Scotland update – independent Commission for Competitive and Fair Taxation in Scotland

The CIOT has made a submission in response to the call for evidence issued by the Commission for Competitive and Fair Taxation in Scotland, which was set up by Ruth Davidson, the leader of the Scottish Conservatives, but is independent from the party. The commission is examining existing and new taxation powers in Scotland. It has a few aims for the taxation system, which it will need to balance: to promote Scotland’s economy and competitiveness; to ensure strong and sustainable public services; and to be fair to the taxpayer. It intends to report back before the Scottish parliamentary elections in 2016.

Many of the questions the commission posed concerned policy matters, on which the CIOT offered no comment, instead focusing on key principles and practical issues. In particular the CIOT drew attention to the importance of Adam Smith’s four principles, adding to them simplicity, stability and consultation. The response also noted that a key consideration for a taxation system must be administration, collection and other practicalities. The CIOT stressed the importance of taking a holistic approach to taxation, National Insurance contributions, tax credits and welfare benefits.

The commission asked about some areas on which the CIOT has recently made submissions – in those cases we provided the commission with a copy of the relevant response document.

For example, we provided the commission with our response to the Commission on Local Tax Reform, which is now considering alternatives to council tax in Scotland.

The CIOT submission is available on the CIOT website.