RSTP7003 - Claim for tax to be repaid or discharged

RSTPA guidance on rules regarding making a claim for tax to be repaid or discharged.

Claim for tax to be repaid

You can make a claim to us for repayment of an amount of tax which you have already paid (including under a contract settlement – see RSTP5002) but which you now believe is not chargeable. If another person paid the amount of tax on your behalf  for the purposes of this type of claim the amount is treated as having been paid by you.

Any claim for repayment made with respect to an amount paid under a contract settlement must be made by the person who is liable to pay under the contract settlement (the claimant), whether or not this was the person whose tax liability was covered by the agreement (the taxpayer). This might be the case where, for example, a nominated partner in a property partnership enters into a contract settlement with us on behalf of the partnership or another partner in the partnership. The nominated partner in this case would have to make the claim for repayment.

Where such a claim is made which then gives us grounds to make an assessment against the taxpayer (see RSTP1008), any amount repaid to the claimant can be set-off against any amount payable by the taxpayer as a result of the assessment. The obligations of both us and the taxpayer are discharged to the extent (but only to the extent) that one liability is offset by the other.

If the amount of tax was originally paid by a person acting in the capacity of a responsible partner or representative partner, a claim for repayment of that amount can only be made by a responsible partner who is nominated to do so by all of the responsible partners who would have been liable to pay the amount had it been due.

Making the claim for repayment

You can make the claim by writing to us (clearly marking the letter with ‘Claim for tax to be repaid') at the  contact address provided on our website. You cannot make the claim by including it in a new or amended tax return. You must:

  • make the claim within five years of the filing date (see RSTP1000) of the tax return to which the original payment of tax relates;
  • provide a declaration that all the particulars given in your claim are correctly stated to the best of your information and belief; and
  • keep and preserve certain records which may be needed to make a correct and complete claim (see LBTT9001 and SLfT8001). If you fail to keep and preserve these records as required you may be liable to a penalty (see RSTP3002).

Your claim should also:

  • state that you are making a claim under  section 107 of the Revenue Scotland and Tax Powers Act 2014;
  • state the tax and amount that you are seeking repayment against;
  • state the grounds on which you believe that the overpayment has occurred; and
  • provide supporting statements, documents and any other information which we might reasonably require to determine whether and, if so, the extent to which the claim is correct.

You can amend your claim by notifying us as above, but also stating the grounds on which you are amending the original claim. No amendment may be made:

  • more than 12 months after the day on which the original claim was made; or
  • if we give you a notice of enquiry (see RSTP7007), during the period beginning with the day on which that notice is given and ending with the day on which the enquiry is completed.

Once such a claim has been made, in some circumstances we can disregard certain restrictions on our ability to make an assessment against the person who made the claim (see RSTP1008 for more information).

If we accept your claim we will:

  • repay the amount as soon as is practicable; and
  • repay the amount with interest (see RSTP4004).

We will not accept a claim for repayment of tax unless you provide documentary evidence that the tax has been paid. We can also reject your claim in other circumstances, for example where we believe that to repay the amount would unjustifiably enrich you (see RSTP7005). If we reject your claim, you can give a notice of review (see RSTP6006) or appeal (see RSTP6008) against our decision.   

Once we have received your claim we may decide to:

  • open an enquiry in relation to your claim (or amendment of a claim) - see RSTP7007; or
  • correct the claim for an obvious error or omission – see RSTP7008.

If the claim contains a careless or deliberate inaccuracy which amounts to, or leads to, a false or inflated claim for relief or repayment then you may be liable to a penalty. See RSTP3011 for further guidance.

       

RSTPA 2014 section 107

RSTPA 2014 sections 114-117

RSTPA 2014 section 118

RSTPA 2014 schedule 3 paragraphs 1, 2, 10 and 12

Claim for tax to be discharged

You can make a claim to us for an amount of tax to be discharged if you believe it is not chargeable following an assessment or determination we have made against you in relation to that amount.

If we made the assessment or determination in relation to a person acting in the capacity of a responsible partner or representative partner, any claim for the amount of tax to be discharged can only be made by a responsible partner who is nominated to do so by all of the responsible partners who would have been liable to pay the amount had the assessment or determination been correctly made.

Making the claim for tax to be discharged

You can make the claim by writing to us (clearly marking the letter with 'Claim for tax to be discharged') at the contact address provided on our website. You cannot make the claim by including it in a new or amended tax return. You must:

  • make the claim within five years of the filing date (see RSTP1000) of the tax return to which the assessment or determination relates;
  • provide a declaration that all the particulars given in your claim are correctly stated to the best of your information and belief; and
  • keep and preserve certain records which may be needed to make a correct and complete claim (see LBTT9001 and SLfT8001). If you fail to keep and preserve these records as required you may be liable to a penalty (see RSTP3002).

Your claim should also:

  • state that you are making a claim under section 107 of the Revenue Scotland and Tax Powers Act 2014;
  • state the tax and amount that you are seeking to be discharged;
  • state the grounds on which you believe that the amount in the assessment or determination is not chargeable; and
  • provide supporting statements, documents and any other information which we might reasonably require to determine whether and, if so, the extent to which the claim is correct.

You can amend your claim by notifying us as above, but also stating the grounds on which you are amending the original claim. No amendment may be made:

  • more than 12 months after the day on which the original claim was made; or
  • if we give you a notice of enquiry (see RSTP7007), during the period beginning with the day on which that notice is given and ending with the day on which the enquiry is completed.

Once such a claim has been made, in some circumstances we can disregard certain restrictions on our ability to make an assessment against the person who made the claim (see RSTP1008 for more information).

If we accept your claim we will discharge the amount as soon as is practicable.

In certain circumstances we can reject your claim, for example where we believe that to discharge the amount would unjustifiably enrich you (see RSTP7005). If we reject your claim, you can give a notice of review (see RSTP6006) or appeal (see RSTP6008) against our decision.   

Once we have received your claim we may decide to:

  • open an enquiry in relation to your claim (or amendment of a claim) - see RSTP7007; or
  • correct the claim for an obvious error or omission – see RSTP7008.

If the claim contains a careless or deliberate inaccuracy which amounts to, or leads to, a false or inflated claim for relief or repayment then you may be liable to a penalty. See RSTP3011 for further guidance.

RSTPA 2014 section 107

RSTPA 2014 sections 114-117

RSTPA 2014 section 118

RSTPA 2014 schedule 3 paragraphs 1, 2, 10 and 12

Ref ID: 
RSTP7003
Archive Date: 
27 April 2015
Last updated: 
15 March 2015
CAPTCHA
Security check. Please answer this simple maths problem. E.g. for 1+3, enter 4
5 + 5 =
Solve this simple math problem and enter the result. E.g. for 1+3, enter 4.