Revenue Scotland and Tax Powers Act 2014 section 187

Potential lost revenue: normal rule

Section 187 defines how "potential lost revenue" is calculated under the normal rule, which is used to determine the size of penalties for inaccuracies or failures to notify an under-assessment.

• Potential lost revenue is the additional tax that becomes due and payable once an inaccuracy or under-assessment is corrected.
• Inaccuracies include errors in documents, supplying false information, or withholding information from Revenue Scotland.
• The calculation also captures any tax that was erroneously repaid to the taxpayer by Revenue Scotland as a result of the inaccuracy.
• It further includes any amount that Revenue Scotland would have repaid to the taxpayer had the inaccuracy or incorrect assessment not been identified and corrected.