02.05.2014
A tougher stance on tax avoidance in Scotland has been welcomed by the Finance Committee in its Stage 1 report on the Revenue Scotland and Tax Powers Bill, published today.
The Committee has welcomed the Bill’s focus on tackling tax avoidance with the introduction of a general anti avoidance rule (GAAR). The GAAR will enable Revenue Scotland to counteract avoidance with the use of tests to determine whether tax arrangements are “artificial”.
Finance Committee Convener Kenneth Gibson MSP said:
“The fact is that there are negative repercussions for all of us when people don’t pay their taxes. The Bill will ensure that Scotland takes a robust approach to tackling tax avoidance and provides greater certainty for Scottish taxpayers.
“We will also continue to closely monitor the establishment of Revenue Scotland and the implementation and delivery of devolved taxes.”
The Finance Committee supports the general principles of the Bill at Stage 1. The report also—
- Recognises the need for additional protection for taxpayers and recommends that Revenue Scotland is required to consult widely on the application of the GAAR prior to publication of guidance.
- Recommends the introduction of a rule to give the GAAR priority over other legislative measures.
- Welcomes the requirement for Revenue Scotland to prepare a Charter which will set out the standards of behaviour and values for both Revenue Scotland and the taxpayer.
- Welcomes the Scottish Government’s commitment to bring forward amendments at Stage 2 to specify on the face of the Bill exact penalty amounts arising from non-compliance.
Background
The Revenue Scotland and Tax Powers Bill is the final of three pieces of legislation arising from the Scotland Act 2012. The two previous pieces of legislation, The Land and Buildings Transaction (Scotland) Act 2013 and the Landfill Tax (Scotland) Act 2014 were considered by the Finance Committee in 2012 and 2013.