Penalties

1. Overview
2. Penalty for failure to weigh aggregate correctly
3. Penalty for failure to notify Revenue Scotland of production of exempt aggregate
4. Failure to keep records of production of exempt aggregate
5. Inaccurate documents in tax credit claim
6. Failure to request approval of tax representative appointment
7. Failure to notify change to group treatment application or notification
8. Failure to notify cessation of eligibility for group treatment or of having place of business in UK
9. Penalty for failure to provide security

Overview

The penalties covered in this guidance relate specifically to Scottish Aggregates Tax and are not applicable to the other devolved taxes.

The RSTPA guidance provides general guidance on penalties that are shared across the devolved taxes. In the case of penalties applicable to Scottish Aggregates Tax, the following penalties are explained in the RSTPA guidance:

1. failure to make a return
2. failure to pay tax
3. inaccuracies in taxpayer documents
4. failure to register for tax

Penalty for failure to weigh aggregate correctly

If you fail to weigh aggregate appropriately and tax has not been declared and paid as a result of this failure, then you may be liable to a deliberate penalty.

The appropriate weighing method will either be via weighbridge, or through a Revenue Scotland agreed or specified alternative weighing method. More detail on weighing aggregate can be found in the tax calculation guidance.

Penalty for failure to notify Revenue Scotland of production of exempt aggregate

If you produce certain types of exempt aggregates on site, you must notify Revenue Scotland, as set out in our exemptions guidance. If you fail to notify Revenue Scotland, you will become liable for a penalty of £1,000.

Failure to keep records of production of exempt aggregate 

If you do not need to register for Scottish Aggregates Tax but are required to keep records of production of exempt aggregate under Section 18(6) AT(S) Act 2024, then you will need to retain certain records to support your eligibility for your exempt status.  More detail on record keeping requirements can be found in our record keeping guidance. If you fail to keep these records as described, you will become liable to a penalty of £1,000.

Inaccurate documents in tax credit claim 

If you make a claim for a tax credit where aggregate has been used in an industrial or agricultural process specified in the Regulations (see tax credits guidance), then you will be required to retain documentary evidence of that claim.  

If a document you provide to Revenue Scotland as evidence is inaccurate, then you may be liable to a penalty. The penalty amount is the difference between the credit that was included on the original claim, and the amount that would have been due on the claim had the document been accurate.  

The person who provided the document to Revenue Scotland is liable to a penalty. Any person who provided the document to someone, with a view of it being used as evidence for the claim, will also be liable to a penalty. 

Failure to request approval of tax representative appointment

If you are a non-resident taxpayer, then you must appoint a UK resident to be your tax representative. If you are required to appoint a UK tax representative as set out in section 26(1) AT(S) act 2024, you must obtain Revenue Scotland’s prior approval for this appointment.

If:

1. you fail to gain Revenue Scotland approval for this appointment
2. you do not appoint a tax representative 

you will become liable to a penalty of £10,000. 

More detail on tax representatives can be found in our UK tax representative guidance.  

Failure to notify change to group treatment application or notification 

If any of the information provided in connection with your group treatment application has changed, you must notify revenue Scotland immediately. More detail on groups can be found in our registration guidance. 

If you fail to do so, you will become liable to a penalty of £250.

Failure to notify cessation of eligibility for group treatment or of having place of business in UK 

You must notify Revenue Scotland that you have ceased to be a member of a group immediately. More detail on groups can be found in our registration guidance. 

If you fail to do this, you will become liable to a penalty of £500.

Penalty for failure to provide security 

If you fail to provide security, as directed by Revenue Scotland under section 36 or 37 AT(S) Act 2024, then you will become liable to a penalty of £20,000. More detail can be found on securities in our securities guidance.