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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 5 May 2021
  6. Current session: 12 May 2021 to 17 August 2025
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Displaying 1169 contributions

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Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 9 February 2023

Sharon Dowey

Good morning. HMRC uses the same systems to administer income tax whether a taxpayer is from Scotland or from elsewhere in the UK. However, it operates additional rules and procedures for Scotland, such as residency checks and the application of “S” tax codes if individuals are identified as Scottish taxpayers.

The NAO report states that, as has been the case in previous years, one of the main administrative challenges that is faced by HMRC is the maintenance of an accurate and complete record of Scottish taxpayer residency addresses. That is because HMRC relies on taxpayers to notify it of any change of address. What can be done to improve on that? Would a legal requirement to notify HMRC of address changes assist with that administrative challenge and with overall compliance?

Public Audit Committee

“Administration of Scottish income tax 2021/22”

Meeting date: 9 February 2023

Sharon Dowey

The most recent scan of taxpayer records to

“identify missing or invalid postcodes which would result in incorrect residency status being applied”

was in June 2021. It identified 25,488 missing or invalid postcodes, of which 3,031 were updated.

Reported postcodes, whether missing or invalid, represent 1 per cent of the 2.5 million total income tax population in 2020-21. A small number of missing taxpayers can potentially equate to a large amount of revenue, especially if that group contains high-net-worth individuals.

Has the NAO received an update from HMRC around the monitoring of that situation, and specifically on the causes of missing or invalid postcodes? What might the impact be on revenues, and what, if anything, is being done to address the matter?

Public Audit Committee

Section 22 Report: “The 2021/22 audit of the Crofting Commission”

Meeting date: 2 February 2023

Sharon Dowey

Some of my colleagues have questions on sustainability and keeping up the momentum.

There are an awful lot of recommendations over a short timescale. If, as we hope, things are successful, are there lessons to be learned and good practice that could be shared with others?

Public Audit Committee

Section 22 Report: “The 2021/22 audit of the Crofting Commission”

Meeting date: 2 February 2023

Sharon Dowey

Your report states that the auditor has assessed all 41 recommendations that were made in the 2020-21 audit report as being “fully implemented” by the commission. Of those recommendations, 34 were in relation to significant weaknesses in leadership and governance arrangements, as identified in last year’s audit. That is a lot of recommendations. Are you content that those significant issues have been adequately addressed in what seems to be quite a short period?

Public Audit Committee

Section 22 Report: “The 2021/22 audit of the Crofting Commission”

Meeting date: 2 February 2023

Sharon Dowey

The committee’s report on the 2020-21 audit of the Crofting Commission recommended that

“the Crofting Commission and the Scottish Government put plans in place to regularly review the revised framework document to ensure it remains fit for purpose.”

Do you know what plans—if any—are in place?

Public Audit Committee

Section 22 Report: “The 2021/22 audit of the Scottish Government Consolidated Accounts”

Meeting date: 19 January 2023

Sharon Dowey

Good morning. The report notes that the Scottish Government can borrow ÂŁ450 million per year, up to a cumulative total of ÂŁ3 billion, for capital spending. It then points out that capital borrowing in 2021-22 was ÂŁ150 million; it has been below the ÂŁ450 million threshold in each of the last four years. You also note that there is limited information on how capital borrowing is being used.

The Scottish Government can also borrow for resource spending, up to a maximum of ÂŁ300 million per year and up to a cumulative maximum of ÂŁ1,750 million.

Is the Scottish Government sufficiently transparent about its decisions to undertake both capital and resource borrowing?

Public Audit Committee

Section 22 Report: “The 2021/22 audit of the Scottish Government Consolidated Accounts”

Meeting date: 19 January 2023

Sharon Dowey

Okay. Thank you. I will move on to investment in private companies. Specifically, the paper mentions Prestwick airport, Ferguson Marine (Port Glasgow) Holdings Ltd, Burntisland Fabrications Ltd, or BiFab, and the Lochaber aluminium smelter. Starting with Prestwick airport, what are the financial implications for the Scottish Government of continued failure to find a buyer for it?

Public Audit Committee

Section 22 Report: “The 2021/22 audit of the Scottish Government Consolidated Accounts”

Meeting date: 19 January 2023

Sharon Dowey

What better information could be provided to support effective scrutiny of the use of capital borrowing powers and the specific projects that it supports?

Public Audit Committee

Section 22 Report: “The 2021/22 audit of the Scottish Government Consolidated Accounts”

Meeting date: 19 January 2023

Sharon Dowey

Do you have any concerns about the increasing level of repayment charges for the borrowing, and does the Scottish Government take any view on what is considered reasonable?

Public Audit Committee

Section 22 Report: “The 2021/22 audit of the Scottish Government Consolidated Accounts”

Meeting date: 19 January 2023

Sharon Dowey

That brings me to my last question. Is there sufficient transparency in the Scottish Government’s investment in private companies, including the rationale for investment and the reasons behind failed or rejected bids for subsequent sales of investments? How could transparency in that area be improved?