising.                  

Commencement Information

I14S. 13 in force at 1.1.2015 by S.S.I. 2014/370, art. 2, **sch.**

### Protected taxpayer informationS

#### 14Protected taxpayer informationS

(1)“Protected taxpayer information” means information relating to a person—                  

(a)which is held by a relevant person in connection with a function of Revenue Scotland, and                  

(b)by which a person may be identified.                  

(2)Subsection (1)(a) does not apply to information about internal administrative arrangements of Revenue Scotland or of a person                        to whom Revenue Scotland has delegated any of its functions (whether the information relates to members or staff of Revenue                        Scotland or of such a person or to other persons).                  

(3)For the purposes of subsection (1)(b) a person may be identified by information if—                  

(a)the person's identity is specified in the information, or                  

(b)the person's identity can be deduced from the information (whether from that information on its own or from that information                        taken together with other information disclosed by or on behalf of Revenue Scotland).                  

Commencement Information

I15S. 14 in force at 1.1.2015 by S.S.I. 2014/370, art. 2, **sch.**

#### 15Confidentiality of protected taxpayer informationS

(1)A relevant official must not disclose protected taxpayer information unless the disclosure is permitted by subsection (3).                  

(2)In this section and section 16 “relevant official” means any individual who is or was—                  

(a)a member of Revenue Scotland,                  

(b)a member of a committee of Revenue Scotland,                  

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

(d)exercising functions on behalf of Revenue Scotland.                  

(3)A disclosure is permitted by this subsection if—                  

(a)it is made with the consent of each person to whom the information relates,                  

(b)it is made in accordance with any provision made by or under this Act or any other enactment requiring or permitting the disclosure,                  

(c)it is made for the purposes of obtaining services in connection with a function of Revenue Scotland,                  

(d)it is made for the purposes of civil proceedings,                  

(e)it is made for the purposes of a criminal investigation or criminal proceedings or for the purposes of the prevention or detection                        of crime,                  

(f)it is made in pursuance of an order of a court or tribunal,                  

(g)it is made to a person exercising functions on behalf of Revenue Scotland (other than a person to whom Revenue Scotland has                        delegated any of its functions) for the purposes of those functions.                  

Modifications etc. (not altering text)

C1S. 15 modified (1.1.2015) by The Revenue Scotland and Tax Powers Act 2014 (Consequential Provisions and Modifications) Order 2014 (S.I. 2014/3294), arts. 1(2), **4(2)**

Commencement Information

I16S. 15 in force at 1.1.2015 by S.S.I. 2014/370, art. 2, **sch.**

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

(1)Each relevant official must make a declaration acknowledging the obligation of confidentiality under section 15.                  

(2)A declaration must be made—                  

(a)as soon as reasonably practicable following the person's appointment, and                  

(b)in such form and manner as Revenue Scotland may determine.                  

(3)For the purposes of subsection (2)(a)—                  

(a)the renewal of a fixed term appointment is not to be treated as an appointment,                  

(b)a person mentioned in section 15(2)(d) is to be treated as appointed when the person begins to exercise functions on behalf                        of Revenue Scotland.                  

Commencement Information

I17S. 16 in force at 1.1.2015 by S.S.I. 2014/370, art. 2, **sch.**

### Other limits on use and disclosure of informationS

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

Sections 13(1) and 15(3) are subject to any provision which prohibits or restricts the use of information and which is contained                     in—                  

(a)this Act,                  

(b)any other enactment,                  

(c)an international or other agreement to which the United Kingdom, Her Majesty's Government or the Scottish Ministers is or                        are party.                  

Commencement Information

I18S. 17 in force at 1.1.2015 by S.S.I. 2014/370, art. 2, **sch.**

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

(1)This section applies to information that—                  

(a)is held by the Keeper in connection with a function which Revenue Scotland has delegated to the Keeper, and                  

(b)is protected taxpayer information.                  

(2)The Keeper may not use that information in connection with the Keeper's functions under section 108 of the Land Registration                        etc. (Scotland) Act 2012 (asp 5).                  

Commencement Information

I19S. 18 in force at 1.1.2015 by S.S.I. 2014/370, art. 2, **sch.**

### Offence of wrongful disclosureS

#### 19Wrongful disclosure of protected taxpayer informationS

(1)A person commits an offence if the person discloses protected taxpayer information contrary to section 15(1).                  

(2)It is a defence for a person charged with an offence under subsection (1) to prove that the person reasonably believed—                  

(a)that the disclosure was lawful under section 15, or                  

(b)that the information had already lawfully been made available to the public.                  

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

(a)on summary conviction, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum (or                        both),                  

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

(4)This section does not affect the pursuit of any remedy or the taking of any action in relation to a contravention of section                        15(1).                  

Commencement Information

I20S. 19 in force at 1.1.2015 by S.S.I. 2014/370, art. 2, **sch.**

## **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

##### 26MembersS

(1)The First-tier Tribunal is to consist of its ordinary and legal members.                  

(2)The Upper Tribunal is to consist of its legal and judicial members.                  

(3)The President of the Tax Tribunals is, by virtue of holding that position, a member of both the First-tier Tribunal and the                        Upper Tribunal.                  

(4)Schedule 2 contains the following further provision about members of the Tax Tribunals—                  

(a)Part 1 contains provisions about the eligibility for and appointment to—                  

(i)the position of President of the Tax Tribunals,                  

(ii)ordinary and legal membership of the First-tier Tribunal,                  

(iii)legal membership of the Upper Tribunal,                  

(b)Part 2 contains provision about the terms and conditions on which members of the tribunals hold their positions,                  

(c)Part 3 contains provision about investigation of members' conduct and imposition of disciplinary measures, and                  

(d)Part 4 contains provision about the assessment of members' fitness and removal from position.                  

Commencement Information

I21S. 26(4) in force at 7.11.2014 for specified purposes by S.S.I. 2014/278, art. 2, **sch.**

I22S. 26(4) in force at 1.1.2015 for specified purposes by S.S.I. 2014/370, art. 2, **sch.**

#### 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

##### 32Voting for decisionsS

The Scottish Ministers may by regulations make provision for the purposes of sections 29(1) and 30(1) in so far as a matter                     in a case before the First-tier Tribunal or the Upper Tribunal is to be decided by two or more members of the tribunal, including—                  

(a)for a decision to be made unanimously or by majority,                  

(b)where a decision is to be made by majority, for the chairing member to have a casting vote in the event of a tie.                  

Commencement Information

I25S. 32 in force at 7.11.2014 by S.S.I. 2014/278, art. 2, **sch.**

##### 33Chairing membersS

(1)Tribunal rules may make provision for determining the question as to who is to be the chairing member where a matter in a                        case before the First-tier Tribunal or the Upper Tribunal is to be decided by two or more members of the tribunal.                  

(2)Rules making provision as described in subsection (1) may (in particular)—                  

(a)allow the President of the Tax Tribunals to determine the question,                  

(b)specify criteria as against which the question is to be determined (including by reference to type of member or particular                        expertise).                  

Commencement Information

I26S. 33 in force at 7.11.2014 by S.S.I. 2014/278, art. 2, **sch.**

### CHAPTER 5SAppeal of decisions

#### Appeal from First-tier TribunalS

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

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

#### Appeal from Upper TribunalS

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

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

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

#### Further provision on permission to appealS

##### 39Process for permissionS

(1)The Scottish Ministers may by regulations specify a time limit within which the permission required by section 34(3) or 36(3)                        must be sought.                  

(2)A refusal to give the permission required by section 34(3) or 36(3) is not appealable under section 34 or 36.                  

Commencement Information

I31S. 39(1) in force at 7.11.2014 for specified purposes by S.S.I. 2014/278, art. 2, **sch.**

### CHAPTER 6SSpecial jurisdiction

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

#### 41Procedural steps where petition remittedS

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

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

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

### CHAPTER 7SPowers and enforcement

#### 45Venue for hearingsS

(1)Each of the First-tier Tribunal and the Upper Tribunal may be convened at any time and place in Scotland to hear or decide                        a case or for any other purpose relating to its functions.                  

(2)Subsection (1) is subject to any provision made by tribunal rules as to the question of when and where in Scotland the Tax                        Tribunals are to be convened (and such rules may allow the President of the Tax Tribunals to determine the question).                  

Commencement Information

I34S. 45(2) in force at 7.11.2014 for specified purposes by S.S.I. 2014/278, art. 2, **sch.**

#### 46Conduct of casesS

(1)In relation to the things mentioned in subsection (3), each of the First-tier Tribunal and the Upper Tribunal has such powers,                        rights, privileges and other authority with respect to any case before it as are provided for in tribunal rules.                  

(2)Rules making provision for the purpose of subsection (1) may (in particular) do so in relation to any kind of authority by                        reference to any authority of a relevant description exercisable by the sheriff or the Court of Session.                  

(3)The things are—                  

(a)the attendance or examination of witnesses,                  

(b)the recovery, production or inspection of relevant materials,                  

(c)the commissioning of reports of any relevant type,                  

(d)other procedural, evidential or similar measures.                  

(4)In subsection (3)(b) “materials” means documents and other items.                  

Commencement Information

I35S. 46 in force at 7.11.2014 for specified purposes by S.S.I. 2014/278, art. 2, **sch.**

#### 47Enforcement of decisionsS

(1)A decision made by the First-tier Tribunal or the Upper Tribunal in any matter in a case before it is enforceable by the means                        provided for in tribunal rules.                  

(2)Subsection (1) applies to a decision—                  

(a)on the merits of such a case,                  

(b)as to—                  

(i)payment of a sum of money, or                  

(ii)expenses by virtue of section 48, or                  

(c)otherwise affecting the rights, obligations or interests of a party in such a case.                  

(3)Rules making provision for the purpose of subsection (1) may (in particular) do so in relation to a relevant order by reference                        to the means of enforcing an order of the sheriff or the Court of Session.                  

(4)In subsection (3) “relevant order” means an order of either of the Tax Tribunals giving effect to a decision to which subsection (1) applies.                  

Commencement Information

I36S. 47 in force at 7.11.2014 for specified purposes by S.S.I. 2014/278, art. 2, **sch.**

#### 48Award of expensesS

(1)In connection with proceedings in a case before the First-tier Tribunal or the Upper Tribunal, the tribunal may award expenses                        so far as allowed in accordance with tribunal rules.                  

(2)Where such expenses are awarded, the awarding tribunal is to specify by and to whom they are to be paid (and to what extent).                  

(3)Tribunal rules may make provision—                  

(a)for scales or rates of awardable expenses,                  

(b)for—                  

(i)such expenses to be set-off against any relevant sums,                  

(ii)interest at the specified rate to be chargeable on such expenses where unpaid,                  

(c)stating the general or particular factors to be taken into account when exercising discretion as to such expenses,                  

(d)about such expenses in other respects.                  

(4)Tribunal rules may make provision—                  

(a)for disallowing any wasted expenses,                  

(b)for requiring a person who has given rise to any wasted expenses to meet them.                  

(5)Rules making provision as described in subsection (3) or (4) may also prescribe meanings for “relevant sums”, “specified rate”                        and “wasted expenses” as used in this section.                  

Commencement Information

I37S. 48 in force at 7.11.2014 for specified purposes by S.S.I. 2014/278, art. 2, **sch.**

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

#### 50Offences in relation to proceedingsS

(1)The Scottish Ministers may by regulations make provision, in relation to proceedings before the First-tier Tribunal or the                        Upper Tribunal—                  

(a)for offences and penalties—                  

(i)for making a false statement in an application in a case,                  

(ii)for failure by a person to attend, or give evidence in, such proceedings when required to do so in accordance with tribunal                        rules,                  

(iii)for alteration, concealment or destruction by a person of, or failure by a person to produce, something that is required to                        be produced in such proceedings in accordance with tribunal rules,                  

(b)about the circumstances in which a person need not give evidence or produce something (for example, where a person could not                        be compelled to give evidence or produce something in proceedings in a case before the sheriff or in the Court of Session).                  

(2)The maximum penalties that may be provided for in regulations under subsection (1) are—                  

(a)for an offence triable summarily only, imprisonment for a term not exceeding 12 months or a fine not exceeding level 5 on                        the standard scale (or both),                  

(b)for an offence triable either summarily or on indictment—                  

(i)on summary conviction, imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum (or both),                  

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

(3)Before making regulations under subsection (1), the Scottish Ministers must obtain the Lord President's approval.                  

Commencement Information

I38S. 50 in force at 7.11.2014 by S.S.I. 2014/278, art. 2, **sch.**

### CHAPTER 8SPractice and procedure

#### Tribunal rules: generalS

##### 51Tribunal rulesS

(1)There are to be rules—                  

(a)regulating the practice and procedure to be followed in proceedings at—                  

(i)the First-tier Tribunal,                  

(ii)the Upper Tribunal, and                  

(b)containing provision of other sorts appropriate with respect to the Tax Tribunals (including in relation to the exercise by                        them of their functions).                  

(2)Rules of the kind mentioned in subsection (1) are to be known as Scottish Tax Tribunal Rules (and in this Act they are referred                        to as tribunal rules).                  

(3)Tribunal rules are to be made by the Scottish Ministers by regulations.                  

(4)Before making regulations under subsection (3), the Scottish Ministers must consult—                  

(a)the President of the Scottish Tribunals, and                  

(b)such other persons as they consider appropriate.                  

Commencement Information

I39S. 51 in force at 7.11.2014 by S.S.I. 2014/278, art. 2, **sch.**

##### 52Exercise of functionsS

(1)Tribunal rules may, in relation to any functions exercisable by the members of the Tax Tribunals—                  

(a)state—                  

(i)how a function is to be exercised,                  

(ii)who is to exercise a function,                  

(b)cause something to require further authorisation,                  

(c)permit something to be done on a person's behalf,                  

(d)allow a specified person to make a decision about any of those matters.                  

(2)Tribunal rules may make provision relying on the effect of directions issued, or to be issued, under section 57.                  

Commencement Information

I40S. 52 in force at 7.11.2014 by S.S.I. 2014/278, art. 2, **sch.**

##### 53Extent of rule-makingS

(1)Tribunal rules may make—                  

(a)provision applying—                  

(i)equally to both of the First-tier Tribunal and the Upper Tribunal, or                  

(ii)specifically to one of them,                  

(b)particular provision for each of them about the same matter.                  

(2)Tribunal rules may make particular provision for different types of proceedings.                  

(3)Tribunal rules may make different provision for different purposes in any other respects.                  

(4)The generality of section 51 is not limited by—                  

(a)sections 54 to 56, or                  

(b)any other provisions of this Act about the content of tribunal rules.                  

Commencement Information

I41S. 53 in force at 7.11.2014 by S.S.I. 2014/278, art. 2, **sch.**

#### Particular mattersS

##### 54Proceedings and stepsS

(1)Tribunal rules may make provision about proceedings in a case before the Tax Tribunals.                  

(2)Rules making provision as described in subsection (1) may (in particular)—                  

(a)provide for the form and manner in which a case is to be brought,                  

(b)allow for the withdrawal of a case (with or without restrictions on subsequent proceedings as respects the same matter),                  

(c)set time limits for—                  

(i)making applications,                  

(ii)taking particular steps,                  

(d)enable two or more applications to be conjoined in certain circumstances,                  

(e)specify circumstances in which the tribunals may take particular steps on their own initiative.                  

Commencement Information

I42S. 54 in force at 7.11.2014 by S.S.I. 2014/278, art. 2, **sch.**

##### 55Hearings in casesS

(1)Tribunal rules may make provision about hearings in a case before the Tax Tribunals.                  

(2)Rules making provision as described in subsection (1) may (in particular)—                  

(a)provide for certain matters to be dealt with—                  

(i)without a hearing,                  

(ii)at a private hearing,                  

(iii)at a public hearing,                  

(b)require notice to be given of a hearing (and for the timing of such notice),                  

(c)specify persons who may—                  

(i)appear on behalf of a party in a case,                  

(ii)attend a hearing in order to provide support to a party or witness in a case,                  

(d)specify circumstances in which particular persons may appear or be represented at a hearing,                  

(e)specify circumstances in which a hearing may go ahead—                  

(i)at the request of a party in a case despite no notice of it having been given to another party in the case,                  

(ii)in the absence of a particular member chosen to exercise the function of deciding any matter in a case,                  

(f)enable two or more sets of proceedings to be taken concurrently at a hearing in certain circumstances,                  

(g)allow for an adjournment of a hearing for the purpose of giving the parties in a case an opportunity to use a process of negotiation                        or mediation for resolving a dispute to which the case relates,                  

(h)allow for the imposition of reporting restrictions for particular reasons arising in a case.                  

Commencement Information

I43S. 55 in force at 7.11.2014 by S.S.I. 2014/278, art. 2, **sch.**

##### 56Evidence and decisionsS

(1)Tribunal rules may, in connection with proceedings before the Tax Tribunals—                  

(a)make provision about the giving of evidence and the administering of oaths,                  

(b)modify the application of any other rules relating to either of those matters so far as they would otherwise apply to such                        proceedings.                  

(2)Tribunal rules may, in connection with proceedings before the Tax Tribunals, provide for the payment of expenses and allowances                        to a person who—                  

(a)gives evidence,                  

(b)produces a document, or                  

(c)attends such proceedings (or is required to do so).                  

(3)Tribunal rules may, in connection with proceedings before the Tax Tribunals, make provision by way of presumption (for example,                        as to the serving of something on somebody).                  

(4)Tribunal rules may make provision about decisions of the Tax Tribunals, including as to—                  

(a)the manner in which such decisions are to be made,                  

(b)the incorporation in such decisions of findings in fact,                  

(c)the recording, issuing, and publication of such decisions.                  

Commencement Information

I44S. 56 in force at 7.11.2014 by S.S.I. 2014/278, art. 2, **sch.**

#### 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

This Part makes provision about the assessment of devolved taxes including—

(a)taxpayers' duties in relation to tax records,                  

(b)the timing of tax returns,                  

(c)amendment and correction of tax returns by taxpayers and Revenue Scotland,                  

(d)enquiries by Revenue Scotland into taxpayers' self-assessments,                  

(e)determination by Revenue Scotland of tax due where no return is made,                  

(f)assessment by Revenue Scotland of tax due outwith enquiries where tax losses or other situations are brought about by taxpayers                        carelessly or deliberately, and                  

(g)claims for relief from double assessment and for repayment of tax.                  

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

#### Duties to keep recordsS

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

(1)A person who is required to make a tax return in relation to a devolved tax must—                  

(a)keep any records that may be needed to enable the person to make a correct and complete return, and                  

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

(2)The records mentioned in subsection (1) must be preserved until the end of the later of the relevant day and the date on which—                  

(a)an enquiry into the return is completed, or                  

(b)if there is no enquiry, a designated officer no longer has power to enquire into the return.                  

(3)A person who is liable to be registered for tax (a “registrable person”) must—                  

(a)keep any records that may be needed to enable the registrable person to comply with a requirement to notify Revenue Scotland                        of the person's intention—                  

(i)to carry out taxable activities, or                  

(ii)to cease to carry out taxable activities,                  

(b)make records relating to material at a landfill site or part of a landfill site, and                  

(c)preserve those records in accordance with this section.                  

(4)The records mentioned in subsection (3) must be preserved until the end of the relevant day.                  

(5)“The relevant day” in relation to records mentioned in subsection (1) means—                  

(a)the fifth anniversary of the day on which the return is made or, if the return is amended, the day notice of the amendment                        is given under section 83, or                  

(b)any earlier day that may be specified by Revenue Scotland.                  

(6)The “relevant day” in relation to records mentioned in subsection (3) means—                  

(a)in the case of records mentioned in subsection (3)(a), the fifth anniversary of the day on which the notice was given,                  

(b)in the case of records mentioned in subsection (3)(b), the fifth anniversary of the day on which the record was made, or                  

(c)in either case, any earlier day that may be specified by Revenue Scotland.                  

(7)Different days may be specified for different purposes under subsection (5)(b) or (6)(c).                  

(8)The records required to be kept and preserved under subsection (1) include—                  

(a)details of any relevant transaction (including relevant instruments relating to any transaction, in particular, any contract                        or conveyance, and any supporting maps, plans or similar documents),                  

(b)details of any relevant taxable activity,                  

(c)records of relevant payments, receipts and financial arrangements.                  

(9)The Scottish Ministers may by regulations—                  

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

(b)specify supporting documents that are required to be kept under this section.                  

(10)Regulations under this section 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).                  

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

Commencement Information

I45S. 74 in force at 7.11.2014 for specified purposes by S.S.I. 2014/278, art. 2, **sch.**

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

The duty under section 74 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 prescribed                        by the Scottish Ministers by regulations.                  

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

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

(1)A person (“P”) who fails to comply with section 74 in relation to a devolved tax is liable to a penalty not exceeding £3,000,                        subject to the following exception.                  

(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 Revenue Scotland.                  

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

(1)If P satisfies Revenue Scotland or (on appeal) the tribunal that there is a reasonable excuse for a failure to comply with                        section 74, liability to a penalty under section 76 does not arise in relation to that failure.                  

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

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

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

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

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

(1)Where a person becomes liable to a penalty under section 76, Revenue Scotland must—                  

(a)assess the penalty, and                  

(b)notify the person.                  

(2)An assessment of a penalty under section 76 must be made within the period of 12 months beginning with the date on which the                        person became liable to the penalty.                  

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

(1)A penalty under section 76 must be paid—                  

(a)before the end of the period of 30 days beginning with the date on which the notification under section 78 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 section 76 is to be treated for enforcement purposes as an assessment to tax.                  

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

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

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

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

(b)about the amounts of penalties,                  

(c)about the procedure for issuing penalties,                  

(d)about appealing penalties,                  

(e)about enforcing penalties.                  

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

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

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

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

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

(1)This section applies in relation to land and buildings transaction tax.                  

(2)The Scottish Ministers may by regulations make provision for the keeping and preservation of records in relation to land transactions                        that are not notifiable.                  

(3)Regulations under this section may require the buyer in a land transaction which is not notifiable to—                  

(a)keep such records as may be needed to enable the buyer to demonstrate that the transaction is not notifiable, and                  

(b)preserve those records in accordance with the regulations.                  

(4)The regulations may apply sections 74 to 79 (with or without modifications) to a buyer mentioned in subsection (3) as those                        sections apply to a person mentioned in section 74(1).                  

(5)Expressions used in this section and in the LBTT(S) Act 2013 have the meanings given in that Act.                  

Commencement Information

I46S. 81 in force at 7.11.2014 by S.S.I. 2014/278, art. 2, **sch.**

### CHAPTER 3STax returns

#### Filing datesS

##### 82Meaning of “filing date”S

In this Act “the filing date” in relation to a tax return is the date by which that return requires to be made by or under any enactment.                  

#### Amendment and correction of returnsS

##### 83Amendment of return by taxpayerS

(1)A person (the “taxpayer”) who has made a tax return may amend the return by notice to Revenue Scotland.                  

(2)An amendment under this section must be made by the end of the period of 12 months beginning with the relevant date (the “amendment                        period”).                  

(3)The relevant date is—                  

(a)the filing date, or                  

(b)such other date as the Scottish Ministers may by order prescribe.                  

(4)This section is subject to sections 87(3) and 93(4).                  

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

(1)Revenue Scotland may correct any obvious error or omission in a tax return.                  

(2)A correction under this section—                  

(a)is made by notice to the taxpayer, and                  

(b)is regarded as effecting an amendment of the return.                  

(3)The reference in subsection (1) to an error includes, for instance, an arithmetical mistake or an error of principle.                  

(4)A correction under this section must be made by the end of the period of 12 months beginning with the day on which the return                        was made.                  

(5)A correction under this section has no effect if the taxpayer rejects it by—                  

(a)during the amendment period, amending the return so as to reject the correction, or                  

(b)after that period, giving a notice rejecting the correction.                  

(6)A notice under subsection (5)(b) must be given to Revenue Scotland before the end of the period of 3 months beginning with                        the date of issue of the notice of correction.                  

### CHAPTER 4SRevenue Scotland enquiries

#### Notice and scope of enquiryS

##### 85Notice of enquiryS

(1)A designated officer may enquire into a tax return if subsection (2) has been complied with.                  

(2)Notice of the intention to make an enquiry must be given—                  

(a)to the person by whom or on whose behalf the return was made (“the relevant person”),                  

(b)before the end of the period of 3 years after the relevant date.                  

(3)The relevant date is—                  

(a)the filing date, if the return was made on or before that date, or                  

(b)the date on which the return was made, if the return was made after the filing date.                  

(4)A return that has been the subject of one notice under this section may not be the subject of another, except a notice given                        in consequence of an amendment of the return under section 83.                  

(5)A notice under this section is referred to as a “notice of enquiry”.                  

##### 86Scope of enquiryS

(1)An enquiry extends to anything contained in the tax return, or required to be contained in the return, that relates—                  

(a)to the question whether the relevant person is chargeable to the devolved tax to which the return relates, or                  

(b)to the amount of tax chargeable on the relevant person.                  

(2)Subsection (3) applies if the notice of enquiry is given as a result of the amendment of a return under section 83 after an                        enquiry into the return has been completed.                  

(3)The enquiry is limited to—                  

(a)matters to which the amendment relates, and                  

(b)matters affected by the amendment.                  

#### Amendment of return during enquiryS

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

(1)If, at a time when an enquiry is in progress into a tax return, a designated officer forms the opinion—                  

(a)that the amount stated in the self-assessment contained in the return as the amount of tax payable is insufficient, and                  

(b)that unless the assessment is immediately amended there is likely to be a loss of tax to the Crown,                  

the officer may by notice to the relevant person amend the assessment to make good the deficiency.

(2)If the enquiry is one that is limited by section 86(2) and (3) to matters arising from an amendment of the return, subsection                        (1) applies only so far as the deficiency is attributable to the amendment.                  

(3)Where a designated officer gives notice under subsection (1), section 83 does not apply.                  

(4)The taxpayer must pay any amount, or additional amount, of tax chargeable as a result of an amendment under this section immediately                        on receipt of notice of the amendment.                  

(5)For the purposes of this section and section 88 the period during which an enquiry is in progress is the whole of the period—                  

(a)beginning with the day on which the notice of enquiry is given, and                  

(b)ending with the day on which the enquiry is completed.                  

#### Referral during enquiryS

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

(1)At any time when an enquiry is in progress into a tax return any question arising in connection with the subject-matter of                        the return may be referred to the appropriate tribunal for determination.                  

(2)Notice of the referral must be given to the appropriate tribunal jointly by the relevant person and a designated officer.                  

(3)More than one notice of referral may be given under this section in relation to an enquiry.                  

##### 89Withdrawal of notice of referralS

A designated officer or the relevant person may withdraw a notice of referral under section 88.

##### 90Effect of referral on enquiryS

(1)While proceedings on a referral under section 88 are in progress in relation to an enquiry—                  

(a)no closure notice may be given in relation to the enquiry, and                  

(b)no application may be made for a direction to give a closure notice.                  

(2)Proceedings on a referral are “in progress” where—                  

(a)notice of referral has been given and has not been withdrawn, and                  

(b)the question referred has not been finally determined.                  

(3)A question referred has been “finally determined” when—                  

(a)it has been determined by the appropriate tribunal, and                  

(b)there is no further possibility of the determination being varied or set aside (disregarding any power to grant permission                        to appeal out of time).                  

##### 91Effect of determinationS

(1)A determination under section 88 is binding on the parties to the referral in the same way, and to the same extent, as a decision                        on a preliminary plea in an appeal.                  

(2)The designated officer conducting the enquiry must take the determination into account—                  

(a)in reaching conclusions on the enquiry, and                  

(b)in the formulation of any amendments of the tax return that may be required to give effect to those conclusions.                  

(3)The question determined may not be reopened on an appeal, except to the extent that it could be reopened if it had been determined                        as a preliminary plea in that appeal.                  

##### 92“Appropriate tribunal”S

(1)Where the question to be referred under section 88 is of the market value of any land, the appropriate tribunal is the Lands                        Tribunal for Scotland.                  

(2)In any other case a referral under section 88 is to be made to—                  

(a)the First-tier Tribunal,                  

(b)where determined by or under tribunal rules, the Upper Tribunal, or                  

(c)any other court or tribunal specified by the Scottish Ministers by order.                  

(3)References to the “appropriate tribunal” in sections 88 and 90 are to be read accordingly.                  

Commencement Information

I47S. 92 in force at 7.11.2014 for specified purposes by S.S.I. 2014/278, art. 2, **sch.**

#### Completion of enquiryS

##### 93Completion of enquiryS

(1)An enquiry under section 85 is completed—                  

(a)when a designated officer informs the relevant person by a notice (a “closure notice”) that the enquiry is complete and states                        the conclusions reached in the enquiry, or                  

(b)no closure notice having been given, 3 years after the relevant date.                  

(2)A closure notice must be given no later than 3 years after the relevant date.                  

(3)A closure notice must either—                  

(a)state that in the officer's opinion no amendment of the tax return is required, or                  

(b)make the amendments of the return required to give effect to the officer's conclusions.                  

(4)Where a closure notice is given which makes amendments of a return as mentioned in subsection (3)(b), section 83 does not                        apply.                  

(5)A closure notice takes effect when it is issued.                  

(6)The taxpayer must pay any amount, or additional amount, of tax chargeable as a result of an amendment made by a closure notice                        before the end of the period of 30 days beginning with the day on which the notice is given.                  

(7)In subsections (1) and (2) “relevant date” has the same meaning as in section 85.                  

##### 94Direction to complete enquiryS

(1)The relevant person may apply to the tribunal for a direction that a closure notice is to be given within a specified period.                  

(2)The tribunal hearing the application must give a direction unless satisfied that Revenue Scotland has reasonable grounds for                        not giving a closure notice within that period.                  

(3)In this paragraph “the tribunal” means—                  

(a)the First-tier Tribunal, or                  

(b)where determined by or under tribunal rules, the Upper Tribunal.                  

Commencement Information

I48S. 94 in force at 7.11.2014 for specified purposes by S.S.I. 2014/278, art. 2, **sch.**

### CHAPTER 5SRevenue Scotland determinations

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

(1)This section applies where—                  

(a)Revenue Scotland has reason to believe that a person (“P”) is chargeable to a devolved tax,                  

(b)P has not made a tax return in relation to that liability, and                  

(c)the relevant filing date has passed.                  

(2)“The relevant filing date” means the date by which Revenue Scotland believes a return was required to be made.                  

(3)Revenue Scotland may make a determination (a “Revenue Scotland determination”) to the best of its information and belief of                        the amount of tax to which P is chargeable.                  

(4)Notice of the determination must be given to P and must state the date on which it is issued.                  

(5)P must pay the tax chargeable as a result of the determination immediately on receipt of notice of the determination.                  

(6)No Revenue Scotland determination may be made more than 5 years after the relevant date.                  

(7)The relevant date is—                  

(a)the relevant filing date, or                  

(b)such other date as the Scottish Ministers may by order prescribe.                  

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

(1)A Revenue Scotland determination has effect for enforcement purposes as if it were a self-assessment made by P.                  

(2)In subsection (1) “for enforcement purposes” means for the purposes of Part 10.                  

(3)Nothing in this section affects any liability of a person to a penalty for failure to make a tax return.                  

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

(1)If, after a Revenue Scotland determination has been made, P makes a tax return with respect to the tax in question, the self-assessment                        included in that return supersedes the determination.                  

(2)Subsection (1) does not apply to a return made—                  

(a)more than 5 years after the power to make the determination first became exercisable, or                  

(b)more than 3 months after the date of the determination,                  

whichever is the later.

(3)Where—                  

(a)proceedings have been begun for the recovery of any tax charged by a Revenue Scotland determination, and                  

(b)before the proceedings are concluded the determination is superseded by a self-assessment,                  

the proceedings may be continued as if they were proceedings for the recovery of so much of the tax charged by the self-assessment                     as is due and payable and has not yet been paid.                  

### CHAPTER 6SRevenue Scotland assessments

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

##### 98Assessment where loss of taxS

(1)This section applies if a designated officer comes to the view honestly and reasonably that—                  

(a)an amount of devolved tax that ought to have been assessed as tax chargeable on a person has not been assessed,                  

(b)an assessment of the tax chargeable on a person is or has become insufficient, or                  

(c)relief has been claimed or given that is or has become excessive.                  

(2)The designated officer may make an assessment of the amount, or additional amount, that ought in the officer's opinion to                        be charged in order to make good to the Crown the loss of tax.                  

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

(1)If an amount of tax has been, but ought not to have been, repaid to a person that amount may be assessed and recovered as                        if it were unpaid tax.                  

(2)If the repayment was made with interest, the amount assessed and recovered may include the amount of interest that ought not                        to have been paid.                  

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

In this Act “Revenue Scotland assessment” means an assessment under section 98(2) or 99(1), as the case may be.                  

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

In sections 102 to 105 “taxpayer” means—                  

(a)in relation to an assessment under section 98, the person chargeable to the tax,                  

(b)in relation to an assessment under section 99, the person mentioned in section 99(1).                  

#### Conditions for making Revenue Scotland assessmentsS

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

(1)A Revenue Scotland assessment may be made only where the situation mentioned in section 98(1) or 99(1) was brought about carelessly                        or deliberately by—                  

(a)the taxpayer,                  

(b)a person acting on the taxpayer's behalf, or                  

(c)a person who was a partner of the taxpayer.                  

(2)But no Revenue Scotland assessment may be made if—                  

(a)the situation mentioned in section 98(1) or 99(1) is attributable to a mistake in the return as to the basis on which the                        tax liability ought to have been calculated, and                  

(b)the return was in fact made on the basis prevailing, or in accordance with the practice generally prevailing, at the time                        it was made.                  

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

(1)The general rule is that no Revenue Scotland assessment may be made more than 5 years after the relevant date.                  

(2)An assessment of a person in any case involving a loss of tax or a situation brought about deliberately by the taxpayer or                        a related person may be made up to 20 years after the relevant date.                  

(3)An assessment under section 99 (assessment to recover excessive repayment of tax) is not out of time if it is made within                        the period of 12 months beginning with the date on which the repayment in question was made.                  

(4)If the taxpayer has died—                  

(a)any assessment on the personal representatives must be made within 3 years after the death, and                  

(b)an assessment is not to be made by virtue of subsection (1) in respect of a relevant date more than 5 years before the death.                  

(5)Any objection to the making of an assessment on the ground that the time limit for making it has expired can only be made                        on a review or appeal against the assessment.                  

(6)In this section—                  
          -  “related person”, in relation to the taxpayer, means—                          (a)
a person acting on the taxpayer's behalf, or
(b)
a person who was the partner of the taxpayer,
 
          -  “relevant date” means—                          (a)
the filing date, or
(b)
the date on which the return was made, if the return was made after the filing date.
 

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

(1)This section applies for the purposes of sections 102 and 103.                  

(2)A loss of tax or a situation is brought about carelessly by a person if the person fails to take reasonable care to avoid                        bringing about that loss or situation.                  

(3)Subsection (4) applies where—                  

(a)information is provided to Revenue Scotland,                  

(b)the person who provided the information, or the person on whose behalf the information was provided, discovers some time later                        that the information was inaccurate, and                  

(c)that person fails to take reasonable steps to inform Revenue Scotland.                  

(4)Any loss of tax or situation brought about by the inaccuracy is to be treated as having been brought about carelessly by that                        person.                  

(5)References to a loss of tax or to a situation brought about deliberately by a person include a loss of tax or situation brought                        about as a result of a deliberate inaccuracy in a document given to Revenue Scotland by or on behalf of that person.                  

#### Notice of assessment and other procedureS

##### 105Assessment procedureS

(1)Notice of a Revenue Scotland assessment must be served on the taxpayer.                  

(2)The notice must state—                  

(a)the tax due,                  

(b)the date on which the notice is issued,                  

(c)the date by which—                  

(i)the amount, or additional amount, of tax chargeable as a result of the assessment (as mentioned in section 98(2)), or                  

(ii)the amount of tax or interest repaid that ought not to have been (as mentioned in section 99(1)),                  

must be paid, and

(d)the time within which any review or appeal against the assessment must be requested.                  

(3)The—                  

(a)amount, or additional amount, of tax chargeable as a result of the assessment (as mentioned in section 98(2)), or                  

(b)amount of tax or interest repaid that ought not to have been (as mentioned in section 99(1)),                  

must be paid before the end of the period of 30 days beginning with the date on which the assessment is issued.

(4)After notice of the assessment has been served on the taxpayer, the assessment may not be altered except in accordance with                        the express provisions of this Part or of Part 5.                  

(5)Where a designated officer has decided to make an assessment to tax, and has taken all other decisions needed for arriving                        at the amount of the assessment, the officer may entrust to some other designated officer the responsibility for completing                        the assessment procedure, whether by means involving the use of a computer or otherwise, including responsibility for serving                        notice of the assessment.                  

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

#### Double assessmentS

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

A person who believes that tax has been assessed on that person more than once in respect of the same matter may make a claim                     to Revenue Scotland for relief against any double charge.                  

#### Overpaid tax etc.S

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

(1)This section applies where—                  

(a)a person has paid an amount by way of tax but believes the tax was not chargeable, or                  

(b)a person has been assessed as chargeable to an amount of tax, or a determination has been made that a person is chargeable                        to an amount of tax, but the person believes the tax is not chargeable.                  

(2)The person may make a claim to Revenue Scotland for the amount to be repaid or discharged.                  

(3)Where this section applies, Revenue Scotland is not liable to give relief, except as provided in this Part or by or under                        any other provision of this Act.                  

(4)For the purposes of this section and sections 109 to 118, an amount paid by one person on behalf of another is treated as                        paid by the other person.                  

#### Order changing tax basis not approvedS

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

#### Defence of unjustified enrichmentS

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

It is a defence to a claim for relief made under section 107 or 108 that repayment or, as the case may be, discharge of the                     amount would unjustly enrich the claimant.                  

##### 110Unjustified enrichment: further provisionS

(1)This section applies where—                  

(a)there is an amount paid by way of tax which (apart from section 109) would fall to be repaid or discharged to any person (“the                        taxpayer”), and                  

(b)the whole or a part of the cost of the payment of that amount to Revenue Scotland has, for practical purposes, been borne                        by a person other than the taxpayer.                  

(2)Where, in a case to which this section applies, loss or damage has been or may be incurred by the taxpayer as a result of                        mistaken assumptions made in the taxpayer's case about the operation of any provisions relating to a tax, that loss or damage                        is to be disregarded, except to the extent of the quantified amount, in the making of any determination—                  

(a)of whether or to what extent the repayment or discharge of an amount to the taxpayer would enrich the taxpayer, or                  

(b)of whether or to what extent any enrichment of the taxpayer would be unjust.                  

(3)In subsection (2) “the quantified amount” means the amount (if any) which is shown by the taxpayer to constitute the amount that would appropriately compensate the                        taxpayer for loss or damage shown by the taxpayer to have resulted, for any business carried on by the taxpayer, from the                        making of the mistaken assumptions.                  

(4)The reference in subsection (2) to provisions relating to a tax is a reference to any provisions of—                  

(a)any enactment, subordinate legislation or EU legislation (whether or not still in force) which relates to that tax or to any matter connected with it, or                  

(b)any notice published by Revenue Scotland under or for the purposes of any such enactment or subordinate legislation.                  

##### 111Unjustified enrichment: reimbursement arrangementsS

(1)The Scottish Ministers may by regulations make provision for reimbursement arrangements made by any person to be disregarded                        for the purposes of section 109 except where the arrangements—                  

(a)contain such provision as may be required by the regulations, and                  

(b)are supported by such undertakings to comply with the provisions of the arrangements as may be required by the regulations                        to be given to Revenue Scotland.                  

(2)In this section “reimbursement arrangements” means any arrangements for the purposes of a claim under section 107 or 108 which—                  

(a)are made by any person for the purpose of securing that the person is not unjustly enriched by the repayment or discharge                        of any amount in pursuance of the claim, and                  

(b)provide for the reimbursement of persons who have for practical purposes borne the whole or any part of the cost of the original                        payment of that amount to Revenue Scotland.                  

(3)Without prejudice to the generality of subsection (1) above, the provision that may be required by regulations under this                        section to be contained in reimbursement arrangements includes—                  

(a)provision requiring a reimbursement for which the arrangements provide to be made within such period after the repayment to                        which it relates as may be specified in the regulations,                  

(b)provision for the repayment of amounts to Revenue Scotland where those amounts are not reimbursed in accordance with the arrangements,                  

(c)provision requiring interest paid by Revenue Scotland on any amount repaid by it to be treated in the same way as that amount                        for the purposes of any requirement under the arrangements to make reimbursement or to repay Revenue Scotland,                  

(d)provision requiring such records relating to the carrying out of the arrangements as may be described in the regulations to                        be kept and produced to Revenue Scotland, or to a designated officer.                  

(4)Regulations under this section may impose obligations on such persons as may be specified in the regulations—                  

(a)to make the repayments to Revenue Scotland that they are required to make in pursuance of any provisions contained in any                        reimbursement arrangements by virtue of subsection (3)(b) or (c),                  

(b)to comply with any requirements contained in any such arrangements by virtue of subsection (3)(d).                  

(5)Regulations under this section may make provision for the form and manner in which, and the times at which, undertakings are                        to be given to Revenue Scotland in accordance with the regulations and any such provision may allow for those matters to be                        determined by Revenue Scotland in accordance with the regulations.                  

Commencement Information

I49S. 111 in force at 7.11.2014 for specified purposes by S.S.I. 2014/278, art. 2, **sch.**

##### 112Reimbursement arrangements: penaltiesS

(1)Regulations under section 111 may make provision for penalties where a person breaches an obligation imposed by virtue of                        section 111(4).                  

(2)The regulations may in particular make provision including provision—                  

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

(b)about the amounts of penalties,                  

(c)for fixed penalties, daily penalties and penalties calculated by reference to the amount of repayments which the person would                        have been liable to make to Revenue Scotland if the obligation had been breached,                  

(d)about the procedure for issuing penalties,                  

(e)about appealing penalties,                  

(f)about enforcing penalties.                  

(3)But the regulations may not create criminal offences.                  

(4)Regulations made by virtue of this section may amend any enactment (including this Act).                  

#### Other defences to claimsS

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

(1)Revenue Scotland need not give effect to a claim under section 107 if or to the extent that the claim falls within a case                        described in this section.                  

(2)Case A is where the amount of tax paid, or liable to be paid, is excessive because of—                  

(a)a mistake in a claim, or                  

(b)a mistake consisting of making, or failing to make, a claim.                  

(3)Case B is where the claimant is or will be able to seek relief by taking other steps under this Part of this Act.                  

(4)Case C is where the claimant—                  

(a)could have sought relief by taking such steps within a period that has now expired, and                  

(b)knew or ought reasonably to have known, before the end of that period, that such relief was available.                  

(5)Case D is where the claim is made on grounds that—                  

(a)have been put to a court or tribunal in the course of an appeal by the claimant relating to the amount paid or liable to be                        paid, or                  

(b)have been put to Revenue Scotland in the course of a review or appeal by the claimant relating to that amount that is treated                        as having been determined by the tribunal by virtue of section 246 (settling matters in question by agreement).                  

(6)Case E is where the claimant knew, or ought reasonably to have known, of the grounds for the claim before the latest of the                        following—                  

(a)the date on which a relevant appeal in the course of which the ground could have been put forward was determined by a court                        or tribunal (or is treated as having been so determined),                  

(b)the date on which the claimant withdrew a relevant appeal to a court or tribunal,                  

(c)the end of the period in which the claimant was entitled to make a relevant appeal to a court or tribunal.                  

(7)In subsection (6) “relevant appeal” means an appeal by the claimant relating to the amount paid or liable to be paid.                  

(8)Case F is where the amount in question was paid or is liable to be paid—                  

(a)in consequence of proceedings enforcing the payment of that amount brought against the claimant by Revenue Scotland, or                  

(b)in accordance with an agreement between the claimant and Revenue Scotland settling such proceedings.                  

(9)Case G is where—                  

(a)the amount paid, or liable to be paid, is excessive by reason of a mistake in calculating the claimant's liability to tax,                        and                  

(b)liability was calculated in accordance with the practice generally prevailing at the time.                  

(10)Case G does not apply where the amount paid, or liable to be paid, is tax which has been charged contrary to EU law.                  

(11)For the purposes of subsection (10), an amount of tax is charged contrary to EU law if, in the circumstances in question,                        the charge to tax is contrary to—                  

(a)the provisions relating to the free movement of goods, persons, services and capital in Titles II and IV of Part 3 of the Treaty on the Functioning of the European Union, or                  

(b)the provisions of any subsequent treaty replacing the provisions mentioned in paragraph (a).                  

#### Procedure for making claimsS

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

Schedule 3 applies in relation to claims under sections 106 to 108.

Commencement Information

I50S. 114 in force at 7.11.2014 for specified purposes by S.S.I. 2014/278, art. 2, **sch.**

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

(1)A claim under section 106 or 107 must be made within the period of 5 years after the date by which the tax return, to which                        the payment by way of tax, or the assessment or determination relates, required to be made.                  

(2)A claim under section 107 may not be made by being included in a return.                  

##### 116The claimant: partnershipsS

(1)This section is about the application of sections 107 and 108 in a case where either—                  

(a)(in a case falling within section 107(1)(a) or 108(1)(a)) the person paid the amount in question in the capacity of a responsible                        partner or representative partner, or                  

(b)(in a case falling within section 107(1)(b) or 108(1)(b)) the assessment was made on, or the determination related to the                        liability of, the person in such a capacity.                  

(2)In such a case, only a relevant person who has been nominated to do so by all of the relevant persons may make a claim under                        section 107 or 108 in respect of the amount in question.                  

(3)The relevant persons are all the persons who would have been liable as responsible partners to pay the amount in question                        had the payment been due or (in a case falling within section 107(1)(b) or 108(1)(b)) had the assessment or determination                        been correctly made.                  

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

(1)This section applies where—                  

(a)a claim is made under section 107,                  

(b)the grounds for giving effect to the claim also provide grounds for a Revenue Scotland assessment on the claimant in respect                        of the tax, and                  

(c)such an assessment could be made but for a relevant restriction.                  

(2)In a case falling within section 116(1)(a) or (b), the reference to the claimant in subsection (1)(b) of this section includes                        any relevant person (as defined in section 116(3)).                  

(3)The following are relevant restrictions—                  

(a)the restrictions in section 102 (conditions for assessment where return has been delivered),                  

(b)the expiry of a time limit for making a Revenue Scotland assessment.                  

(4)Where this section applies—                  

(a)the relevant restrictions are to be disregarded,                  

(b)the Revenue Scotland assessment is not out of time if it is made before the final determination of the claim.                  

(5)A claim is not finally determined until it, or the amount to which it relates, can no longer be varied (whether on review,                        appeal or otherwise).                  

#### Contract settlementsS

##### 118Contract settlementsS

(1)In sections 107(1)(a) and 108(1)(a) the reference to an amount paid by a person by way of tax includes an amount paid by a                        person under a contract settlement in connection with tax believed to be due.                  

(2)Subsections (3) to (7) apply if the person who paid the amount under the contract settlement (“the payer”) and the person                        from whom the tax was due (“the taxpayer”) are not the same person.                  

(3)In relation to a claim under section 107 in respect of that amount—                  

(a)the references to the claimant in section 113(5), (6) and (8) (Cases D, E and F) have effect as if they included the taxpayer,                  

(b)the reference to the claimant in section 113(9) (Case G) has effect as if it were a reference to the taxpayer, and                  

(c)the reference to the claimant in section 117(1)(b) has effect as if it were a reference to the taxpayer.                  

(4)In relation to a claim under section 107 or 108 in respect of that amount, references to tax in schedule 3 (as it applies                        to a claim under section 107 or 108) include the amount paid under the contract settlement.                  

(5)Subsection (6) applies where the grounds for giving effect to a claim by the payer in respect of the amount also provide grounds                        for a Revenue Scotland assessment on the taxpayer in respect of the tax.                  

(6)Revenue Scotland may set any amount repayable to the payer as a result of the claim against any amount payable by the taxpayer                        as a result of the assessment.                  

(7)The obligations of Revenue Scotland and the taxpayer are discharged to the extent of any set-off under subsection (6).                  

(8)“Contract settlement” means an agreement made in connection with any person's liability to make a payment to Revenue Scotland by or under this                        Act or any other enactment.                  

## **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.                  

Commencement Information

I51S. 138 in force at 7.11.2014 for specified purposes by S.S.I. 2014/278, art. 2, **sch.**

#### 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.                  

Commencement Information

I52S. 142 in force at 7.11.2014 for specified purposes by S.S.I. 2014/278, art. 2, **sch.**

##### 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.                  

Commencement Information

I53S. 217 in force at 7.11.2014 for specified purposes by S.S.I. 2014/278, art. 2, **sch.**

### 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.                  

Commencement Information

I54S. 220 in force at 7.11.2014 for specified purposes by S.S.I. 2014/278, art. 2, **sch.**

## **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.                  

Commencement Information

I55S. 222 in force at 7.11.2014 by S.S.I. 2014/278, art. 2, **sch.**

#### 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

This Part makes provision about the review and appeal of certain decisions of Revenue Scotland including—

(a)which decisions are, and which are not, reviewable and appealable,                  

(b)the taxpayer's right to have decisions reviewed and the nature and conduct of those reviews,                  

(c)the option of mediation following a review that doesn't settle the matter in question,                  

(d)the taxpayer's right to appeal decisions to the tribunal, whether following review or otherwise, and                  

(e)settling tax disputes by agreement and other supplementary matters.                  

#### Appealable decisionsS

##### 233Appealable decisionsS

(1)The following decisions of Revenue Scotland are appealable decisions—                  

(a)a decision under section 66 to make adjustments to counteract a tax advantage,                  

(b)a decision in relation to the registration of any person in relation to any taxable activity,                  

(c)a decision which affects whether a person is chargeable to tax,                  

(d)a decision which affects the amount of tax to which a person is chargeable,                  

(e)a decision which affects the amount of tax a person is required to pay,                  

(f)a decision which affects the date by which any amount by way of tax, penalty or interest must be paid,                  

(g)a decision in relation to a penalty under the following provisions—                  

(i)section 76,                  

(ii)section 112,                  

(iii)section 151,                  

(iv)Part 8,                  

(v)section 231,                  

(vi)paragraph 5 of schedule 3,                  

(h)subject to subsection (2), a decision in relation to the giving of an information notice or in relation to the use of any                        of the other investigatory powers in Part 7,                  

(i)subject to subsection (3), a decision in relation to the giving of a notice under section 228.                  

(2)See section 152 for decisions in relation to the giving of information notices that are not appealable or are appealable only                        on certain grounds and in certain circumstances.                  

(3)See section 229 for the grounds on which decisions in relation to the giving of notices under section 228 are appealable.                  

(4)The following decisions of Revenue Scotland are not appealable decisions—                  

(a)the giving of a notice under section 68,                  

(b)the making of a Revenue Scotland determination,                  

(c)a decision to give a notice of enquiry under section 85 or paragraph 13 of schedule 3.                  

(5)The decisions mentioned in subsection (1) are appealable whether they are decisions under this Act or any other enactment.                  

(6)The Scottish Ministers may by order modify subsection (1) or (4) to—                  

(a)add a decision to either subsection,                  

(b)vary the description of a decision,                  

(c)remove a decision from either subsection.                  

### CHAPTER 2SReviews

#### Review of appealable decisionsS

##### 234Right to request reviewS

(1)A person aggrieved by an appealable decision (the “appellant”) may request Revenue Scotland to review the decision.                  

(2)An appellant may not request review if subsection (3), (4) or (5) applies.                  

(3)This subsection applies where—                  

(a)the decision which the appellant seeks to review is a decision of Revenue Scotland to amend a self-assessment under section                        87 while an enquiry is in progress, and                  

(b)the enquiry has not been completed.                  

(4)This subsection applies where—                  

(a)the appellant has given notice of appeal in relation to the same matter in question, or                  

(b)the tribunal has determined the matter in question under section 244.                  

(5)This subsection applies where the appellant has entered into a settlement agreement with Revenue Scotland in relation to the                        same matter in question and has not withdrawn from the agreement under section 246(4).                  

(6)This section does not prevent the matter in question from being dealt with in accordance with section 246(1) and (2) (settling                        matters in question by agreement).                  

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

##### 236Late notice of reviewS

(1)This section applies in a case where—                  

(a)notice of review may be given to Revenue Scotland under this Part, but                  

(b)no notice is given before the relevant time limit.                  

(2)Notice may be given after the relevant time limit if—                  

(a)Revenue Scotland agrees, or                  

(b)where Revenue Scotland does not agree, the tribunal gives permission.                  

(3)Revenue Scotland must agree to notice being given after the relevant time limit if the appellant has requested that Revenue                        Scotland does so and Revenue Scotland is satisfied—                  

(a)that there was reasonable excuse for not giving the notice before the relevant time limit, and                  

(b)that the request has been made without unreasonable delay.                  

(4)If a request of the kind referred to in subsection (3) is made, Revenue Scotland must notify the appellant whether or not                        Revenue Scotland agrees to the request.                  

(5)In this section “relevant time limit”, in relation to notice of review, means the time before which the notice is to be given (but for this section).                  

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

(1)If the appellant gives Revenue Scotland notice of review, Revenue Scotland must—                  

(a)notify the appellant of Revenue Scotland's view of the matter in question within the relevant period, and                  

(b)review the matter in question in accordance with section 238.                  

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

(a)the appellant has already given notice of review under section 235 in relation to the same matter in question, or                  

(b)Revenue Scotland has concluded a review of the matter in question.                  

(3)In this section “relevant period” means—                  

(a)the period of 30 days beginning with the day on which Revenue Scotland receives the notice of review, or                  

(b)such longer period as is reasonable.                  

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

(1)This section applies if Revenue Scotland is required by section 237 to review the matter in question.                  

(2)The nature and extent of the review are to be such as appear appropriate to Revenue Scotland in the circumstances.                  

(3)For the purpose of subsection (2), Revenue Scotland must, in particular, have regard to steps taken before the beginning of                        the review—                  

(a)by Revenue Scotland in deciding the matter in question, and                  

(b)by any person in seeking to resolve disagreement about the matter in question.                  

(4)The review must take account of any representations made by the appellant at a stage which gives Revenue Scotland a reasonable                        opportunity to consider them.                  

(5)The review may conclude that Revenue Scotland's view of the matter in question is to be—                  

(a)upheld,                  

(b)varied, or                  

(c)cancelled.                  

##### 239Notification of conclusions of reviewS

(1)Revenue Scotland must notify the appellant of the conclusions of the review and its reasoning within—                  

(a)the period of 45 days beginning with the relevant day, or                  

(b)such other period as may be agreed.                  

(2)In subsection (1) “relevant day” means the day when Revenue Scotland notified the appellant of Revenue Scotland's view of the matter in question.                  

(3)Where Revenue Scotland is required to undertake a review but does not give notice of the conclusions within the period specified                        in subsection (1), the review is treated as having concluded that Revenue Scotland's view of the matter in question (see section                        237(1)) is upheld.                  

(4)If subsection (3) applies, Revenue Scotland must notify the appellant of the conclusions which the review is treated as having                        reached.                  

##### 240Effect of conclusions of reviewS

(1)If Revenue Scotland gives notice of the conclusions of a review (see section 239)—                  

(a)the conclusions are to be treated as if they were contained in a settlement agreement (see section 246(2)), but                  

(b)section 246(4) (withdrawal from agreement) does not apply in relation to that notional agreement.                  

(2)Subsection (1) does not apply to the matter in question if, or to the extent that—                  

(a)the appellant and Revenue Scotland enter into mediation and conclude that mediation by entering into a settlement agreement,                        or                  

(b)the appellant gives notice of appeal under section 242.                  

### CHAPTER 3SAppeals

#### 241Right of appealS

(1)An appellant may appeal to the tribunal against an appealable decision.                  

(2)An appellant may not give notice of appeal under section 242 if subsection (3), (4) or (5) applies.                  

(3)This subsection applies where—                  

(a)the decision which the appellant seeks to appeal is a decision of Revenue Scotland to amend a self-assessment under section                        87 while an enquiry is in progress, and                  

(b)the enquiry has not been completed.                  

(4)This subsection applies where—                  

(a)the appellant has given notice of review in relation to the same matter in question, and                  

(b)the review has not been concluded or treated as concluded.                  

(5)This subsection applies where the appellant has entered into a settlement agreement with Revenue Scotland in relation to the                        same matter in question and has not withdrawn from the agreement under section 246(4).                  

(6)This section does not prevent the matter in question from being dealt with in accordance with section 246(1) and (2) (settling                        matters in question by agreement).                  

#### 242Notice of appealS

(1)Notice of appeal must be given—                  

(a)within 30 days of the specified date,                  

(b)to the tribunal.                  

(2)In subsection (1) “specified date” means—                  

(a)in a case to which section 241(3) applies—                  

(i)the date the appellant was given notice that the enquiry was completed, or                  

(ii)no such notice having been given, the date the enquiry is completed by virtue of section 93(1)(b),                  

(b)where the appellant does not request a review under section 234, the date on which the appellant was notified of the appealable                        decision,                  

(c)where the appellant requests such a review, the date on which the conclusions of review are notified to the appellant under                        section 239,                  

(d)where, following a review under section 237, the appellant and Revenue Scotland entered into mediation, the date either Revenue                        Scotland or the appellant gave notice of withdrawal from mediation,                  

(e)where the appellant and Revenue Scotland entered into a settlement agreement but the appellant withdrew from the agreement,                        the date of that withdrawal.                  

(3)The notice of appeal must specify the grounds of appeal.                  

#### 243Late notice of appealS

(1)This section applies in a case where—                  

(a)notice of appeal may be given to the tribunal under this Part, but                  

(b)no notice is given before the relevant time limit.                  

(2)Notice may be given after the relevant time limit if—                  

(a)Revenue Scotland agrees, or                  

(b)where Revenue Scotland does not agree, the tribunal gives permission.                  

(3)Revenue Scotland must agree to notice being given after the relevant time limit if the appellant has requested that Revenue                        Scotland does so and Revenue Scotland is satisfied—                  

(a)that there was reasonable excuse for not giving the notice before the relevant time limit, and                  

(b)that the request has been made without unreasonable delay.                  

(4)If a request of the kind referred to in subsection (3) is made, Revenue Scotland must notify the appellant whether or not                        Revenue Scotland agrees to the request.                  

(5)A decision of the tribunal under subsection (2)(b) is final.                  

(6)In this section “relevant time limit”, in relation to notice of appeal, means the time before which the notice is to be given (but for this section).                  

#### 244Disposal of appealS

(1)This section applies if notice of appeal is given under section 242.                  

(2)The tribunal is to determine the matter in question and may conclude that Revenue Scotland's view of the matter in question                        is to be—                  

(a)upheld,                  

(b)varied, or                  

(c)cancelled.                  

### CHAPTER 4SSupplementary

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

(1)Where there is a review or appeal under this Part, any tax charged or penalty or interest imposed remains due and payable                        as if there had been no review or appeal.                  

(2)The Scottish Ministers may by regulations make provision for the postponement of any such tax, penalty or interest pending                        reviews or appeals, including provision—                  

(a)for applications by appellants to Revenue Scotland for postponement of amounts of tax, penalty and interest,                  

(b)for the effect of any determination by Revenue Scotland on such applications,                  

(c)for agreements between appellants and Revenue Scotland as to postponement of amounts of tax, penalty and interest,                  

(d)for applications to the tribunal for such postponement,                  

(e)for appeals in relation to such determinations by Revenue Scotland and decisions by the tribunal on such applications.                  

(3)Regulations under subsection (2) may modify any enactment (including this Act).                  

(4)Subsection (1) is subject to sections 79(1) and 203(1) and to paragraph 8(1) of schedule 3.                  

Commencement Information

I57S. 245 in force at 7.11.2014 for specified purposes by S.S.I. 2014/278, art. 2, **sch.**

#### 246Settling matters in question by agreementS

(1)In relation to a review, mediation or an appeal under this Part, “settlement agreement” means an agreement between the taxpayer and Revenue Scotland that is—                  

(a)entered into—                  

(i)before the review is concluded,                  

(ii)as the conclusion of the mediation, or                  

(iii)before the appeal is determined, and                  

(b)to the effect that the decision reviewed, taken to mediation or appealed should be upheld without variation, varied in a particular                        manner or cancelled.                  

(2)Where a settlement agreement is entered into in relation to a review, mediation or an appeal, the consequences are to be the                        same (for all purposes) as if, at the time the agreement was entered into, the tribunal had determined an appeal in relation                        to the matter in question and had upheld the decision without variation, varied it in that manner or cancelled it, as the                        case may be.                  

(3)But a settlement agreement is not to be treated as a decision of the tribunal for the purposes of section 34 or 36.                  

(4)Subsection (2) does not apply if, within 30 days from the date when the settlement agreement was entered into, the appellant                        gives notice to Revenue Scotland that the appellant wishes to withdraw from the agreement.                  

(5)Where a settlement agreement is not in writing—                  

(a)subsection (2) does not apply unless the fact that an agreement was entered into, and the terms agreed, are confirmed by notice                        in writing given by Revenue Scotland to the appellant or by the appellant to Revenue Scotland, and                  

(b)the references in subsections (2) and (4) to the time when the agreement was entered into are to be read as references to                        the time when the notice of confirmation was given.                  

(6)References in this section to an agreement being entered into with an appellant, and to the giving of notice by or to the                        appellant, include references to an agreement being entered into, or notice being given by or to, a person acting on behalf                        of the appellant in relation to the review, mediation or appeal.                  

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

(1)This section applies where, in relation to land and buildings transaction tax, there are two or more buyers who are or will                        be jointly entitled to the interest acquired by the land transaction.                  

(2)In a case where some (but not all) of the buyers give notice of review under section 235—                  

(a)notification of the review must be given by Revenue Scotland to each of the other buyers whose identity is known to it,                  

(b)any of the other buyers may be a party to the review if they notify Revenue Scotland,                  

(c)the agreement of all the buyers is required if the review is to be settled by agreement,                  

(d)if the review is not settled, notice of Revenue Scotland's conclusions must be given to each of the other buyers whose identity                        is known to Revenue Scotland, and                  

(e)section 240 (effect of conclusions of review) applies in relation to all of the buyers.                  

(3)In a case where the buyers and Revenue Scotland agree to enter into mediation—                  

(a)notification of the agreement must be given by Revenue Scotland to each of the buyers whose identity is known to it,                  

(b)any of the buyers may be a party to the mediation if they notify Revenue Scotland, and                  

(c)the agreement of all the buyers is required if the mediation is to be settled by agreement.                  

(4)In the case of an appeal relating to the transaction—                  

(a)the appeal may be brought by any of the buyers,                  

(b)notice of the appeal must be given by the buyers bringing the appeal to each of the other buyers,                  

(c)the agreement of all the buyers is required if the appeal is to be settled by agreement,                  

(d)if the appeal is not settled, any of the buyers are entitled to be parties to the appeal, and                  

(e)the tribunal's decision on the appeal binds all of the buyers.                  

(5)This section has effect subject to—                  

(a)the provisions of schedule 17 to the LBTT(S) Act 2013 (relating to partnerships), and                  

(b)the provisions of schedule 18 to that Act (relating to trustees).                  

#### 248Application of this Part to trusteesS

(1)This section applies where, in relation to land and buildings transaction tax, the buyers in the land transaction are a trust.                  

(2)In a case where some (but not all) of the trustees give notice of review under section 235—                  

(a)notification of the review must be given by Revenue Scotland to each of the other relevant trustees whose identity is known                        to it,                  

(b)any of the other relevant trustees may be a party to the review if they notify Revenue Scotland,                  

(c)the agreement of all the relevant trustees is required if the review is to be settled by agreement,                  

(d)if the review is not settled, notice of Revenue Scotland's conclusions must be given to each of the relevant trustees whose                        identity is known to Revenue Scotland, and                  

(e)section 240 (effect of conclusions of review) applies in relation to all of the relevant trustees.                  

(3)In a case where the trust and Revenue Scotland agree to enter into mediation—                  

(a)notification of the agreement must be given by Revenue Scotland to each of the relevant trustees whose identity is known to                        it,                  

(b)any of the relevant trustees may be a party to the mediation if they notify Revenue Scotland, and                  

(c)the agreement of all the relevant trustees is required if the mediation is to be settled by agreement.                  

(4)In the case of an appeal relating to the transaction—                  

(a)the appeal may be brought by any of the relevant trustees,                  

(b)notice of the appeal must be given by the trustee or trustees bringing the appeal to each of the other relevant trustees,                  

(c)the agreement of all the relevant trustees is required if the appeal is to be settled by agreement,                  

(d)if the appeal is not settled, any of the relevant trustees are entitled to be parties to the appeal, and                  

(e)the tribunal's decision on the appeal binds all of the relevant trustees.                  

(5)In this section “relevant trustees” has the meaning given by paragraph 16 of schedule 18 to the LBTT(S) Act 2013.                  

(6)This section has effect subject to the provisions of schedule 18 to the LBTT(S) Act 2013 (relating to trustees).                  

#### 249References to the “tribunal”S

In this Part “the tribunal” means—                  

(a)the First-tier Tribunal,                  

(b)where determined by or under tribunal rules, the Upper Tribunal.                  

Commencement Information

I58S. 249 in force at 7.11.2014 for specified purposes by S.S.I. 2014/278, art. 2, **sch.**

#### 250InterpretationS

(1)In this Part “matter in question” means the matter to which a review, mediation or appeal relates.                  

(2)In this Part a reference to the appellant includes a person acting on behalf of the appellant except in relation to—                  

(a)notification of Revenue Scotland's view under section 237(1), and                  

(b)notification of the conclusions of a review under section 239.                  

(3)But if a notification falling within paragraph (a) or (b) of subsection (2) is given to the appellant, a copy of the notification                        may also be given to a person acting on behalf of the appellant.                  

## **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.                  

Commencement Information

I59S. 251 in force at 1.1.2015 by S.S.I. 2014/370, art. 2, **sch.**

### 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.

Commencement Information

I60S. 256 in force at 7.11.2014 for specified purposes by S.S.I. 2014/278, art. 2, **sch.**

I61S. 256 in force at 1.1.2015 for specified purposes by S.S.I. 2014/370, art. 2, **sch.**

### 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.

Commencement Information

I62Sch. 1 para. 1 in force at 1.1.2015 by S.S.I. 2014/370, art. 2, **sch.**

### 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.

Commencement Information

I63Sch. 1 para. 2 in force at 1.1.2015 by S.S.I. 2014/370, art. 2, **sch.**

### 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.

Commencement Information

I64Sch. 1 para. 3 in force at 1.1.2015 by S.S.I. 2014/370, art. 2, **sch.**

### 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.                  

Commencement Information

I65Sch. 1 para. 4 in force at 1.1.2015 by S.S.I. 2014/370, art. 2, **sch.**

### 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.

Commencement Information

I66Sch. 1 para. 5 in force at 1.1.2015 by S.S.I. 2014/370, art. 2, **sch.**

### 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.

Commencement Information

I67Sch. 1 para. 6 in force at 1.1.2015 by S.S.I. 2014/370, art. 2, **sch.**

### 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.

Commencement Information

I68Sch. 1 para. 7 in force at 1.1.2015 by S.S.I. 2014/370, art. 2, **sch.**

### 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.

Commencement Information

I69Sch. 1 para. 8 in force at 1.1.2015 by S.S.I. 2014/370, art. 2, **sch.**

### 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.

Commencement Information

I70Sch. 1 para. 9 in force at 1.1.2015 by S.S.I. 2014/370, art. 2, **sch.**

## SCHEDULE 2SThe Scottish Tax Tribunals

 (introduced by section 26(4)) 

### **PART 1**SAppointment of members

#### President of the Tax Tribunals: eligibility for appointmentS

1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .S

#### First-tier Tribunal: ordinary membersS

2(1)The Scottish Ministers must appoint persons as ordinary members of the First-tier Tribunal.S

(2)Before appointing a person as an ordinary member, the Scottish Ministers must consult the Lord President.

(3)A person is eligible for appointment only if the person meets the criteria as to qualifications, experience and training that                        the Scottish Ministers prescribe by regulations.

Commencement Information

I71Sch. 2 para. 2(3) in force at 7.11.2014 for specified purposes by S.S.I. 2014/278, art. 2, **sch.**

#### First-tier Tribunal: legal membersS

3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .S

4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .S

#### Upper Tribunal: legal membersS

5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .S

6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .S

#### Disqualification from officeS

7S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

#### Eligibility under regulationsS

8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .S

9(1)The Scottish Ministers may by regulations make provision—S

(a)as regards the calculation of the 5-year period mentioned in paragraph 4(1) or 8(3) or (4)(a) (for example, by reference to                        recent or continuous time),

(b)as regards the calculation of the 10-year period mentioned in paragraph 1(2), 6(1) or 8(5) or (6)(a) (for example, by reference                        to recent or continuous time),

(c)to which paragraph 8(4)(a) or 8(6)(a) is subject (for example, by reference to debarment from practice),

(d)for the purpose of paragraph 8(8), about—

(i)the criteria for suitability (for example, by reference to equivalence to past or present practice as a solicitor),

(ii)the nature of experience required (for example, by reference to engagement for a particular period of time (within the United                        Kingdom or elsewhere)).

(2)The Scottish Ministers may by regulations modify the list in paragraph 8(7).

Commencement Information

I72Sch. 2 para. 9 in force at 7.11.2014 for specified purposes by S.S.I. 2014/278, art. 2, **sch.**

### **PART 2**SConditions of membership etc.

#### Application of this PartS

10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .S

#### Initial period of officeS

11S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

#### ReappointmentS

12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .S

13S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

14S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

#### Appointment to position of PresidentS

15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .S

#### Termination of appointmentS

16S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

#### Pensions etc.S

17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .S

#### OathsS

18. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .S

#### Other conditionsS

19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .S

### **PART 3**SConduct and discipline

#### Application of this PartS

20. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .S

#### Conduct RulesS

21S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

22(1)The Scottish Ministers may make rules for the purposes of or in connection with—S

(a)the investigation and determination of any matter concerning the conduct of members of the Tax Tribunals,

(b)the review of any such determination.

(2)Rules under sub-paragraph (1) may include provision about (in particular)—

(a)the circumstances in which an investigation must or may be undertaken,

(b)the making of a complaint by any person,

(c)the steps that are to be taken by a person making a complaint before it is to be investigated,

(d)the carrying out of an investigation (including any steps to be taken by the member whom it concerns or by any other person),

(e)the time limits for taking steps and procedures for extending such time limits,

(f)the person by whom an investigation (or part of an investigation) is to be carried out,

(g)the matters to be determined by the person carrying out an investigation (or part of an investigation), the President of the                        Tax Tribunals or any other person,

(h)the making of recommendations by the person carrying out an investigation (or part of one),

(i)the obtaining of information relating to a complaint,

(j)the keeping of a record of an investigation,

(k)the confidentiality of communications or proceedings,

(l)the publication of information or its supply to any person.

Commencement Information

I73Sch. 2 para. 22 in force at 7.11.2014 for specified purposes by S.S.I. 2014/278, art. 2, **sch.**

23SRules under paragraph 22(1)—

(a)may make different provision for different purposes,

(b)are to be published in such manner as the Scottish Ministers may determine.

Commencement Information

I74Sch. 2 para. 23 in force at 1.1.2015 by S.S.I. 2014/370, art. 2, **sch.**

#### Reprimand etc.S

24. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .S

25S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

#### Suspension of membershipS

26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .S

27S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

#### Judicial Complaints ReviewerS

28. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .S

29. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .S

### **PART 4**SFitness and removal

#### Application of this PartS

30. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .S

#### Constitution and procedureS

31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .S

32(1)The Scottish Ministers may make rules as to the procedure to be followed in proceedings at a fitness assessment tribunal.S

(2)Rules under sub-paragraph (1) are to be published in such manner as the Scottish Ministers may determine.

Commencement Information

I75Sch. 2 para. 32 in force at 7.11.2014 for specified purposes by S.S.I. 2014/278, art. 2, **sch.**

#### Composition and remunerationS

33. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .S

34. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .S

#### Proceedings before fitness assessment tribunalS

35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .S

36. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .S

#### Suspension during investigationS

37. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .S

38. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .S

39S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

#### Report and removalS

40. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .S

41. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .S

#### Application of this Part to the President of the Tax TribunalsS

42. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .S

#### InterpretationS

43S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

## 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.

Commencement Information

I76Sch. 3 para. 3 in force at 7.11.2014 for specified purposes by S.S.I. 2014/278, art. 2, **sch.**

### 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.

Commencement Information

I77Sch. 3 para. 15 in force at 7.11.2014 for specified purposes by S.S.I. 2014/278, art. 2, **sch.**

### 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),”.                  

Commencement Information

I78Sch. 4 para. 2 in force at 1.1.2015 by S.S.I. 2014/370, art. 2, **sch.**

### 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) ”.

Commencement Information

I79Sch. 4 para. 3 in force at 1.1.2015 by S.S.I. 2014/370, art. 2, **sch.**

### 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 ”.

Commencement Information

I80Sch. 4 para. 4 in force at 1.1.2015 by S.S.I. 2014/370, art. 2, **sch.**

### 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 ”.

Commencement Information

I81Sch. 4 para. 5 in force at 1.1.2015 by S.S.I. 2014/370, art. 2, **sch.**

### 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 ”.

Commencement Information

I82Sch. 4 para. 6 in force at 1.1.2015 by S.S.I. 2014/370, art. 2, **sch.**

### 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 ”.

Commencement Information

I83Sch. 4 para. 7 in force at 1.1.2015 by S.S.I. 2014/370, art. 2, **sch.**

### 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 ”.

Commencement Information

I84Sch. 4 para. 8 in force at 1.1.2015 by S.S.I. 2014/370, art. 2, **sch.**

### 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

I85Sch. 4 para. 9 not in force at Royal Assent; Sch. 4 para. 9(12) in force at 25.9.2014, see s. 260(1)

I86Sch. 4 para. 9(1) (6) (8) (9) (15) (16)(a) (16)(c) (18) (19) (22)(a)(i) in force at 7.11.2014 by S.S.I. 2014/278, art. 2, **sch.**

I87Sch. 4 para. 9(13) (17) (21)(b) (21)(c) in force at 1.1.2015 by S.S.I. 2014/370, art. 2, **sch.**

### 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

I88Sch. 4 para. 10 not in force at Royal Assent; Sch. 4 para. 10(14) in force at 25.9.2014, see s. 260(1)

I89Sch. 4 para. 10(1)-(8) (11) (12) (17) (18)(a) in force at 7.11.2014 by S.S.I. 2014/278, art. 2, **sch.**

I90Sch. 4 para. 10(15) (19) in force at 1.1.2015 by S.S.I. 2014/370, art. 2, **sch.**

### 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”.

Commencement Information

I91Sch. 4 para. 12 in force at 1.1.2015 by S.S.I. 2014/370, art. 2, **sch.**

## SCHEDULE 5SIndex of defined expressions

 (introduced by section 253)