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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 7 February 2026
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Displaying 3715 contributions

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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.

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 12 May 2022

Richard Leonard

Okay—thank you. I am conscious of the time.

We have mentioned in passing the impact of the pandemic. Willie Coffey has a series of questions to ask on that.

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 12 May 2022

Richard Leonard

Finally, do you have a timeframe for when you expect your discussions and negotiations on the service level agreement to be concluded?

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 12 May 2022

Richard Leonard

You think that they will be concluded by September.

Public Audit Committee

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

Meeting date: 12 May 2022

Richard Leonard

You outline in the report not just one but a number of headings under which there was a failure to comply with the code of good governance. We have gone through a few of them. The induction of new board members, which Craig Hoy just spoke about, is one example. Another example, which is quite worrying for us as the Public Audit Committee of the Scottish Parliament, is the failure to appoint internal auditors. The existing provider’s contract expired on 31 July 2021 and the appointment of a new provider was not confirmed until November 2021, so there was no internal audit function at South Lanarkshire College for three months. Will you explain why that was and what impact it had?

Public Audit Committee

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

Meeting date: 12 May 2022

Richard Leonard

In those circumstances, would it not have been expedient to roll over the contract of the existing provider until the procurement deal could have been ratified at the appropriate level in the college governance structure? There must surely have been an alternative to a gap with no internal audit facility whatsoever.

Public Audit Committee

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

Meeting date: 12 May 2022

Richard Leonard

That is helpful. I do not wish to labour the point, but for the benefit of people who are watching the meeting and people who have an interest in the good governance and working, and the success of, South Lanarkshire College, will you explain in layperson’s terms what the implication is, or what the risks are, of there being no internal audit function for three months?

Public Audit Committee

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

Meeting date: 12 May 2022

Richard Leonard

That is reassuring.

I will bring in Graham Simpson, whom I am delighted to welcome to the committee this morning.

Public Audit Committee

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

Meeting date: 12 May 2022

Richard Leonard

Colin Beattie has some questions in an area that the committee is very interested in.

Public Audit Committee

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

Meeting date: 12 May 2022

Richard Leonard

Lucy Nutley, you said that the same law firm is carrying out the two independent investigations with separate teams. How does that work? Is there a Chinese wall between them, or does it not matter that the two investigating teams are from the same firm? Is it intended that they all come together?