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Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 4 May 2021
  6. Current session: 13 May 2021 to 4 November 2025
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Displaying 982 contributions

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Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Craig Hoy

Mr Davies, in your opening remarks—or perhaps just after—you said that there was no reason to predict that the levels of income tax debt attributable to Scotland would be any different from those in the rest of the UK. How could you come to that conclusion if no substantive analysis has been conducted?

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Craig Hoy

Good morning. The report examines the impact of Covid-19 on HMRC compliance activities. It says:

“COVID-19 has continued to have an impact on HMRC’s compliance and debt management activities. Across the UK, there were 29% fewer civil compliance cases opened and 26% fewer cases closed in 2020-21 than in 2019-20”.

Can you give us a snapshot of why that is? Is it because internal processes in HMRC have been impacted by Covid—for example, due to people working from home, which means that there is less capacity—or is it because the outside world has become more complex because of the pandemic?

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Craig Hoy

People who struggled to pay tax during that period are now paying their present tax and have therefore almost forgotten about that period, which may impede the recovery of that tax. Do you have a concern that, in capacity terms, HMRC will be so busy in its forward-looking work that it may end up not fully delving into that period retrospectively?

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Craig Hoy

We talked about a separate analysis of Scottish compliance and how the effort and cost would perhaps be too great to do that. Do you have any insight as to whether there are plans to make available an analysis of Scottish income tax debt? Is such work being undertaken, and would the Scottish Government, HMRC or yourselves benefit from that?

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Craig Hoy

Would you expect there to be an upscaling of those activities on compliance and debt management as we come out of the pandemic?

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Craig Hoy

I will ask one quick question of Mr Boyle. In your report, you note that further analysis of taxpayer behaviour

“along with the relative success of compliance activity in Scotland and the Scotland-specific tax gap”

would help the Scottish Government to

“assess whether any Scottish income tax compliance risks are emerging”.

Do you have any concept of, and will you elaborate on, what those risks might be and their potential scale?

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Craig Hoy

The risk might be someone buying a bolthole in Berwick-upon-Tweed and registering themselves there while working in Edinburgh, for example.

Public Audit Committee

Section 22 Report: “The 2020/21 audit of the Commissioner for Ethical Standards in Public Life in Scotland”

Meeting date: 27 January 2022

Craig Hoy

Paragraph 17 of the section 22 report refers to the acting commissioner’s assessment that

“staff were not equipped fully to fulfil the Office’s statutory functions.”

The external auditors therefore recommended in their annual audit report that a formal training programme and workforce planning arrangements should be put in place. In light of that, can you confirm whether a skills gap exists in the organisation and, if so, in which specific areas?

Public Audit Committee

Section 22 Report: “The 2020/21 audit of the Commissioner for Ethical Standards in Public Life in Scotland”

Meeting date: 27 January 2022

Craig Hoy

I go back to the size of the organisation. I will not fall back on my rusty Latin to make the point, but I am thinking of an old episode of “Yes Minister” in which Sir Humphrey Appleby explains to the minister the full structure of permanent secretaries and undersecretaries and the full complexity of Government. The minister asks, “Do they all type?” and Sir Humphrey answers, “No. Mrs McKay is the typist.”

Considering the complexity that the organisation deals with and the fact that only one individual has experience of MSP complaints, is there a concern that it is not properly resourced to do its job, and would vacancies have a significant negative impact? Should we be looking longer term at the resource that the corporate body provides to the organisation?

Public Audit Committee

Section 22 Report: “The 2020/21 audit of the Commissioner for Ethical Standards in Public Life in Scotland”

Meeting date: 27 January 2022

Craig Hoy

To delve a little bit deeper on leadership and governance, paragraph 9 on page 4 of the section 22 report highlights that the acting accountable officer of the commissioner’s office concludes that she is

“not satisfied that an effective scheme of governance operated during 2020/21.”

The external auditor also concludes in the annual audit report that the governance and scrutiny arrangements were ineffective during that period and that they are not currently sufficient to deliver best value.

Noting those very serious issues in relation to leadership and governance, to what extent is the 2020-21 picture different from the assessment that was made in the prior reporting period?