Revenue Scotland and Tax Powers Act 2014 section 176

Suspension of penalty during currency of agreement for deferred payment

Section 176 explains how late payment penalties are suspended when a taxpayer has an agreed payment deferral arrangement with Revenue Scotland, and what happens if that arrangement breaks down.

• Where a taxpayer cannot pay tax on time and Revenue Scotland agrees to defer payment, any late payment penalties that would otherwise arise during the deferral period are suspended
• The suspension covers the period from the date the deferral request is made until the end of the agreed deferral period
• If the taxpayer breaks the deferral agreement — either by failing to pay at the end of the deferral period or by not meeting any conditions attached to it — Revenue Scotland can reinstate the penalties by issuing a notice
• If the original deferral agreement is subsequently varied by mutual consent, the rules apply afresh to the agreement as varied from the date of the variation

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