Revenue Scotland and Tax Powers Act 2014 section 125

Approval of taxpayer notices and third party notices

Section 125 sets out the safeguards and approval requirements that must be met before Revenue Scotland can issue information notices to taxpayers or to third parties such as banks, employers, or advisers.

• A third party notice cannot be issued unless the taxpayer agrees or the tax tribunal gives its approval.
• Revenue Scotland can seek tribunal approval for any taxpayer notice or third party notice, which strengthens the notice's enforceability.
• Before approving a notice, the tribunal must generally be satisfied that the notice is justified, the recipient has been told what is required and given a chance to object, and — for third party notices — the taxpayer has been told why the information is needed.
• These safeguards can be set aside where the tribunal considers that following them might prejudice the assessment or collection of tax, and the tribunal may also allow the taxpayer's identity to be withheld from a third party notice in such circumstances.