Revenue Scotland and Tax Powers Act 2014 section 166

Scottish landfill tax: 6 month penalty for failure to make return

Section 166 sets out the additional penalty that applies when a person fails to submit a Scottish landfill tax return for more than six months after the penalty date.

• This penalty applies only where the failure to file a return continues beyond six months from the penalty date
• The penalty is calculated as the greater of 5% of the tax liability that should have been shown on the return, or £300
• This is an escalation penalty, designed to encourage compliance where an initial penalty has not prompted the taxpayer to act
• The £300 minimum ensures a meaningful penalty applies even where the tax liability is low or nil