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Chamber and committees

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 11 September 2025
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Displaying 2603 contributions

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Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Colin Beattie

With regard to paragraph 12 on page 8 of the report, I find it astonishing that taxpayers do not have to bother with advising a change of address. I realise that this is not within your powers, but how can the system possibly be robust if people can just change address willy-nilly and vanish?.

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Colin Beattie

So it is a notional figure. What is its purpose?

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Colin Beattie

Surely it indicates that there is a flaw in the process.

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Colin Beattie

Given that the problem has been happening every year since the system was instituted, it must endemic to it.

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Colin Beattie

I turn to one or two specific issues. Paragraph 1.2 on page 10 says:

“HMRC calculates the final outturn figure from several components”,

but it does not actually mention what those components are. I do not know whether explaining them will require a lengthy response. If it requires just a short one, that will be fine, but if not, you can perhaps drop us a note.

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Colin Beattie

That would be excellent.

Paragraph 1.5 on page 11 says:

“In some areas of the calculation, data are not available in sufficient detail to identify income tax liabilities, reliefs or other adjustments relating to individual taxpayers.”

Again, that will require making a huge estimate.

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Colin Beattie

But if it happens every year, there is clearly a flaw in the system.

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Colin Beattie

Does that 1 per cent equate to approximately the same as the UK figure?

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Colin Beattie

Mr Davies, I have been involved with public audit committees since the Scottish rate of income tax was introduced several years ago. I want to begin with a very simple question, and then I will focus more on the actual report.

One of the things that jumps out of the report is the 70 per cent increase in the number of missing Scottish postcodes. It still represents a small proportion of the taxpayer population, but if it includes large numbers of high-net-worth individuals, it could have a significant effect on the tax collected. What is behind that increase? What is driving the error?

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Colin Beattie

I refer back to our previous discussion. There are four bullet points in paragraph 1.23 on page 17 of the report that I find very telling in terms of the robustness of the figures around Scottish income tax. To me, they clearly indicate that there is a real problem in calculating the figures.

We talked about the notional £800 million figure. Bullet point 3 says that the figures that are being used

“do not exclude tax from savings and dividend income”.

You cannot possibly get something accurate out of those figures, because that is not an area within the Scottish Government’s tax authority.

Bullet point 2 refers to the “differing proportions” of types of taxpayers north and south of the border. The figures are completely distorted, because London, for example, is massively overrepresented in terms of the top income tax payers. We do not have that situation in Scotland. If we are using a methodology to calculate the figures that does not account for that incredible difference, how can the figures possibly be accurate?