How does Revenue Scotland open an enquiry into a tax return under section 85?

Revenue Scotland cannot open an enquiry informally. A designated officer must issue a formal notice of enquiry to the taxpayer or the person who submitted the return on their behalf. This written notification ensures the taxpayer is made fully aware that their return is being officially examined by Revenue Scotland.

What is the time limit for Revenue Scotland to issue a notice of enquiry?

Revenue Scotland must issue a notice of enquiry within 3 years of the relevant date. If the return was filed on or before the statutory filing date, the relevant date is the filing date. If the return was filed late, the relevant date is the actual date the return was made, giving Revenue Scotland at least 3 years from the deadline.

Can Revenue Scotland open more than one enquiry into the same tax return?

Generally, a return may only be subject to one notice of enquiry. However, if the taxpayer amends their return under section 83 of the Act, Revenue Scotland may issue a further notice of enquiry into the amended return. This exception ensures Revenue Scotland can examine any changes made after the original filing.

How is the relevant date determined for the enquiry time limit when a return is filed late?

When a return is filed after the statutory filing date, the relevant date becomes the actual date the return was made rather than the filing deadline. For example, if a return due on 30 April is filed on 15 June, Revenue Scotland has 3 years from 15 June to issue a notice of enquiry into that return.

Revenue Scotland and Tax Powers Act 2014 section 85

Notice of enquiry

Section 85 sets out the rules governing when and how Revenue Scotland may open an enquiry into a tax return, including the time limits for doing so and restrictions on repeat enquiries.

A designated officer of Revenue Scotland may enquire into a tax return, provided formal notice has been given to the taxpayer (or the person who submitted the return on the taxpayer's behalf).
The notice of enquiry must be issued within 3 years of the relevant date, which is either the filing date or the date the return was actually made, whichever is later.
Once a return has been subject to a notice of enquiry, a second enquiry into the same return is generally not permitted unless the taxpayer has amended the return, in which case a further notice may be issued.
The formal notification issued under this section is known as a "notice of enquiry".

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