Revenue Scotland and Tax Powers Act 2014 section 204

Increased daily default penalty

Section 204 allows Revenue Scotland to apply to the tribunal for a higher daily penalty where a person continues to fail to comply with a notice requiring information about unidentified persons, after an initial daily penalty has already been imposed.

• Where a daily default penalty has been assessed for failing to comply with a notice to provide information about unidentified persons, and the failure continues for more than 30 days after notification of that assessment, Revenue Scotland may apply to the tribunal for an increased daily penalty — provided the person has been warned this could happen.
• If the tribunal agrees to impose an increased daily penalty, the person ceases to be liable to the original daily default penalty and becomes liable instead to the higher penalty set by the tribunal, for each applicable day the failure continues.
• The tribunal may set the increased daily penalty at up to £1,000 per day, taking into account the likely cost to the person of complying, any benefits to the person of not complying, and any benefits to others arising from the non-compliance.
• Revenue Scotland must notify the person of the increased penalty and specify the day from which it applies; that day and each subsequent day of continued failure count as applicable days attracting the higher penalty.