The Scotland Act 2012, which received Royal Assent in May 2012, devolves a number of new taxation powers to the Scottish Parliament, including the provision to set a new Scottish rate of income tax (SRIT). These new provisions would broaden the public audit landscape in Scotland to include areas such as tax collection. The Committee has agreed to consider the audit and accountability arrangements for SRIT.
The Committee has also agreed to consider the audit arrangements relating to each of the following Scottish Government bills. Click on the bills, below, to see what action has been taken.
Interim and Final reports on the framework for auditing the Scottish rate of income tax
In relation to SRIT, the Committee considered written submissions and took oral evidence from November 2012 until March 2014. The Committee also published an interim report (in April 2013) and a final report (in March 2014) setting out its views on the framework for auditing the SRIT.
The Committee has also responded to the Scottish Government on its memorandum of understanding with HMRC.
Draft amendment to the UK Finance Bill 2014
In January 2014, the Committee also provided its views to HMRC on the draft amendment proposed to the UK Finance Bill 2014. This amendment proposes that the National Audit Office lays in the Scottish Parliament an annual report on HMRC's administration and collection of SRIT.
Read the draft amendment (169KB pdf)
Read the Public Audit Committee response to HMRC, dated 29 January 2014 (81KB pdf)
Read HMRC response to the Public Audit Committee, dated 25 March 2014 (67KB pdf)
1st Report, 2014 (Session 4): Framework for auditing the Scottish rate of income tax published on 10 March 2014
At its meeting on 11 June 2014, the Committee considered its approach to correspondence received by the HM Revenue and Scotland, the National Audit Office, the Scottish Government and the Auditor General for Scotland to the above report. The Committee also agreed to write to the Scottish Government on issues raised during its discussion.
Responses to the 1st Report (Session 4) 2014
2nd Report, 2013 (Session 4): Interim framework for auditing the Scottish rate of income tax published on 25 April 2013
On November 21 and 22 2012, the Committee began its consideration of the audit arrangements for SRIT and also considered and reported its views on the Memorandum of Understanding between the Scottish Government and HMRC in relation to SRIT.
Memorandum of Understanding
Greater Transparency Required on Scottish Income Tax