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Seòmar agus comataidhean

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 6 November 2025
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Displaying 3464 contributions

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Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 12 May 2022

Richard Leonard

My final question is on a much more mundane and less exciting issue, but one that is very important to us: the service level agreement between the Scottish Government and HMRC. You will have seen that, in the evidence session on 3 February, we explored with Gareth Davies and Stephen Boyle how the agreement currently works and whether it could be improved. I suppose that my question is really about what consideration has been given to the existing terms of the service level agreement and whether it can be improved and cover things such as the tax gap in Scotland, for example.

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 12 May 2022

Richard Leonard

You can comment without prejudice, if you like, Jonathan.

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 12 May 2022

Richard Leonard

One of our questions and interests is whether it is the case that the data does not exist or is impenetrable, or whether we could get the wider data set that we think is necessary if the Scottish Government paid more than £700,000 a year for it.

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 12 May 2022

Richard Leonard

In our previous session on the issue, Colin Beattie went into some detail on one aspect of the report, and he is keen to get back into that level of detail on that aspect, so I invite him to put some questions.

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 12 May 2022

Richard Leonard

Could you tell us when you will officially respond to that Public Accounts Committee report?

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 12 May 2022

Richard Leonard

I am not trying to trip anybody up, but are you saying that you do not think that the Scottish Fiscal Commission uses that estimate, but you use it as a reference point?

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 12 May 2022

Richard Leonard

Okay. We might return to that before we finish.

My next question is for Jonathan Athow. The Audit Scotland report that accompanies the NAO report made a point about good governance and assurance arrangements and the need to keep those under continual review. It said that the process should include

“ongoing consideration of the frequency of third-party data checks and Service Level Agreement performance measures, such as setting compliance target levels for Scottish taxpayers without ‘S’ prefixes.”

Why has HMRC still not introduced a target in relation to the number of missing S prefixes? Will it do so at some point in the future?

Public Audit Committee

Section 22 Report: “The 2020/21 audit of South Lanarkshire College”

Meeting date: 12 May 2022

Richard Leonard

I welcome Graham Simpson, who is an MSP for Central Scotland and who joins us for item 2, which is consideration of the 2020-21 audit of South Lanarkshire College.

I am pleased to welcome the Auditor General for Scotland, Stephen Boyle, to give evidence to the committee. We are also joined by Rebecca Seidel, who is a performance audit and best value manager at Audit Scotland, and by Lucy Nutley, who is a director at Mazars and who I think carried out the audit on the ground at the college.

I invite the Auditor General to give us a short opening statement.

Public Audit Committee

Section 22 Report: “The 2020/21 audit of South Lanarkshire College”

Meeting date: 12 May 2022

Richard Leonard

We will need to consider what point is the right juncture to bring in the accountable officers, if that is the route that we decide to go down. I will bring in Willie Coffey at this point.

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 12 May 2022

Richard Leonard

Thank you for setting out that introductory framework. I am sure that you will have read the evidence that the committee took on 3 February. We were particularly exercised by the fact that we are in years 4 and 5 of a distinctive Scottish income tax system but there appear to be what, in our eyes, look like significant gaps in the data that is available and in the evidence that we think is necessary to allow Parliament and the Government to make informed decisions and choices about income tax policy in Scotland.

We are particularly interested in the level of compliance activity that is Scotland specific, in whether there is sufficient—or any—data on the tax gap in Scotland, and in the extent to which the information can be interrogated and analysed, which we think is extremely important in fashioning the evidence upon which we can build a sustainable and effective tax system.

You mentioned service level agreements, which we will return to. We are very pleased that the Scottish exchequer and HMRC are here as parties to that agreement, because we will want to explore that in our questions.

I call the deputy convener, Sharon Dowey, to open the questioning.