If you fail to keep and preserve records as required under:
- section 74 of the RSTPA 2014 - section 74(1), keeping and preserving records in relation to making a tax return, applies to both LBTT and SLfT; section 74(3), keeping and preserving records in relation to registration for tax or material at a landfill site, only applies to SLfT;
- section 81 of the RSTPA 2014 - this only applies to non-notifiable LBTT land transactions;
- paragraph 3 of schedule 3 to the RSTPA 2014 - this applies to both LBTT and SLfT and relates to claims made under section 106, 107 or 108 of the RSTPA 2014 (for repayment etc.) that are not in the form of a tax return;
- The Revenue Scotland and Tax Powers Act (Record Keeping) Regulations 2015 - this applies to both LBTT and SLfT and relates to keeping and preserving records in relation to making a tax return, keeping and preserving records in relation to registration for tax or material at a landfill site, and non-notifiable LBTT land transactions; or
- regulation 6 of The Revenue Scotland and Tax Powers Act (Reimbursement Arrangements) Regulations 2015,
then you are liable to a penalty of up to £3,000, unless:
- we are satisfied that any facts we require to be proved (and which would have been proved by the records you failed to keep or preserve) are proved by other documentary evidence which has been provided to us; or
- you satisfy us or (on appeal) the tribunal that there is a reasonable excuse for your failure to comply with these provisions. See RSTP3022 for guidance on what may, and may not, constitute a reasonable excuse.
See LBTT9001 and SLfT8001 for guidance on keeping and preserving records in compliance with the above provisions, including the length of time such records must be kept and preserved for.
We must make an assessment and notify you of your liability to the penalty within 12 months of the date on which you first became liable to the penalty.
You must pay the penalty no later than 30 days from the date on which we issued the notice of the penalty assessment to you, unless:
- you give a notice of review (see RSTP6006) against the penalty, in which case you must (if the decision to impose the penalty is upheld) pay the penalty no later than 30 days from the date on which the review is concluded;
- you enter into mediation with us following a review but either you or we then give notice of withdrawal from mediation (see RSTP6007), in which case you must pay the penalty no later than 30 days from the date on which either you or we gave the notice of withdrawal; or
- you give a notice of appeal (see RSTP6008) against the penalty, in which case you must pay the penalty no later than 30 days from the date on which the appeal is determined to confirm the penalty or the appeal is withdrawn.
We will charge interest on the amount of any unpaid penalty from the date on which the penalty is due to be paid until you pay it (see RSTP4003).
A penalty for failure to keep and preserve records is treated for enforcement purposes (see RSTP5001) as an assessment to tax. This means that we have the same debt enforcement and recovery powers in relation to this penalty (and other penalties) as we have in relation to tax.
RSTPA 2014 schedule 3 paragraphs 5-8
The Revenue Scotland and Tax Powers Act (Reimbursement Arrangements) Regulations 2015 regulation 9 (this applies the provisions of paragraphs 5-8 of schedule 3 to the RSTPA 2014)
Ref ID
RSTP3002
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