Scottish budget process needs improvement, tax body says

The Scottish Parliament should consider setting up a new parliamentary committee to scrutinise Scotland’s tax legislation, the Chartered Institute of Taxation said amid concerns about the quality of public debate and the impact of business incorporations on tax revenues.

The Parliament now has powers to raise and allocate revenue but needs to recognise constraints posed by the limited devolution of tax powers, CIOT noted in an April 27 submission to a budget process review group set up by the Parliament’s Finance and Constitution Committee … The quality of public understanding and engagement with the tax system is quite low, making it difficult to have a sensible public debate about possible options, CIOT argued.

While Scotland is being given devolved taxation powers, it is “not being given the data on which to make decisions,” Richard Murphy, tax campaigner and professor of practice in international political economy at City, University of London, told committee last month. Read more:

My news story for Tax Analysts, May 5 (paywall)

Scottish approach to taxation: FCC hearing, April 19