Ignorance is no excuse

Penalty for late land and buildings transaction tax return

The taxpayer leased new premises in January 2016 but was late submitting his land and buildings transaction tax return. He claimed reasonable excuse saying there was no delay to revenue because none was due. There had also been initial confusion as to whether the landlord’s solicitor or the taxpayer’s accountant would file the return. Revenue Scotland imposed a penalty.

The judge noted this was the first case to come before the First-tier Tribunal of the Tax Tribunal for Scotland. He did not accept the taxpayer’s contention that the late submission was less relevant when no tax was payable:

‘The whole intent of parliament and the whole purpose of Revenue Scotland is to collect for the Scottish government the correct amount of tax. This can only be calculated if they are informed of all relevant transactions...’

There was no condition...