There is concern about taxation levels and tax distribution in an independent Scotland.
Scots continue to be unclear about who is responsible for taxation north of the border.
It is evident that there is a desire for change to the current UK taxation system. This emphasises the need for the powers to be devolved to the Scottish Parliament. The Scottish government’s proposed changes to create a fairer taxation system, particularly the concept of incentivising corporate tax is welcomed.
The most likely overall outcome for taxation is that rUK would treat Scottish individuals and companies in the same way as it treats any other country's individuals and companies (and vice versa). Scotland will need to establish its own financial regulator and resolution authority and make arrangements for continuing the licences and supervision of Scottish firms. Arrangements for pension investments and payments will be required.
Argues for federalism in public funding where taxation is devolved. Proposes that this financial autonomy would provide a better connection between democracy and public finance.
The current UK tax system is not fit for purpose in Scotland. It is vital that during the transition period new systems for managing tax in Scotland be put in place. Taxes will need to be placed on a variety of sources and some of these will need extensive consideration. The tax and benefit systems must be integrated.
If Scotland were to become independent it would gain considerably more control over its tax system than it currently enjoys. This paper considers the consequences of independence for the optimal design of a new Scottish tax system, an analysis which would also be of some relevance for considering the consequences for tax design of independence of other smaller nations.
A conservative anslysis of prospects for taxation in an independent Scotland.
Commissioned by PCS, this joint work examines the economic impact of HMRC’s plans to close departments around Scotland and establish two regional offices in Glasgow and Edinburgh.
It is found that over 2,300 jobs could be lost due to these changes with an overall negative impact on GDP of £89 million.
The economic impact will be particularly magnified in local areas where the current HMRC departmental office employs a substantial proportion of the local workforce