Guidance on Definition and Handling of Business Documents in RSTPA Context

Revenue Scotland investigatory powers: what counts as a business document

For Revenue Scotland’s investigation powers, a document is only a “business document” if it both relates to carrying on a business and forms part of someone’s statutory records. If it meets both tests, Revenue Scotland may inspect it and can also copy it, take extracts, or remove it as if it had been required under an information notice.

• The definition is specific to Revenue Scotland’s compliance and information-gathering powers, not a general tax definition.
• Both conditions must be met: the document must relate to a business and be part of statutory records.
• A document can qualify even if it relates to another person’s business, not just the taxpayer’s own business.
• Business-related material that is not part of statutory records, such as informal notes, will not usually qualify.
• If a document does qualify, Revenue Scotland may do more than inspect it: it may copy it, extract information from it, or remove it.
• In practice, the hardest question is often whether the document is part of statutory records, which depends on the legal record-keeping rules that apply.

Scroll down for the full analysis.

Revenue Scotland investigatory powers: what counts as a “business document”

This page explains what Revenue Scotland means by a “business document” for its investigatory powers under the Revenue Scotland and Tax Powers Act 2014. The point matters because if a document falls within this definition, Revenue Scotland may inspect it and may also copy it, take extracts from it, or remove it in the same way as if it had been required under an information notice.

What this rule is about

The source material deals with a specific definition used in Revenue Scotland’s compliance and information-gathering powers. It is not a general definition for all tax purposes. The question is whether a particular document is a “business document” for these powers.

The definition is narrow in one sense and broad in another. It is narrow because two separate conditions must both be satisfied. It is broad because the document can relate to the business of any person, not only the person being investigated.

What the official source says

According to Revenue Scotland’s guidance on section 141 of the Revenue Scotland and Tax Powers Act 2014, a document is a “business document” only if both of the following are true:

• it relates to the carrying on of a business by any person; and
• it forms part of any person’s statutory records.

Both conditions must be met. A document is not a “business document” just because it concerns a business. It must also be part of statutory records. Equally, being part of statutory records is not enough if the document does not relate to the carrying on of a business.

The guidance also states that where Revenue Scotland inspects such a document, it may:

• take a copy of it;
• make an extract from it; or
• remove it,

to the same extent as if the document had been requested under an information notice.

What this means in practice

The practical effect is that not every business-related paper or file will automatically fall within this category. The document must be tied to statutory record-keeping obligations as well as to the carrying on of a business.

This matters when considering the scope of an inspection. If a document meets the definition, Revenue Scotland’s powers over it are wider than simple viewing. It may copy the document, extract relevant material, or remove it, subject to the same extent of power that would apply under an information notice.

For taxpayers and advisers, the key practical question is not simply “does this relate to business?” but also “is this part of statutory records?” That second question may exclude material that is commercially relevant but not actually part of the records a person is required by law to keep.

The wording “by any person” is also important. The business does not need to be the taxpayer’s own business. A document can still fall within the definition if it relates to another person’s business and forms part of statutory records.

How to analyse it

A sensible way to approach the issue is to ask these questions in order:

• What is the document?
• Does it relate to the carrying on of a business?
• Whose business does it relate to? The legislation does not limit this to the taxpayer’s own business.
• Is the document part of statutory records?
• Are both conditions satisfied at the same time?

If the answer to either of the two core conditions is no, the document is not a “business document” for this purpose.

It is also worth separating three different issues:

• whether Revenue Scotland may inspect the document at all;
• whether the document falls within the specific definition of “business document”; and
• what Revenue Scotland may then do with it, such as copying, extracting, or removing it.

The source material addresses the definition and the consequences of inspection. It does not say that every inspected document is a business document.

Example

Illustration: a trader keeps sales ledgers and accounting records that the law requires the trader to retain. Those records relate to the carrying on of the trader’s business and are part of statutory records. On the face of the definition, they are likely to be “business documents”.

By contrast, an informal internal note discussing possible future business ideas may relate to a business in a broad sense, but if it is not part of statutory records, it would not meet the full definition on the wording given here.

Why this can be difficult in practice

The difficult part is often the second condition: whether the document is part of “statutory records”. The source page cross-refers to separate guidance on that expression, and the answer may depend on the legal record-keeping duties that apply in the particular context.

There can also be judgement involved in deciding whether a document truly “relates to the carrying on of a business”. Some documents are obviously part of day-to-day trading records. Others may be more remote, mixed in purpose, or only indirectly connected with business activity.

The guidance is also brief. It states the test, but it does not provide a detailed list of included or excluded documents. In practice, that means classification may depend on the facts and on the underlying statutory record-keeping rules.

Key takeaways

• A document is a “business document” only if it both relates to the carrying on of a business and forms part of statutory records.
• Both conditions must be satisfied. Business relevance alone is not enough.
• If Revenue Scotland inspects a qualifying document, it may copy it, take extracts, or remove it to the same extent as under an information notice.

This page was last updated on 24 March 2026

Useful article? You may find it helpful to read the original guidance here: Guidance on Definition and Handling of Business Documents in RSTPA Context

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