Failure to file three-year lease review tax return

In September 2016 the taxpayer’s agent submitted an electronic land and buildings transaction tax return for two car parking spaces.

In August 2019 Revenue Scotland reminded the taxpayer that the three-year lease review return was due by 1 October (Land and Buildings Transaction Tax (Scotland) Act 2013 Sch 19 para 10) and that penalties would be imposed if it was not submitted on time. The taxpayer did not meet the deadline so Revenue Scotland issued a penalty. In November the taxpayer submitted an electronic return and appealed against the penalty.

The taxpayer argued that she was Taiwanese and unfamiliar with the requirements of Scots law. Further the obligation to make the three-year return arose out of an investment in an airport parking scheme which had not been a commercial success. As a result she had not received the expected returns and was unable to pay.

The First-tier...