What power does section 142 of the Revenue Scotland and Tax Powers Act 2014 give to designated officers?

Section 142 allows designated Revenue Scotland officers to enter and inspect the business premises of involved third parties. They may inspect the premises, business assets, and relevant documents found there to check any person's or class of persons' tax position regarding a relevant devolved tax, provided they have reason to believe the inspection is reasonably required.

Does a Revenue Scotland officer need to know the identity of the taxpayer before inspecting third-party premises under section 142?

No, the officer does not need to know the specific identity of the taxpayer whose affairs are being checked. This allows Revenue Scotland to carry out broader compliance checks, for example inspecting an intermediary's records to verify the tax positions of multiple clients as a class rather than targeting one individual.

What limitations apply to the inspection power under section 142 of RSTPA 2014?

The power cannot be used to enter or inspect any part of the premises used solely as a dwelling. If a building contains both business and residential areas, the officer may only inspect the business portions. The residential-only parts are completely off-limits, providing an important safeguard for individuals' private living spaces.

Who defines which third parties, documents, and devolved taxes fall within the scope of section 142?

The Scottish Ministers define by order which third parties qualify as involved third parties, which documents are considered relevant, and which devolved taxes the inspection power applies to. This secondary legislation framework allows the scope of the power to be adjusted without requiring a new Act of the Scottish Parliament.

Revenue Scotland and Tax Powers Act 2014 section 142

Power to inspect business premises of involved third parties

Section 142 gives Revenue Scotland officers the power to enter and inspect the business premises of certain third parties to check the tax position of taxpayers in relation to devolved taxes.

A designated officer may enter the business premises of an "involved third party" and inspect the premises, business assets, and relevant documents found there.
The inspection must be reasonably required for checking any person's or group of persons' position regarding a relevant devolved tax — the officer must have reason to believe this before exercising the power.
The Scottish Ministers define by order which third parties, which documents, and which devolved taxes fall within the scope of this power.
The power can be used even if the identity of the person whose tax position is being checked is not known, but it cannot be used to enter or inspect any part of the premises used solely as a dwelling.

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