All in the wrong

Revenue Scotland’s obligations when a review is requested

The taxpayer bought a property in April 2015 but submitted its land and buildings transaction tax return in February 2016 290 days late. No tax was due but Revenue Scotland issued penalty notices for the delayed filing. The company appealed. Its solicitors accepted they were to blame for the late return but said this was because of difficulties registering title and negotiations with the selling solicitors.

The First-tier Tribunal said the ‘harsh reality’ was that the completion of the return was simple. The taxpayer’s solicitors had prepared the return but overlooked posting it.

However the tribunal noted that the taxpayer had asked Revenue Scotland to review its decision to impose the penalties. But instead of telling the taxpayer the outcome of the review – as required under Revenue Scotland Tax Powers Act 2014 s 237 – the authority...