Air Departure Tax Highlands and Islands Exemption: business and regulatory impact assessment

Section 4: Additional Enforcement and Compliance considerations

4. Business and Regulator Enforcement and compliance considerations

Revenue Scotland has statutory powers in relation to the collection and management of ADT. The Revenue Scotland and Tax Powers Act 2014 (RSTPA 2014) provides for Revenue Scotland’s general functions.

The RSTPA 2014, and secondary legislation made under that Act, set out the tax administration framework that underpins all devolved taxes in Scotland, along with the powers and duties of taxpayers and of Revenue Scotland. The RSTPA 2014 and, where relevant, the applicable secondary legislation made under that Act, also outline the investigatory powers of Revenue Scotland, the process for issuing penalties in respect of non-compliant behaviour and the provisions for debt enforcement.

In addition, the Scottish Tax Tribunals are in place to hear appeals against appealable decisions made by Revenue Scotland related to the fully devolved taxes.

Revenue Scotland's compliance and enforcement powers are broadly in line with those used to administer existing self-assessed devolved taxes, such as Land and Buildings Transaction Tax, Scottish Landfill Tax and Scottish Aggregates Tax.

4.1 Commencement Considerations

The ADT Highlands and Islands exemption will come into effect on 1 April 2027 alongside ADT coming into operation in Scotland. Airlines and other aircraft operators will be able to report the exemption when filing ADT tax returns with Revenue Scotland in respect of flights departing from Scottish airports from 1 April 2027 onwards.