PART 8Penalties
CHAPTER 3Penalties relating to inaccuracies
Penalties for inaccuracies in taxpayer documents
182Penalty for inaccuracy in taxpayer document
1
A penalty is payable by a person (“P”) where—
a
P gives Revenue Scotland a document of a kind mentioned in the table below, and
b
conditions A and B below are met.
2
Condition A is that the document contains an inaccuracy which amounts to, or leads to—
a
an understatement of a liability to tax,
b
a false or inflated statement of a loss, exemption or relief, or
c
a false or inflated claim for relief or to repayment of tax.
3
Condition B is that the inaccuracy was—
a
deliberate on P’s part (“a deliberate inaccuracy”), or
b
careless on P’s part (“a careless inaccuracy”).
4
An inaccuracy is careless if it is due to a failure by P to take reasonable care.
5
An inaccuracy in a document given by P to Revenue Scotland, which was neither deliberate nor careless on P’s part when the document was given, is to be treated as careless if P—
a
discovered the inaccuracy at some later time, and
b
did not take reasonable steps to inform Revenue Scotland.
6
Where a document contains more than one inaccuracy, a penalty is payable for each inaccuracy.
Tax | Document | |
|---|---|---|
1. | Land and buildings transaction tax |
|
2. | Scottish landfill tax |
|
7
Section 183 applies in the case of a document falling within item 1 or 2 of the table.
183Amount of penalty for inaccuracy in taxpayer document
1
This section sets out the penalty payable under section 182.
2
For a deliberate inaccuracy, the penalty is 100% of the potential lost revenue.
3
For a careless inaccuracy, the penalty is 30% of the potential lost revenue.
4
In this section and sections 185 and 186 “potential lost revenue” has the meaning given in sections 187 to 190.
184Suspension of penalty for careless inaccuracy under section 182
1
Revenue Scotland may suspend all or part of a penalty for a careless inaccuracy under section 182 by notice to P.
2
A notice must specify—
a
what part of the penalty is to be suspended,
b
a period of suspension not exceeding 2 years, and
c
conditions of suspension to be complied with by P.
3
Revenue Scotland may suspend all or part of a penalty only if compliance with a condition of suspension would help P to avoid becoming liable to further penalties under section 182 for careless inaccuracy.
4
A condition of suspension may specify—
a
action to be taken,
b
a period within which it may be taken.
5
On the expiry of the period of suspension—
a
if P satisfies Revenue Scotland that the conditions of suspension have been complied with, the suspended penalty or part is cancelled, and
b
otherwise, the suspended penalty or part becomes payable.
6
If, during the period of suspension of all or part of a penalty under section 182, P becomes liable for another penalty under that section, the suspended penalty or part becomes payable.