Revenue Scotland and Tax Powers Act 2014 section 71

Assumption of tax advantage

Section 71 allows Revenue Scotland to take action against a potential tax advantage even before it has been confirmed that the advantage actually exists.

• A designated officer does not need to prove that a tax advantage has definitely arisen before issuing a notice to the taxpayer.
• It is sufficient for the officer to consider that a tax advantage might have arisen.
• Any notice issued can be expressly stated to be given on the assumption that the tax advantage exists, without Revenue Scotland actually agreeing that it does.
• This provision ensures that the anti-avoidance process can proceed on a precautionary basis, without delay caused by first having to establish the existence of the advantage with certainty.