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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

Section 22 Report: “The 2020/21 audit of Scottish Government Consolidated Accounts”

Meeting date: 24 February 2022

Colin Beattie

First, I want to go back to the intervention that I made earlier about the smelter, just for clarification in my mind. You are relying on a 2019 book value to cover the Scottish Government’s potential liability. Book value is not necessarily market value and it is certainly not forced sale value. Normally, as a matter of prudence, when the Scottish Government is in the position of a lender and, if you like, a guarantor, it would look at forced sale value to ensure that, in the worst case, it would be covered. Has that forced sale value been calculated? If so, does it still cover the potential liability of the Scottish Government?

Public Audit Committee

Section 22 Report: “The 2020/21 audit of Scottish Government Consolidated Accounts”

Meeting date: 24 February 2022

Colin Beattie

Okay. I was taking the book value as the book value, but you are saying that there is a bit more behind it. Nevertheless, the important thing is the forced sale value, to ensure that we have cover.

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Colin Beattie

The convener has already highlighted the multiplicity of references to estimates in the report. That is not terribly encouraging when we are trying to plan expenditure against the income that we are likely to get from taxation.

When the Scottish rate of income tax system came in, the first year or two were a bit of a shambles, to be honest, but we kind of expected that. However, it disappoints me that I do not see improvements or the elimination of recurrent problems since then. As the system refines itself and HMRC identifies the weak points and variables in the system, I would have thought that HMRC would work to eliminate those anomalies. I do not see that happening—I see the same stuff again and again. You might think that it is still relatively early years, but I would have hoped that some of those anomalies would have been eliminated by now.

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Colin Beattie

Do we have any idea at all of the impact on the actual revenues that are being collected?

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Colin Beattie

So you are satisfied that HMRC is taking steps to deal with the issue.

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Colin Beattie

You think so. Do we know whether the problem will recur?

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Colin Beattie

I could go on, convener, but I am conscious that other members have questions. Perhaps I can come in later, if there is time.

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Colin Beattie

How do you account for that?

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Colin Beattie

I accept the point, but I am trying to highlight issues with regard to uncertainties around the figures that are being produced.

Flicking through your report, which was an excellent bedtime read, I note that in paragraph 2.13 on page 21 you say:

“HMRC confirmed the residency status for 92% of Scottish and Welsh pension scheme members ... and provisionally estimates that 94% have been confirmed following the 2020-21 tax year.”

That percentage does not seem high—in fact, it seems quite low. You would think that pension scheme members would be easy to pick up.

Public Audit Committee

“Administration of Scottish income tax 2020/21”

Meeting date: 3 February 2022

Colin Beattie

It is known that, in Scotland, a higher proportion of people give to charity than is the case in the rest of the UK. On that point, I note that paragraph 2.14 on page 22 says:

“HMRC does not have systems in place to establish the residency of taxpayers donating to charity”.

All those anomalies add up. You might say that each one has a small impact but, when you look at them in aggregate, it starts to become a concern.