Revenue Scotland and Tax Powers Act 2014 section 206

Tax-related penalty

Section 206 provides for an additional penalty, imposed by the Upper Tribunal, where a person's continued failure to comply with an information notice or continued obstruction of an investigation results in a significant underpayment of tax.

• Where a person has already been penalised for non-compliance or obstruction but continues that behaviour, and a Revenue Scotland officer believes this has led to significantly less tax being paid, an application can be made to the Upper Tribunal for an additional penalty.
• The application must be made within 12 months of the relevant date, which is generally the date the original penalty arose, though in cases where the information notice is appealable, the deadline runs from the latest of the original penalty date, the end of the appeal window, or the date any appeal is resolved.
• The Upper Tribunal decides both whether an additional penalty is appropriate and the amount, taking into account the tax that has not been paid or is unlikely to be paid as a result of the person's behaviour.
• This additional penalty is on top of any penalties already imposed for the original non-compliance or obstruction, and Revenue Scotland must notify the person once the liability arises.