Legalize / United Kingdom / Scotland / Act of the Scottish Parliament

Revenue Scotland and Tax Powers Act 2014

Type Act of the Scottish Parliament

Publication 2014-09-24

State In force

Jurisdiction Scotland

Department Statute Law Database

Source legislation.gov.uk

Reform history JSON API

PART 1 — Overview of Act

Overview

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This Act is arranged as follows—

Part 2 establishes Revenue Scotland and provides for its general functions and responsibilities,

Part 3 makes provision about the use and protection of taxpayer and other information,

Part 4 establishes the Scottish Tax Tribunals,

Part 5 puts in place a general anti-avoidance rule,

Part 6 contains provisions on the self-assessment system, the checking of tax returns by Revenue Scotland and claims for repayment of tax,

Part 7 makes provision for Revenue Scotland's investigatory powers,

Part 8 sets out the matters in relation to which penalties may be imposed,

Part 9 makes provision about the interest payable on unpaid tax, on penalties and on tax repayments,

Part 10 contains provisions on debt enforcement by Revenue Scotland,

Part 11 sets out the system for the review, mediation and appeal of Revenue Scotland decisions, and

Part 12 contains general and final provisions.

PART 2 — Revenue Scotland

Establishment of Revenue Scotland

Revenue Scotland

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(1) There is established a body corporate to be known as Revenue Scotland.

(2) In Gaelic, Revenue Scotland is to be known as Teachd-a-steach Alba.

(3) Schedule 1 makes further provision about the membership, procedures and staffing of Revenue Scotland.

Functions of Revenue Scotland

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(1) Revenue Scotland's general function is the collection and management of the devolved taxes.

(2) Revenue Scotland has the following particular functions—

(a) providing information, advice and assistance to the Scottish Ministers relating to tax,

(b) providing information and assistance to taxpayers, their agents and other persons relating to the devolved taxes,

(d) protecting the revenue against tax fraud and tax avoidance.

(3) “Devolved taxes” has the meaning given by section 80A(4) of the Scotland Act 1998 (c.46).

Delegation of Revenue Scotland functions

Delegation of functions by Revenue Scotland

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(1) Revenue Scotland may delegate—

(a) any of its functions relating to land and buildings transaction tax to the Keeper of the Registers of Scotland (“the Keeper”),

(b) any of its functions relating to Scottish landfill tax to the Scottish Environment Protection Agency (“SEPA”).

(2) Revenue Scotland may give directions to the Keeper or to SEPA as to how a delegated function is to be exercised and the Keeper and SEPA must comply with any such direction.

(3) Delegations or directions under this section may be varied or revoked at any time.

(4) Revenue Scotland must publish information about—

(a) delegations under this section, and

(b) directions given under this section.

(5) Revenue Scotland must lay before the Scottish Parliament a copy of information published under subsection (4).

(6) Subsections (4) and (5) do not apply to the extent that Revenue Scotland considers that publication of the information would prejudice the effective exercise of its functions.

(7) Delegation of a function under this section does not affect—

(a) Revenue Scotland's ability to exercise that function,

(b) Revenue Scotland's responsibility for that function.

(8) Revenue Scotland may reimburse the Keeper or SEPA for any expenditure incurred which is attributable to the exercise by the Keeper or SEPA of functions delegated under this section.

Money

Payments into the Scottish Consolidated Fund

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(1) Revenue Scotland must pay money received in the exercise of its functions into the Scottish Consolidated Fund.

(2) But Revenue Scotland may do so after deduction of payments in connection with repayments, including payments of interest on—

(a) repayments, or

(b) payments treated as repayments.

Rewards

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Revenue Scotland may pay a reward to a person in return for a service which relates to a function of Revenue Scotland.

Independence of Revenue Scotland

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(1) The Scottish Ministers must not—

(a) give directions relating to, or

(b) otherwise seek to control,

the exercise by Revenue Scotland of its functions.

(2) This section is subject to any contrary provision made by or under this Act or any other enactment.

Ministerial guidance

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(1) The Scottish Ministers may give guidance to Revenue Scotland about the exercise of its functions.

(2) Revenue Scotland must have regard to any guidance given by Ministers.

(3) Ministers must publish any guidance given to Revenue Scotland under this section as they consider appropriate.

(4) The Scottish Ministers must lay before the Scottish Parliament a copy of guidance published under subsection (3).

(5) Subsections (3) and (4) do not apply to the extent that Ministers consider that publication of the guidance would prejudice the effective exercise by Revenue Scotland of its functions.

Provision of information, advice or assistance to Ministers

Provision of information, advice or assistance to the Scottish Ministers

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(1) Revenue Scotland must provide the Scottish Ministers with such information, advice or assistance relating to its functions as Ministers may from time to time require.

(2) The information, advice or assistance must be provided in such form as Ministers determine.

Charter of standards and values

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(1) Revenue Scotland must prepare a Charter.

(2) The Charter must include—

(a) standards of behaviour and values which Revenue Scotland is expected to adhere to when dealing with taxpayers, their agents and other persons in the exercise of its functions, and

(b) standards of behaviour and values which Revenue Scotland expects taxpayers, their agents and other persons to adhere to when dealing with Revenue Scotland.

(3) Revenue Scotland must—

(a) publish the Charter as it considers appropriate,

(b) review the Charter from time to time, and

(4) Before publishing or revising the Charter, Revenue Scotland must consult such persons as it considers appropriate.

(5) Revenue Scotland must lay the first Charter and any revised Charter before the Scottish Parliament.

Corporate plan

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(1) Revenue Scotland must, before the beginning of each planning period, prepare a corporate plan and submit it for approval by the Scottish Ministers.

(2) The corporate plan must set out—

(a) Revenue Scotland's main objectives for the planning period,

(b) the outcomes by reference to which the achievement of the main objectives may be measured, and

(3) Ministers may approve the corporate plan subject to such modifications as may be agreed between them and Revenue Scotland.

(4) If Ministers approve a corporate plan, Revenue Scotland must—

(a) publish the plan as Revenue Scotland considers appropriate, and

(b) lay a copy of the plan before the Scottish Parliament.

(5) During the planning period to which a corporate plan relates, Revenue Scotland may review the plan and submit a revised corporate plan to Ministers for approval.

(6) Subsections (2) to (4) apply to a revised corporate plan as they apply to a corporate plan.

(7) “Planning period” means—

(a) a first period specified by the Scottish Ministers by order, and

(b) each subsequent period of 3 years.

(8) The Scottish Ministers may by order substitute for the period for the time being specified in subsection (7)(b) such other period as they consider appropriate.

Annual report

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(1) As soon as possible after the end of each financial year, Revenue Scotland must—

(a) prepare and publish a report on the exercise of its functions during that year,

(b) send a copy of the report to the Scottish Ministers, and

(2) “Financial year” means—

(a) the period beginning with the establishment of Revenue Scotland and ending on 31 March in the following year, and

(b) each subsequent period of a year ending on 31 March.

(3) Revenue Scotland may publish such other reports and information on matters relevant to its functions as it considers appropriate.

PART 3 — Information

Use of information by Revenue Scotland etc.

Use of information by Revenue Scotland and other persons

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(1) A relevant person may use information held by the person in connection with a function in connection with any other function.

(2) In this section and section 14 “relevant person” means any or all of the following persons—

(a) Revenue Scotland,

(b) a member of Revenue Scotland,

(d) the chief executive or any other member of staff of Revenue Scotland,

(e) a person to whom Revenue Scotland has delegated any of its functions,

(f) a member of staff of a person mentioned in paragraph (e).

(3) In this section and section 14 references to a “function” are references to—

(a) a function of any of the persons mentioned in subsection (2)(a) to (d),

(b) in the case of a person mentioned in subsection (2)(e)—

(i) a function which Revenue Scotland has delegated to the person, and

(ii) a function under any other enactment,

(i) a function which Revenue Scotland has delegated to the person and which the member of staff is exercising, and

(ii) a function of the person under any other enactment which the member of staff is exercising.

Protected taxpayer information

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(1) “Protected taxpayer information” means information relating to a person—

(a) which is held by a relevant person in connection with a function of Revenue Scotland, and

(b) by which a person may be identified.

(2) Subsection (1)(a) does not apply to information about internal administrative arrangements of Revenue Scotland or of a person to whom Revenue Scotland has delegated any of its functions (whether the information relates to members or staff of Revenue Scotland or of such a person or to other persons).

(3) For the purposes of subsection (1)(b) a person may be identified by information if—

(a) the person's identity is specified in the information, or

(b) the person's identity can be deduced from the information (whether from that information on its own or from that information taken together with other information disclosed by or on behalf of Revenue Scotland).

Confidentiality of protected taxpayer information

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(1) A relevant official must not disclose protected taxpayer information unless the disclosure is permitted by subsection (3).

(2) In this section and section 16 “relevant official” means any individual who is or was—

(a) a member of Revenue Scotland,

(b) a member of a committee of Revenue Scotland,

(d) exercising functions on behalf of Revenue Scotland.

(3) A disclosure is permitted by this subsection if—

(a) it is made with the consent of each person to whom the information relates,

(b) it is made in accordance with any provision made by or under this Act or any other enactment requiring or permitting the disclosure,

(d) it is made for the purposes of civil proceedings,

(e) it is made for the purposes of a criminal investigation or criminal proceedings or for the purposes of the prevention or detection of crime,

(f) it is made in pursuance of an order of a court or tribunal,

(g) it is made to a person exercising functions on behalf of Revenue Scotland (other than a person to whom Revenue Scotland has delegated any of its functions) for the purposes of those functions.

Protected taxpayer information: declaration of confidentiality

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(1) Each relevant official must make a declaration acknowledging the obligation of confidentiality under section 15.

(2) A declaration must be made—

(a) as soon as reasonably practicable following the person's appointment, and

(b) in such form and manner as Revenue Scotland may determine.

(3) For the purposes of subsection (2)(a)—

(a) the renewal of a fixed term appointment is not to be treated as an appointment,

(b) a person mentioned in section 15(2)(d) is to be treated as appointed when the person begins to exercise functions on behalf of Revenue Scotland.

Other limits on use and disclosure of information

Disclosure of information prohibited or restricted by statute or agreement

17

Sections 13(1) and 15(3) are subject to any provision which prohibits or restricts the use of information and which is contained in—

(a) this Act,

(b) any other enactment,

(c) an international or other agreement to which the United Kingdom, Her Majesty's Government or the Scottish Ministers is or are party.

Protected taxpayer information: use by the Keeper

18

(1) This section applies to information that—

(a) is held by the Keeper in connection with a function which Revenue Scotland has delegated to the Keeper, and

(b) is protected taxpayer information.

(2) The Keeper may not use that information in connection with the Keeper's functions under section 108 of the Land Registration etc. (Scotland) Act 2012 (asp 5).

Offence of wrongful disclosure

Wrongful disclosure of protected taxpayer information

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(1) A person commits an offence if the person discloses protected taxpayer information contrary to section 15(1).

(2) It is a defence for a person charged with an offence under subsection (1) to prove that the person reasonably believed—

(a) that the disclosure was lawful under section 15, or

(b) that the information had already lawfully been made available to the public.

(3) A person who commits an offence under subsection (1) is liable—

(a) on summary conviction, to imprisonment for a term not exceeding 12 months or a fine not exceeding the statutory maximum (or both),

(b) on conviction on indictment, to imprisonment for a term not exceeding 2 years or a fine (or both).

(4) This section does not affect the pursuit of any remedy or the taking of any action in relation to a contravention of section 15(1).

PART 4 — The Scottish Tax Tribunals

CHAPTER 1 — Introductory

Overview

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CHAPTER 2 — Establishment and leadership

Establishment

The First-tier Tax Tribunal for Scotland and the Upper Tax Tribunal for Scotland

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Leadership

President of the Tax Tribunals

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Functions of the President of the Tax Tribunals

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Business arrangements

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Temporary President

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CHAPTER 3 — Membership

Membership of Tax Tribunals

Members

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Judicial members

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Status and capacity

Status and capacity of members

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CHAPTER 4 — Decision-making and composition

Decision-making and composition: general

Decisions in the First-tier Tribunal

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Decisions in the Upper Tribunal

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Composition of the Tribunals

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Decisions by two or more members

Voting for decisions

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Chairing members

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CHAPTER 5 — Appeal of decisions

Appeal from First-tier Tribunal

Appeal from the First-tier Tribunal

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Disposal of an appeal under section 34

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Appeal from Upper Tribunal

Appeal from the Upper Tribunal

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Disposal of an appeal under section 36

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