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

Chapter 11: Dispute Resolution

11.1 The Scottish Government proposes that taxpayers (and their fiscal or administrative representatives, should these be provided for) who disagree with certain decisions by the tax authority in relation to a Scottish replacement to the UK Aggregates Levy will have the statutory right to request that the tax authority carries out an internal review of that decision and to also appeal to an independent tribunal. A system of mediation will also be offered, but this would need to be jointly agreed by both parties (typically the taxpayer and the tax authority).

11.2 The Scottish Government proposes to use the provisions of Part 11 of the RSTPA 2014 to establish the legislative framework for disputing decisions made by Revenue Scotland in relation to that tax. This will ensure that the dispute resolution system and process for a Scottish replacement to the UK levy is consistent with the other devolved taxes, with reviews carried out by Revenue Scotland and appeals decided by the Tax Chamber of the First-tier Tribunal for Scotland and onwards to Upper Tribunal for Scotland. Guidance on the dispute resolution process is available on the Revenue Scotland website.

11.3 It is further proposed that the list of decisions made by Revenue Scotland in relation to a Scottish replacement to the UK levy, against which a notice of review or appeal can be given, will be those set out in section 233(1) of the RSTPA 2014. The list of Revenue Scotland decisions against which a notice of review or appeal cannot be given will be those set out in section 233(4) of the RSTPA 2014.

Appealable decisions

11.4 The RSTPA 2014 defines as "appealable decisions‟ the list of Revenue Scotland decisions against which a person aggrieved by that decision has the right to give a notice of review or appeal. The current list of appealable decisions is:

• a decision to make adjustments to counteract a tax advantage;
• a decision in relation to the registration of any person in relation to any taxable activity;
• a decision which affects whether a person is chargeable to tax;
• a decision which affects the amount of tax to which a person is chargeable;
• a decision which affects the amount of tax a person is required to pay;
• a decision which affects the date by which any amount by way of tax, penalty or interest must be paid;
• a decision in relation to a penalty;
• subject to certain conditions and exceptions, a decision in relation to the giving of an information notice or in relation to the use of any other investigatory powers; and
• subject to certain conditions, a decision in relation to the giving of a notice to a third party requiring them to supply the contact details of a debtor.

11.5 The current list of Revenue Scotland decisions which are not appealable decisions are:

• giving a notice of proposed counteraction of a tax advantage under the Scottish GAAR;
• making a Revenue Scotland determination in the event of no tax return being submitted; and

• a decision to give a notice of enquiry

Questions

B19 – Do you agree with our proposals for dispute resolution in relation to a Scottish replacement tax for the UK Aggregates Levy?

If you answered no, please explain your answer.

B20 – What, if any, other decisions not on the proposed list of appealable decisions do you think should be included and why?