Minister praises contribution of Scotland’s tax community

Following a two-year hiatus, close to 100 guests from across Scotland’s tax, accountancy, legal, media and political communities returned to Edinburgh’s Signet Library to hear Tom Arthur MSP outline his ambition to improve awareness and understanding of Scotland’s tax powers and set out the additional tax responsibilities that Scottish Ministers would like to see devolved to Holyrood when the way the Scottish Parliament is funded is reviewed later this year.

He also took the opportunity to congratulate CIOT and the South African Institute of Taxation (SAIT) on their recent agreement that will see the Chartered Tax Adviser status licenced to SAIT members, saying it would help “enrich the network of global tax practitioners”.

Arthur – who was appointed Minister for Public Finance, Planning and Community Wealth following the SNP’s Scottish Parliament election win in May 2021 – said that the expertise and advice offered by the tax profession had been integral in the development of Scotland’s first Framework for Tax.

He said that the document – published in December 2021 – highlighted the “shared interests and objectives” of government and the tax profession and would help to deliver a tax system that works for all.

Arthur also set out the areas of tax policy his government would like to see devolved to the Scottish Parliament as part of the upcoming fiscal framework review. These include full powers over income tax and National Insurance, as well the devolution of VAT. He acknowledged that their devolution may result in “new challenges and interactions” between the UK and Scottish tax systems but expressed hope that they could be made to work more effectively for Scotland and help to improve financial accountability.

Arthur expressed regret that levels of awareness and understanding of the devolved taxes were low, and suggested that more could be done to “move the dial”. He said he wanted the Scottish Government to become a leader in promoting better understanding of tax, telling the audience: “Not everyone in Scotland needs to be a tax specialist, but they do need to understand the taxes they pay and the public services they fund; and thus why it is so important to pay them.”

Putting tax into the school curriculum, developing public awareness campaigns and improving the quality of public debate around tax were all put forward as options for consideration.

Tom Arthur is the latest Scottish politician with an interest in tax to address the CIOT/ATT Joint Presidents’ Lunch following Kate Forbes (2019), Bruce Crawford (2017) and Lord (John) McFall of Alcluith (2013).

CIOT Deputy President Susan Ball (as she then was), who had introduced the minister, had earlier said how encouraging it was, in the early months of the new Scottish Parliament, to see politicians from across Scotland’s parties recognising the need for better public debate on tax.

“Constructive discussion and dialogue between the tax authorities, policy makers and professional bodies like ours leads to better policy decisions and a more effective tax system,” said Susan. “I think we can all agree that this is in the best interests of taxpayers, their advisers and the tax authorities.”

Thanking Tom Arthur for his remarks, ATT President Richard Todd said that both ATT and CIOT appreciate the open and consultative approach taken to tax in Scotland, “and we hope to be able to bring our knowledge, experience and expertise to bear on all parties looking to make Scotland’s tax system work as well as it should for all.” “We look forward to working with you and your office for years to come,” he added.

The ATT President then presented three outgoing committee members with certificates of appreciation in recognition of their invaluable support to ATT and CIOT in Scotland.

These were presented to:

• Alexander Garden for his service as Chair of the CIOT Scottish Technical Committee and, prior to that, of the Scotland Hub
• Sean Cockburn for his service as Chair of the Scotland Hub
• Alan Dean for his service as Treasurer of the Scotland Hub.