Revenue Scotland and Tax Powers Act 2014 section 68

Notice to taxpayer of proposed counteraction of tax advantage

Section 68 sets out the formal notice procedure that a designated officer must follow before counteracting a tax advantage that has arisen from an artificial tax avoidance arrangement.

• A designated officer who believes a taxpayer has gained a tax advantage from an artificial avoidance arrangement must issue a formal notice before taking counteraction
• The notice must identify the arrangement and advantage, explain why it is considered artificial, describe the proposed counteraction, and inform the taxpayer of their right to respond
• The taxpayer has 45 days from the date of the notice to submit representations to the designated officer, with the possibility of requesting an extension
• The designated officer is required to consider any representations the taxpayer makes before proceeding