Revenue Scotland and Tax Powers Act 2014 section 192

Reduction in penalty under this Chapter for disclosure

Section 192 explains how penalties for inaccuracies and failures to disclose may be reduced by Revenue Scotland where a person voluntarily discloses the problem and cooperates in putting it right.

• Revenue Scotland has discretion to reduce penalties when a person makes a qualifying disclosure about an inaccuracy, false or withheld information, or a failure to report an under-assessment.
• A qualifying disclosure requires three steps: telling Revenue Scotland about the issue, helping to quantify the error, and providing access to records so it can be fully corrected.
• The size of any reduction may depend on whether the disclosure was unprompted (made before the person had reason to believe Revenue Scotland had discovered or was about to discover the problem) or prompted (made after that point).
• The quality of the disclosure — assessed by reference to its timing, nature and extent — is also taken into account in determining any reduction.