PART 8Penalties

CHAPTER 3Penalties relating to inaccuracies

Penalty for failure to notify under-assessment

I1186Penalty for failure to notify under-assessment

1

A penalty is payable by a person (“P”) where—

a

a Revenue Scotland assessment understates P's liability to a devolved tax, and

b

P has failed to take reasonable steps to notify Revenue Scotland, within the period of 30 days beginning with the date of the assessment, that it is an under-assessment.

2

In deciding what steps (if any) were reasonable, Revenue Scotland must consider—

a

whether P knew, or should have known, about the under-assessment, and

b

what steps it would have been reasonable to take to notify Revenue Scotland.

3

The penalty payable under this section is 30% of the potential lost revenue.

4

In this section—

a

Revenue Scotland assessment” includes “Revenue Scotland determination”, and

b

accordingly, references to an under-assessment include an under-determination.