New draft legislation on non-domestic rates (NDR) has been tabled to tackle tax avoidance and promote the Deposit Return Scheme (DRS).
Regulations laid before the Scottish Parliament will empower councils to crack down on tax-avoidance, such as the artificial use of insolvency, leasing arrangements or shell companies.
They would also make owners of non-domestic properties liable for payment, rather than the property’s occupiers, and allow for liability for payment to be backdated if an offence is repeated within a five-year period.
In a separate move, parts of properties solely used to house reverse vending machines, which refund users for recycling drinks containers, would be exempt from NDR.
This is being introduced by the Scottish Government to help support businesses to get ready for the DRS implementation on 16 August.
Further amendments to NDR, announced in the Scottish Budget 2023-24, will be published shortly as part of a package of regulations to provide more help for businesses through the current cost-of-living crisis.
Public Finance Minister Tom Arthur said: “The Scottish Government is committed to a fair and transparent system of non-domestic rates which supports businesses and communities.
“It is important that everyone pays their share and these regulations will help tackle those who seek to find loopholes to avoid payment.
“We want to ensure that parts of properties used for reverse vending machines are not liable to pay rates.
“Subject to the regulations passing in the Scottish Parliament, we will work to ensure Scotland’s non-domestic rates system remains progressive and in line with our net zero ambitions.”
The Non-Domestic Rates (Miscellaneous Anti-Avoidance Measures) Regulations 2023 aim to deliver on a commitment in the Bute House Agreement to help local authorities tackle tax avoidance tactics, including when they make decisions on applying empty property relief and charity relief.
The Non-Domestic Rating (Valuation of Sites of Reverse Vending Machines) Regulations 2023 should ensure the part of a non-domestic property used solely in the provision or use of a reverse vending machine, is not liable for rates.
The latest budget announced the lowest poundage in the UK for the fifth year in a row and a package of reliefs worth an estimated £744m.
Draft regulations are laid in order to be considered by Parliament before they are signed into law. These new regulations should come into force in Scotland on 1 April 2023.
Don't miss the latest headlines with our twice-daily newsletter - sign up here for free.
