PART 8Penalties
CHAPTER 2Penalties for failure to make returns or pay tax
Penalties under Chapter 2: general
I1176Suspension of penalty under sections 168 to 173 during currency of agreement for deferred payment
1
This section applies if—
a
P fails to pay an amount of tax when it becomes due and payable,
b
P makes a request to Revenue Scotland that payment of the amount of tax be deferred, and
c
Revenue Scotland agrees that payment of that amount may be deferred for a period (“the deferral period”).
2
If P would (ignoring this subsection) become liable, between the date on which P makes the request and the end of the deferral period, to a penalty under sections 168 to 173 for failing to pay that amount, P is not liable to that penalty.
3
But if—
a
P breaks the agreement, and
b
Revenue Scotland serves on P a notice specifying any penalty to which P would become liable (ignoring subsection (2)),
P becomes liable to that penalty at the date of the notice.
4
P breaks an agreement if—
a
P fails to pay the amount of tax in question when the deferral period ends, or
b
the deferral is subject to P complying with a condition (including a condition that part of the amount be paid during the deferral period) and P fails to comply with it.
5
If the agreement mentioned in subsection (1)(c) is varied at any time by a further agreement between P and Revenue Scotland, this section applies from that time to the agreement as varied.