Tax must be paid when return is filed

The taxpayer submitted an electronic tax return for a property for which the effective date of the transaction was 10 August 2018. The return was filed on 13 August although the deadline was 9 September (Land and Buildings Transaction Tax (Scotland) Act 2013 s 29(3)). She paid the tax on 17 September although under s 40(2) it should have been paid at the same time as the return was made.

Revenue Scotland issued a penalty for late paid tax against which the taxpayer appealed. She said it was unfair and unreasonable to penalise her for late payment in effect for filing her return early. Had she submitted the return by the deadline of 9 September no penalties would have been incurred until 9 October – assuming she had a reasonable excuse.

The Scottish First-tier Tribunal said the obligation in s 40(2) was unambiguous and clear in requiring the...