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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 5 November 2025
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Displaying 3443 contributions

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Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 9 February 2023

Richard Leonard

The Auditor General wants to come in on that point.

Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 9 February 2023

Richard Leonard

Thank you. There is a whole other area that we want to explore, which includes the tax gap and other data issues. Colin Beattie will lead on that.

Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 9 February 2023

Richard Leonard

Thank you. Obviously, the committee will consider what its next steps are on that, but there would be interest in understanding whether private debt collection agencies are now being deployed.

Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 9 February 2023

Richard Leonard

Auditor General, I want to touch on something in your report. In paragraph 42, which is in the section on taxpayer behaviour, you say:

“In my view, the publication of the income tax behavioural analysis and the development of a dataset to track taxpayer responses to income tax changes over time is a positive development.”

Can I check with you where that is? I have not seen anything published yet, but is there an expectation that something will be published later this year? Has work been commissioned to get that data set and put it into the public domain?

Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 9 February 2023

Richard Leonard

Sorry—I can look it up in your report. I think that there were four areas in which reference was made to methodology and you looked at what could be reasonably assessed. The report states that

“the use of sample data introduces sampling uncertainty”,

so the figures are based on samples. Paragraph 1.22 in your report has four bullet points. The second point is:

“the methodology combines the calculation of PAYE and Self Assessment liabilities.”

Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 9 February 2023

Richard Leonard

Thank you. Later this morning, we will go on to talking a little more about debt collection. For now, the deputy convener, Sharon Dowey, has some questions.

Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 9 February 2023

Richard Leonard

It goes back to our earlier conversation about the service level agreement and whether, if additional payment was made to HMRC, that could elicit, notwithstanding some of the methodological challenges, the kind of data that, it seems to us, would be fundamentally useful to have.

Before I bring in Willie Coffey, I raise the issue of debt collection, which, so far, has been mentioned only in the passing. Somebody mentioned the regular reporting to the Public Accounts Committee from HMRC, the NAO—of course—and other Government bodies. The UK Government’s response on the 48th report of session 2021-22 was a reflection on where things had got to with tax collection. It highlights:

“In addition, from September 2022, there will be a new contract through which HMRC places debt with private debt collection agencies (DCAs). This will allow HMRC to increase placements with DCAs by around £1 billion a year without increasing the cost to the Exchequer.”

Are those debt collection agencies doing that for free—given that it is said that there is no cost to the exchequer—or are they taking a percentage of everything that is collected, which is normally what happens in such situations? Are those agencies operational in Scotland? Are you aware of whether the Scottish Government has a view about the deployment of private debt collection agencies, and who are they, principally?

Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 9 February 2023

Richard Leonard

I have something to ask before we leave this theme altogether. Paragraph 2.32 of the NAO report says:

“The tax gap is the difference between the amount of tax that should be paid and what is actually paid.”

The report goes on to say that HMRC

“does not currently produce a Scotland-specific tax gap”

and

“has limited information on total compliance activity undertaken in Scotland.”

Do the Auditor General for Scotland and the Comptroller and Auditor General at the NAO have a view on whether it would be useful to have specific Scottish tax gap data?

Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 9 February 2023

Richard Leonard

On that note of great clarity, I will draw this morning’s evidence session to a close. I thank our witnesses. The evidence session has been very useful, and it provides us with a platform on which we will build.

I move the meeting into private session.

10:20 Meeting continued in private until 10:49.  

Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 9 February 2023

Richard Leonard

Thank you very much. I invite Gareth Davies, the Comptroller and Auditor General from the NAO, to make a short opening statement, after which we will move to questions.