Revenue Scotland and Tax Powers Act 2014 section 185

Penalty for inaccuracy in taxpayer document attributable to another person

Section 185 imposes a penalty on a person who deliberately causes an inaccuracy in someone else's tax document submitted to Revenue Scotland, either by supplying false information or by withholding information.

• A penalty applies where a person deliberately supplies false information to a taxpayer, or deliberately withholds information from them, intending this to cause an inaccuracy in a document the taxpayer submits to Revenue Scotland.
• A "relevant inaccuracy" is one that understates a tax liability, overstates a loss, exemption or relief, or results in a false or inflated claim for relief or tax repayment.
• The person who caused the inaccuracy can be penalised regardless of whether the taxpayer who submitted the document is also penalised for the same inaccuracy.
• The penalty is 100% of the potential lost revenue resulting from the inaccuracy.