RSTP3003 - Repayment and reimbursement related penalties

RSTPA guidance on penalties that a person may be liable to for failing to comply with requirements in relation to reimbursement arrangements and claims.

This section covers two different penalties which relate to failing to comply with certain rules for reimbursement arrangements. Such reimbursement arrangements are those which a taxpayer must enter into and fully comply with in order for us to consider whether or not accepting a claim for repayment from the taxpayer would unjustifiably enrich them. See RSTP7006 for further guidance.

Penalties in relation to failure to comply with notice to produce records about reimbursement arrangements

If you fail to comply with a notice under regulation 7 of The Revenue Scotland and Tax Powers Act (Reimbursement Arrangements) Regulations 2015 to produce records to us that you are required to keep in relation to reimbursement arrangements, you are liable to an initial fixed penalty of £300 and a further fixed penalty of up to £60 for each subsequent day you fail to comply with the notice.

You may also be liable to a separate penalty if you have failed to keep and preserve the records that the notice requires to be produced (see RSTP3002).

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 comply with such a notice 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.

Penalty in relation to reimbursement arrangements and claims for repayment

You are liable to a penalty for failing to comply with regulation 5 of The Revenue Scotland and Tax Powers Act (Reimbursement Arrangements) Regulations 2015 whereby:

  • an amount which has not been reimbursed within the 90 day time limit is due to be repaid to us without prior demand within 30 days of that time limit expiring (see RSTP7006); and
  • you have failed to do this.

The penalty amount is 100% of the amount you are required to repay us. This penalty is due and payable in addition to the amount that you were already required to repay us.

 

Unlike other penalties we will not charge interest on this penalty if you fail to pay it by the due date.

A penalty for failure to comply with such a notice 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 sections 109-112

The Revenue Scotland and Tax Powers Act (Reimbursement Arrangements) Regulations 2015 regulation 9

Ref ID: 
RSTP3003
Archive Date: 
27 April 2015
Last updated: 
15 March 2015
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