RSTP7005 - Rejecting a claim for tax to be repaid or discharged

RSTPA guidance on the various circumstances in which Revenue Scotland can reject a claim for tax to be repaid or discharged, including unjust enrichment.

Rejecting a claim due to unjustified enrichment

We can reject a claim from you for an amount to be repaid or discharged (and which falls within RSTP7003 and RSTP7004) if repaying or discharging that amount would unjustly enrich you. See RSTP7006 for further guidance.

Where this is the case, you can give a notice of review (see RSTP6006) or appeal (see RSTP6008) against our decision to reject your claim.

RSTPA 2014 section 109

Rejecting a claim in other cases not related to unjustified enrichment

We can also reject a claim from you for an amount to be repaid or discharged (see RSTP7003) if or to the extent that the claim:

  • applies to any of the following cases A to G; and
  • the claim is not made in relation to a relevant order ceasing to have effect because it has not been approved by the Scottish Parliament (see RSTP7004).

Where this is the case, you can give a notice of review (see RSTP6006) or appeal (see RSTP6008) against our decision to reject your claim.

Case A applies where the amount of tax paid, or liable to be paid, is excessive because of either a mistake in the claim or you making the claim (or failing to make the claim) by mistake.

Case B applies where you seek relief (or will be able to seek relief) by taking other steps under Part 6 of the RSTPA 2014, such as amending your tax return (under section 83 of the RSTPA 2014 - see RSTP1002) or making a tax return to us following a determination we have made (under section 97 of the RSTPA 2014 – see RSTP1007).

If the amount in the claim was paid under a contract settlement, and the person who paid the amount (who must be the claimant – see RSTP7003) was not the person from whom the tax was due (the taxpayer), then case B does not apply as the claimant cannot seek relief by taking any other steps under Part 6 of the RSTPA 2014.

Case C applies where:

  • you could have sought relief by taking other steps under Part 6 of the RSTPA 2014 (see above) but the time period for doing so has now expired; and
  • you knew (or should have reasonably known before the end of that period) that such a relief was available to you.

If the amount in the claim was paid under a contract settlement, and the person who paid the amount (who must be the claimant – see RSTP7003) was not the person from whom the tax was due (the taxpayer), then case C does not apply as the claimant cannot seek relief by taking any other steps under Part 6 of the RSTPA 2014.

Case D applies where you have made the claim on grounds that either:

  • have already been put to a court or tribunal in the course of an appeal by you relating to the amount that has been paid or is liable to be paid; or
  • have already been put to us in the course of a review or appeal by you relating to the amount that has been paid or is liable to be paid, and the grounds are treated as having been determined by the tribunal by virtue of a settlement agreement being entered into under section 246 of the RSTPA 2014 (see RSTP6013).

If the amount was paid under a contract settlement, and the person who paid the amount (who must be the claimant – see RSTP7003) was not the person from whom the tax was due (the taxpayer), then references to ‘you’ in this case include the taxpayer.

Case E applies where you knew (or should have reasonably known) about the grounds for the claim before the latest of any of the following:

  • the date on which a relevant appeal (in the course of which the ground could have been put forward) was determined by a court or tribunal, or is treated as having been so determined;
  • the date on which you withdrew a relevant appeal to a court or tribunal; or
  • the end of the period in which you were entitled to make a relevant appeal to a court or tribunal.

‘Relevant appeal’ means an appeal by you relating to the amount paid or liable to be paid which is the subject of the claim.

If the amount was paid under a contract settlement, and the person who paid the amount (who must be the claimant – see RSTP7003) was not the person from whom the tax was due (the taxpayer), then all references to ‘you’ in this case include the taxpayer.

Case F applies where the amount in question was paid or is liable to be paid either:

  • in consequence of proceedings enforcing the payment of that amount brought about by us against you (see RSTP5003); or
  • in accordance with an agreement between you and us settling such proceedings (see RSTP5002).

If the amount was paid under a contract settlement, and the person who paid the amount (who must be the claimant – see RSTP7003) was not the person from whom the tax was due (the taxpayer), then all references to ‘you’ in this case include the taxpayer.

Case G applies where the amount paid, or liable to be paid, is excessive because of a mistake in calculating your tax liability, and that liability was calculated in accordance with the practice generally prevailing at the time.

If the amount was paid under a contract settlement, and the person who paid the amount (who must be the claimant – see RSTP7003) was not the person from whom the tax was due (the taxpayer), the mistake must be in the taxpayer’s tax liability, not the claimant’s.

Case G does not apply where the amount paid, or liable to be paid, is tax which has been charged contrary to EU law.

Tax is charged contrary to EU law if, in the circumstances in question, the tax charged is contrary to the provisions relating to the free movement of goods, persons, services and capital in Titles II and IV of Part 3 of the Treaty on the Functioning of the European Union, or the provisions of any subsequent treaty replacing these provisions.

RSTPA 2014 section 113

RSTPA 2014 section 118

Ref ID: 
RSTP7005
Archive Date: 
27 April 2015
Last updated: 
27 April 2015
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