About Revenue Scotland
Revenue Scotland is a non-ministerial department established as Scotland’s tax administration body by the powers conferred under the Revenue Scotland and Tax Powers Act 2014. It administers the two taxes devolved to the Scottish Government under the Scotland Act 2012: the new Land and Buildings Transaction Tax (LBTT) and Scottish Landfill Tax (SLfT). It is anticipated that Revenue Scotland will take on the administration of further taxes as additional fiscal powers are devolved to Scotland.
There are significant challenges in effective collection of both LBTT and SLfT. It is estimated that Revenue Scotland may receive around 100,000 LBTT returns per year. These will be received daily, with a requirement for fast processing of returns and payments. The legislation requires taxpayers to have made a correct tax return and established arrangements to pay in order to be allowed to register title to property with Registers of Scotland.
The volume of returns for SLfT is much lower, at around 250 to 300 returns each quarter. However, the complexity is much higher and there is a significant issue around evasion, particularly for those caught illegally dumping. Tackling tax avoidance and evasion, while ensuring an efficient collection process for the majority of taxpayers who readily pay what is due, are essential activities for both the financial sustainability and reputation of Scottish Government.
In order to maximise convenience for taxpayers and to tackle compliance issues effectively, Revenue Scotland works with Registers of Scotland (RoS), the land registration body, and the Scottish Environment Protection Agency (SEPA), which regulates landfill site operators, on the collection of LBTT and SLfT respectively. Memoranda of Understanding set out the detail of the operational roles and responsibilities of RS, RoS and SEPA.
In line with international best practice, Revenue Scotland is at arm’s length from Ministers and accountable directly to Parliament. The Chief Executive is the Accountable Officer and works with the Board to ensure that Revenue Scotland provides clear, transparent performance reporting. The leadership of Revenue Scotland also maintains a strong working relationship with Scottish Ministers, with whom they agree the body's strategic priorities through the formal mechanism of periodic corporate plans.
Revenue Scotland is led by a Board made up entirely of non-executive members to which the Chief Executive will report. The Board, led by the Chair, is held accountable for the performance of Revenue Scotland. Member appointments are regulated through the Commissioner for Ethical Standards in Public Life in Scotland.
Revenue Scotland’s staff are civil servants, and the Chief Executive has overall responsibility for the Department’s day-to-day operation. Revenue Scotland is a relatively small organisation with an initial annual budget in the region of £3m (including payments to RoS and SEPA) and about 40 staff.
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