What can a Revenue Scotland enquiry into a tax return cover under section 86?

Under section 86 of the Revenue Scotland and Tax Powers Act 2014, an enquiry can cover anything contained in the tax return or anything that should have been included. It extends to whether the person is liable to the relevant devolved tax and the amount of tax chargeable, allowing Revenue Scotland to review all figures, claims, and information.

Can Revenue Scotland open a new enquiry after a taxpayer amends a previously enquired-into return?

Yes, Revenue Scotland may open a new enquiry after a taxpayer amends a return that has already been through an enquiry. However, the new enquiry is restricted in scope and can only examine the matters directly related to the amendment and any other matters consequentially affected by the changes made.

What is the restricted scope of a post-amendment enquiry under RSTPA 2014 section 86?

A post-amendment enquiry is confined to the matters the taxpayer's amendment directly relates to and any matters affected by those changes. For example, if a taxpayer alters the consideration figure, Revenue Scotland can examine that figure and the resulting tax calculation but cannot revisit unrelated parts of the return already examined previously.

How does section 86 protect taxpayers from repeated wide-ranging enquiries?

Section 86 balances Revenue Scotland's powers by allowing broad initial enquiries but restricting subsequent enquiries after amendment to only the amended matters and consequential impacts. This prevents Revenue Scotland from using a minor amendment as a basis to reopen examination of the entire return that was already fully reviewed.

Revenue Scotland and Tax Powers Act 2014 section 86

Scope of enquiry

Section 86 defines how far a Revenue Scotland enquiry into a tax return can extend, and places limits on further enquiries where a return has already been enquired into and subsequently amended by the taxpayer.

An enquiry can cover anything in the tax return, or anything that should have been in it, relating to whether the person is liable to the devolved tax in question or how much tax they owe.
If the taxpayer amends their return after an earlier enquiry has already been completed, Revenue Scotland may open a new enquiry, but only into matters connected with that amendment.
The restricted scope of a post-amendment enquiry covers both the matters directly changed by the amendment and any matters affected by those changes.
This provision balances Revenue Scotland's need to check returns thoroughly against protecting taxpayers from repeated wide-ranging enquiries into the same return.

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