RSTP8007 - Counteraction process under the Scottish GAAR

RSTPA guidance on the counteraction process under the Scottish GAAR, including an initial notice of proposed counteraction and a final counteraction notice.

Notice of proposed counteraction under the Scottish GAAR

If we consider that you have (or might have) benefited from a tax advantage that has arisen from an artificial tax avoidance arrangement, we will notify you proposing that we intend to counteract that advantage under the Scottish GAAR. Where we think that a tax advantage might have arisen, we can give you the notice on the assumption that the tax advantage does arise, without agreeing that it does.

The notice we give you must:

  • specify the tax avoidance arrangement and the tax advantage;
  • explain why we consider that you have benefited from a tax advantage that has arisen from an artificial tax avoidance arrangement;
  • set out the counteraction that we consider should be taken (see RSTP8006); and
  • inform you that you have 45 days beginning with the day on which the notice is given to send representations to us in response to the notice. We must take into account of any representations you make to us.

The notice may also set out the steps that you may take to avoid the proposed counteraction.

RSTPA 2014 section 68



RSTPA 2014 section 71

Final notice of counteraction under the Scottish GAAR

After the period for making representations to us has expired, we must notify you whether or not the tax advantage arising from the artificial tax avoidance arrangement is to be counteracted by us under the Scottish GAAR. Where we think that a tax advantage might have arisen, we can give you the notice on the assumption that the tax advantage does arise, without agreeing that it does.

If the tax advantage is to be counteracted under the Scottish GAAR, the notice we give you must also set out:

  • the adjustments required to give effect to the counteraction (see RSTP8006); and
  • where relevant, any steps that you are required to take to give effect to that counteraction and the period within which you must take those steps.

RSTPA 2014 section 69



RSTPA 2014 section 71

What to do if we notify you we are counteracting an arrangement under the GAAR

If you receive a notice of proposed counteraction under the Scottish GAAR, you have 45 days from the date we give you the notice in which to send any representations to us which you wish to make in response to the notice. If you would like the 45 day representation period to be extended you should contact us once you have received the notice and we will consider your request.

You cannot give a notice of review or appeal in relation to decision by us to give a proposed notice of counteraction (see RSTP6003).

RSTPA 2014 section 68



RSTPA 2014 section 233(4)(a)

If you receive a final notice of counteraction under the Scottish GAAR, you can:

  • accept the notice, in which case you should pay the amount by the due date (see RSTP8006); or
  • if you disagree with any decision we have made in relation to the final notice of counteraction, give a notice of review (see RSTP6006) or appeal (see RSTP6008) in relation to the decision.

RSTPA 2014 section 69



RSTPA 2014 section 233

Ref ID: 
RSTP8007
Archive Date: 
15 March 2015
Last updated: 
15 March 2015
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