What is the role of the Scottish Tax Tribunals under Schedule 2, paragraph 34 of the Revenue Scotland and Tax Powers Act 2014?

Paragraph 34 establishes the Scottish Tax Tribunals as the independent judicial forum for hearing appeals against Revenue Scotland penalty decisions. They provide taxpayers with an impartial review when challenging penalties imposed for failures such as late filing or submitting inaccurate returns under devolved Scottish tax legislation.

How do the Scottish Tax Tribunals relate to the Tribunals (Scotland) Act 2014?

The Scottish Tax Tribunals sit within the broader framework established by the Tribunals (Scotland) Act 2014, which reorganised tribunal structures in Scotland. Ancillary regulations made in 2017 ensured the smooth transition of tax tribunal functions into this unified Scottish Tribunals system, governing their procedures and oversight.

Can a taxpayer appeal a Revenue Scotland penalty to the Scottish Tax Tribunals?

Yes. If a taxpayer receives a penalty notice from Revenue Scotland and believes it is unjustified — for example, because they had a reasonable excuse or the amount was incorrectly calculated — they may appeal to the Scottish Tax Tribunals. The tribunal independently assesses the case and makes a binding determination.

What happens during a Scottish Tax Tribunal hearing on a penalty appeal?

The tribunal considers the facts of the case and arguments presented by both the taxpayer and Revenue Scotland. It then makes a binding determination on whether the penalty should be upheld, reduced, or cancelled. This independent oversight process is designed to be accessible and to ensure a fair hearing for all parties.

Revenue Scotland and Tax Powers Act 2014 Schedule 2 paragraph 34

The Scottish Tax Tribunals

Schedule 2, paragraph 34 establishes the role of the Scottish Tax Tribunals in hearing and determining appeals against Revenue Scotland decisions under the penalty regime.

Appeals against Revenue Scotland penalty decisions are heard by the Scottish Tax Tribunals, which form part of the wider Scottish Tribunals structure.
The tribunal system provides an independent forum for taxpayers to challenge penalty assessments and related decisions.
The Scottish Tax Tribunals replaced earlier tribunal arrangements following the Tribunals (Scotland) Act 2014 reforms, which were implemented through ancillary regulations in 2017.
The tribunal process ensures that taxpayers have access to a fair and impartial review of penalty decisions made by Revenue Scotland.

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