Revenue Scotland and Tax Powers Act 2014 section 175

Reduction in penalty under sections 159 to 167 for disclosure

Section 175 allows Revenue Scotland to reduce penalties for failure to make tax returns where the taxpayer voluntarily discloses information that had been withheld.

• Revenue Scotland has discretion to reduce penalties imposed under sections 159 to 167 when a taxpayer discloses information previously withheld by failing to make a return
• Disclosure requires the taxpayer to tell Revenue Scotland about the withheld information, help quantify any unpaid tax, and provide access to records for verification
• Penalty reductions may reflect whether the disclosure was unprompted (made before Revenue Scotland discovered or was about to discover the issue) or prompted (made after the taxpayer had reason to believe discovery was imminent)
• The quality of the disclosure — including its timing, nature and extent — is also taken into account when determining any reduction