Revenue Scotland and Tax Powers Act 2014 section 191

Special reduction in penalty under this Chapter

Section 191 gives Revenue Scotland a discretionary power to reduce penalties for failures to make returns on time where special circumstances exist, and sets out what does and does not count as special circumstances.

• Revenue Scotland may reduce a penalty if special circumstances make it right to do so, but a taxpayer's inability to pay or the offsetting of one taxpayer's underpayment against another's overpayment do not count as special circumstances.
• A "reduction" in penalty is broadly defined and can include completely cancelling the penalty, suspending it, or reaching a compromise agreement in penalty proceedings.
• Any reference to a penalty in this section also covers any interest that has accrued on that penalty, so Revenue Scotland's discretion extends to the interest element as well.
• Revenue Scotland retains the power to apply a special reduction even after a tribunal or court has already made a decision about the penalty in question.