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Displaying 3032 contributions
Public Audit Committee
Meeting date: 19 February 2025
Colin Beattie
Over a number of years now, I have repeatedly brought up my concerns about the figures that are behind the tax collecting. Gareth Davies mentioned working on some aspects of this, but consistently, right across the board, there seem to be an awful lot of assumptions and estimates and so on made and it is quite difficult to see how they would result in an accurate figure. Just to remind you, the service level agreement states:
“HMRC will identify the Scottish taxpayer population and collect from it the correct rates of SIT to ensure the Scottish Government receives the correct amount of income tax revenue each year.”
There are lots of other clauses on the same thing, but to me it all rotates around the key word, “correct”. I will take a high-level look at the issue and go through a few of the points of concern that I have picked out. I would be interested in your comments. It is not that making an estimate or an assumption is wrong; it is the sheer number of them. On occasion, you make an assumption based on an estimate, which to me must multiply the divergence and the inaccuracy of that figure. For example, in paragraph 12 of your report you say that HMRC successfully matched 72.9 per cent of address records. What is the equivalent figure south of the border?
Public Audit Committee
Meeting date: 19 February 2025
Colin Beattie
So you have no idea?
Public Audit Committee
Meeting date: 19 February 2025
Colin Beattie
You mentioned one aspect there, which is the behavioural changes, but there must be a process already in place across the UK to assess the behavioural change that any taxation increase or decrease might have.
Public Audit Committee
Meeting date: 19 February 2025
Colin Beattie
Has there been an assessment of that?
Public Audit Committee
Meeting date: 19 February 2025
Colin Beattie
Correct.
Public Audit Committee
Meeting date: 19 February 2025
Colin Beattie
What does that mean?
Public Audit Committee
Meeting date: 19 February 2025
Colin Beattie
What you are saying, in effect, is that the Scottish Government’s action of not approving the expenses triggered the section 22 report.
Public Audit Committee
Meeting date: 19 February 2025
Colin Beattie
Why did you not retrospectively approve the expenses? In other areas that the committee has looked at, there has been retrospective approval of expenses, but, in this particular case, the decision was taken not to approve them.
Public Audit Committee
Meeting date: 19 February 2025
Colin Beattie
Okay. I will move on to a slightly different point. In response to a question from the convener, I think, David Satti talked about the audit and risk committee and the board approving the removal of limits per head for reclaiming expenses. If I remember correctly, that happened in January 2023, and it was for a trial period. First, how long was the trial period intended to be? Secondly, I did not understand the reference to oil prices and so on driving the change. That does not seem to be a reason.
Public Audit Committee
Meeting date: 19 February 2025
Colin Beattie
There is no real analysis of why. Those are significant movements within the broad bands. You would hope that HMRC would be providing some data as to how that has arisen, what the consequences are and where we are going with this. There is nothing behind it.