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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 14 September 2025
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Displaying 3314 contributions

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Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Richard Leonard

Thank you. Both PAYE receipts and self-assessment receipts have grown, according to the figures that are presented in the report. Is that correct?

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Richard Leonard

Thanks, Mr Davies. We will look forward to that.

One of the things that is concerning this committee a little bit is the extent to which we are still reliant on estimates, samples and assumptions rather than hard data. The system of a Scottish income tax arrangement has been in place now for three years; why is it that we are still so reliant on estimates, samples and assumptions rather than being able to rely on three years’ worth of Scottish income tax outturn information? I will ask Mr Davies to answer that first and I will come to Stephen Boyle second.

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Richard Leonard

I believe that you raised this issue in your commentary on the NAO report, Mr Boyle, so perhaps you can give us your views on it.

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Richard Leonard

Can you just confirm that you have no evidence of flight of income tax payers from Scotland to England, Auditor General?

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Richard Leonard

Thank you.

I would like to capture the essence of what we have been saying today. I say to Gareth Davies and Darren Stewart that our approach today has not been pointed at you; we have taken that approach because we are trying to understand where there are gaps and where improvements could be made.

We reflect that this is year 4 or 5 of the distinctive Scottish income tax system, and yet, even at this stage, we do not have Scotland-specific tax gap data—that is, data about the amount that should be paid versus what is actually paid. Further, we do not have Scotland-specific data on compliance and non-compliance or on income tax debt, all of which we have been probing this morning. You are right to say that the reasons relate to the service-level agreement that is in place between the Scottish Government and HMRC, and we need to consider whether it would be useful for us to explore that avenue further.

In previous years—and, to a limited extent, today as well—we have been told that the issue is all about HMRC’s limited resources. If the service-level agreement were adjusted, would it be possible to get that data disaggregated to a Scottish level, so that it could be used to inform the decisions that this Parliament needs to make around income tax rates as well as to give us an understanding of the revenues that would be generated by the rates that are set?

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Richard Leonard

Just to be clear, the report says that the £0.7 million administration fee is

“accurate and fair in the context of the agreement between HMRC and the Scottish Government.”

Could you tell us what you mean by “fair”?

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Richard Leonard

On that note, we will conclude the session. I thank Stephen Boyle, the Auditor General, who joined us in person at our meeting today, and Mark Taylor, who was on hand to answer any questions that we had for him—in the event, I do not think that he was called on, but I thank him anyway.

I give particular thanks to Gareth Davies and Darren Stewart from the NAO. As I said at the beginning, we hope to see them in person at some point in the not-too-distant future, because that would help us in examining the important role that they play in keeping account of how HMRC is functioning in this area, which is of particular concern and importance to us.

10:15 Meeting continued in private until 11:00.  

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Richard Leonard

We have a little bit of time in hand before we wind up, and Colin Beattie wants to come back in with a couple more questions on the cost of administering the Scottish income tax system.

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

Richard Leonard

Thank you very much indeed. Sharon Dowey has a series of questions to ask.

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

Richard Leonard

So nothing has been finalised yet.

There is a section on whistleblowing in the report. I want to get this right: that refers to whistleblowing for employees of the organisation, not whistleblowers who have a part to play in complaints that come to the organisation. I am sure that there is a Latin equivalent of this. Given that I presume that the organisation deals, from time to time, with complaints by people who are covered by the public interest disclosure legislation—people who are whistleblowers—that begs the question why there is not, within an organisation that looks at those matters, an effective whistleblowing policy. A recommendation has been made that that needs to be addressed. Where are we with that?

11:00