Revenue Scotland and Tax Powers Act 2014 section 213

Special reduction in penalty under section 209

Section 213 gives Revenue Scotland the discretion to reduce penalties for failure to register for tax where special circumstances exist.

• Revenue Scotland may reduce a registration penalty where special circumstances justify doing so
• A taxpayer's inability to pay, or the offsetting of one taxpayer's underpayment against another's overpayment, do not count as special circumstances
• A reduction can take various forms, including full cancellation of the penalty, suspension, or an agreed compromise in legal proceedings
• This power extends to any interest on the penalty and can be exercised even after a tribunal or court has already made a decision about the penalty

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