Revenue Scotland and Tax Powers Act 2014 section 186

Penalty for failure to notify under-assessment

Section 186 sets out the penalty that applies when a person fails to notify Revenue Scotland that an assessment issued to them understates their tax liability.

• If Revenue Scotland issues an assessment that understates a person's devolved tax liability, the person must notify Revenue Scotland within 30 days of the assessment date
• Revenue Scotland will consider whether the person knew or should have known about the under-assessment, and what steps would have been reasonable to take
• The penalty for failing to take reasonable steps to notify the under-assessment is 30% of the potential lost revenue
• The rules apply equally to Revenue Scotland determinations as well as assessments