One could be forgiven for assuming that the Tribunals north of the border are the same as they are in England and Wales, but it is important to ensure you have clarity as to what rules apply in the specific venue where a Hearing may be taking place.
Whilst the Tax Tribunal in Scotland largely operates in the same way that the First-Tier Tribunal (Tax Chamber) does in England and Wales, there are some key differences to take heed of.
What are the main distinctions of the Scottish Tribunal?
Given that it is a separate entity, the Scottish Tribunal operates under a different name from the Tribunal in England and Wales.
Known as the First-tier Tribunal for Scotland Tax Chamber and Upper Tribunal for Scotland, the Tribunal handles appeals related to devolved taxes, primarily Land and Buildings Transaction Tax (LBTT) and Scottish Landfill Tax (SLfT).
It was established under the Revenue Scotland and Tax Powers Act 2014, which establishes Revenue Scotland and the framework for devolved tax administration and appeals, as well as the Tribunals (Scotland) Act 2014, which sets out the structure of the Scottish tribunal system, including the First-tier and Upper Tribunals.
The administration is managed by the Scottish Courts and Tribunals Service.
The Scottish Tribunals, therefore, are relatively new compared to the Tribunals in England and Wales.
What is the structure of the Tribunal in England and Wales?
The Tribunal in England and Wales operates under the names First-tier Tribunal (Tax Chamber) and Upper Tribunal (Tax and Chancery Chamber).
It handles appeals related to UK-wide taxes, including Income Tax, Corporation Tax, VAT, CGT, IHT, etc.
It acts as a unified system and is part of the UK-wide two-tier tribunal system and is managed by HM Courts and Tribunals Service (HMCTS).
The primary legislation that informs the operation of the Tribunal is the Tribunals, Courts and Enforcement Act 2007 (TCEA 2007), which establishes the unified tribunal system and procedural framework and the Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009, which governs procedure in the Tax Chamber.
Are there any similarities in the Tribunals?
One item which is virtually identical in the two Tribunals is the Procedural Rules governing each chamber.
The First-tier Tribunal for Scotland Tax Chamber (Procedure) Regulations 2017 are essentially identical to the Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009, but given how frequently they are updated, it is always worthwhile checking that there has been no deviation between them.
Perhaps the most important difference to take note of, however, is what case law is applicable and where.
In the Scottish Tribunals, binding precedents can come from the Scottish Courts and Tribunals, whereas in England and Wales, such decisions are not binding.
Practitioners should therefore be wary that the cases they are citing are relevant to the proceedings in hand.
The cost provisions in Scotland compared to England and Wales are virtually the same.
The general rule is that each party will bear their own costs or “expenses” in Scotland.
In some circumstances, such as complex cases or where there has been unreasonable conduct, then costs may be ordered against a party.
At Dyne Solicitors, we regularly deal with compliance matters. For more information, please contact Patrik Jones-Wright or John Dyne.