Revenue Scotland and Tax Powers Act 2014 section 102

Conditions for making Revenue Scotland assessments

Section 102 sets out the conditions that must be met before Revenue Scotland can issue an assessment for lost tax or an excessive repayment, and identifies circumstances where such an assessment cannot be made.

• Revenue Scotland can only issue an assessment where a loss of tax or excessive repayment was caused carelessly or deliberately by the taxpayer, their agent, or a partner of the taxpayer.
• The careless or deliberate behaviour can be attributed to anyone acting on the taxpayer's behalf, not just the taxpayer personally.
• No assessment can be made where the issue arose from a genuine mistake about how the tax liability should have been calculated, provided the return followed the prevailing basis or accepted practice at the time.
• This protection effectively prevents Revenue Scotland from penalising taxpayers who followed the commonly understood rules or practice when submitting their return, even if that understanding later turns out to be incorrect.