Breaking New Ground? Developing a Scottish tax to replace the UK Aggregates Levy: consultation

Chapter 7: Tax Returns And Payments

7.1 The Scottish Government recognises that taxpayers already have systems in place to accommodate the UK Aggregates Levy return. It is important in designing the tax return for a devolved tax that it facilitates efficient and effective compliance of the tax, as well as making the transition for taxpayers as easy as possible.

7.2 The following sections outline the Scottish Government's proposals on how the system for tax returns and payment of tax would be structured and operate in relation to a devolved tax.

Frequency of tax return

7.3 To support administrative efficiency the Scottish Government proposes to introduce a standard quarterly tax return cycle for a devolved tax, covering the following return periods:

• Quarter 1: 1 April – 30 June;
• Quarter 2: 1 July to 30 September;
• Quarter 3: 1 October to 31 December;
• Quarter 4: 1 January to 31 March.

7.4 A standard quarterly tax return cycle would reduce the administrative burden on both taxpayers and Revenue Scotland. In addition, consistency with the quarterly tax return period currently used for SLfT will reduce the number of legislative amendments to the RSTPA 2014 required to implement civil penalty proposals.

Submitting a tax return & paying tax

7.5 The Scottish Government proposes that the tax return for a Scottish replacement for the UK levy will be submitted online.

7.6 The Scottish Government proposes that any tax due will be paid electronically via the same online system. The payment methods available to a taxpayer will be Direct Debit, BACS, CHAPS and Faster Payments.

7.7 Taxpayers and appointed fiscal or administrative representatives will be required to keep and preserve certain types of records and accounts to substantiate information in the tax return.

Claims for repayment and relief

7.8 The Scottish Government proposes that, where taxpayers feel that they have overpaid tax, have been double charged or that a tax assessment by the tax authority is greater than it should be, taxpayers will have the right to make a claim for this amount to either be repaid or discharged.

7.9 We expect claims for reliefs to be made in the quarterly returns. The rules governing repayment and relief set out in Part 6 Chapter 7 of the RSTPA 2014, including the rules which allow Revenue Scotland to deny repayment, are expected to apply. We would welcome views as to whether any changes are required to the current rules for the new aggregates tax.

Questions

B8 – Do you agree with our proposal for a standard quarterly tax return cycle for the devolved tax? If you answered no, please explain your answer.

B9 – What information could you provide on a Scottish tax return to aid the efficient and effective compliance of the tax?

B10 – Do you have any comments on the Scottish Government proposals regarding submitting a return and paying the tax, or the supporting information to be kept by taxpayers?

B11 – Do you foresee any difficulties in making claims for reliefs as part of the quarterly return process?