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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 17 January 2026
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Displaying 2875 contributions

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Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 12 May 2022

Colin Beattie

I have a couple of specific questions. After the previous meeting, I looked at the National Audit Office report and extracted from it just an A4 page—it could have been more, but I kept to the main points—setting out the references to estimates, information not being available, projections and all sorts of other things. If we take each issue individually, perhaps they are explainable but, if we take them in aggregate, surely the impact on Scottish income tax is significant.

I do not know whether you have done a crude exercise such as the one that I have done, but it seems to me that, taking the issues in the round, there must be concerns about the accuracy of the income tax take, which obviously has huge implications for the Scottish Government and for HMRC. In a general sense, how are you going to deal with all those issues? Are we going to get away from all the estimates and the fact that we cannot identify individual figures and so forth? Maybe that is for Jackie McGeehan.

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 12 May 2022

Colin Beattie

Is it not a yes or no answer?

Public Audit Committee

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

Meeting date: 12 May 2022

Colin Beattie

Auditor General, I want to fully get my head round the different investigations that are going on. I understand that the SFC started a governance review in July 2021, which it delivered in August 2021—in other words, it did so extremely quickly. Do we know what the terms of that investigation were?

At the extraordinary board meeting on 30 November 2021, it was agreed to commission two independent investigations. I assume that one of those was on the chair of the board, with the other being on the principal and the interim clerk. It is now May 2022. How did the SFC manage to do its governance review in four weeks, while, months after the other investigations were commissioned, nothing has come out the other end?

Public Audit Committee

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

Meeting date: 12 May 2022

Colin Beattie

So you are satisfied that what we can see visibly as the impact of the poor governance is manifested in your report.

Public Audit Committee

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

Meeting date: 12 May 2022

Colin Beattie

Okay.

I have one final question. Obviously, we do not have the results of the independent investigations and you cannot comment on the conclusions of those. Will you be able to give us more comment once the investigations have been completed? Will you come back to the issue?

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 12 May 2022

Colin Beattie

There are an awful lot of estimates.

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 12 May 2022

Colin Beattie

I just wanted to be sure that we are on the same page.

You have not said what is behind the increase.

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 12 May 2022

Colin Beattie

Given that there is devolution across the different nations, you would expect that some effective work would be taking place so that individual figures could be given for individual nations.

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 12 May 2022

Colin Beattie

I remain of the opinion that the aggregate totals for all the estimates, workarounds and so on must be significant, which is a concern.

I will move on to the specific issue of missing Scottish postcodes, which you have touched on. My concern is that the number had increased from 13,708 to 23,351 when the NAO last reported. That is a 70 per cent increase, although the point has been made that the figure represents something like 1 per cent of the population. However, the concern is that those missing taxpayers can equate to a fairly large sum of money in tax, especially if they turn out to be individuals with a high net worth.

I have three questions. What is behind the increase in the number of missing Scottish postcodes? What is the impact on revenues likely to be? What is HMRC doing to fix the issue?

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 12 May 2022

Colin Beattie

You did not indicate the scale of any impact on revenue.