ICAS queries Scotland’s tax devolution in paper

by Calum Fuller

More from this author

09 May 2012

  • Comments
ICAS

THE CRITERIA for paying tax in Scotland once tax powers are devolved from Westminster to Holyrood has been questioned in a paper entitled Scotland's Future: What tax system would Scotland want? published by ICAS.

The Scotland Bill was given Royal assent at the start of May, with the legislation taking force in April 2016. The move will see powers to levy taxes fully devolved to Edinburgh.

In the report, ICAS also queries the implications of progressive and flat-based tax rates and who would run the system - currently believed to be HMRC - with concerns raised about Scotland's ability to manage such a significant undertaking.

"The Scottish Government has at present neither an established mechanism, nor the expertise or resources to respond alone to these questions", it says. "The reservation of tax powers to Westminster means it has to be questioned whether the Scottish Government has the full understanding of the complexities of the operation of a tax system to enable it to opine authoritatively on this topic."

There are also questions raised over what would qualify someone as a Scottish taxpayer. While it was announced that the definition of a Scottish taxpayer will be based on the location of an individual's main place of residence, with further clarification to follow from HMRC, there are still issues of which companies would be liable in Scotland. Specifically, the issues revolve around whether Scottish-incorporated businesses only, or companies with places of business in Scotland.

In a speech last month, Scottish first minister Alex Salmond admitted he supported lower corporation tax in Scotland, while last year he proposed the idea of a separate tax body to administer the collection of corporation tax north of the border.

Visitor comments

blog comments powered by Disqus
display:none

Add your comment

We won't publish your address


By submitting a comment you agree to abide by our Terms & Conditions

Your comment will be moderated before publication

Submit
  • Send

Newsletters

Get the latest financial news sent directly to your inbox

  • Best Practice
  • Business
  • Daily Newsletter
  • Essentials

Careers

Search for jobs
Click to search our database of all the latest accountancy roles

Create a profile
Click to set up your profile and let the best recruiters find you

Jobs by email
Sign up to receive regular updates with the latest roles suitable for you

Briefings

budget-management

Why budgeting fails: One management system is not enough

If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.

cchcover

iXBRL: Taking stock. Looking forward

In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.