Revenue Scotland and Tax Powers Act 2014 section 190

Potential lost revenue: delayed tax

Section 190 explains how to calculate the potential lost revenue when an inaccuracy has caused tax to be declared later than it should have been, rather than resulting in tax being underpaid outright.

• Where an inaccuracy causes tax to be declared late (rather than lost entirely), the delayed amount is referred to as "the delayed tax"
• The potential lost revenue is calculated at 5% of the delayed tax for each full year of delay
• For any period of delay shorter than a full year, the potential lost revenue is calculated on a pro-rata basis equivalent to 5% per year
• This provision does not apply where the inaccuracy relates to losses, as those cases are dealt with separately

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