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CIOT responds to Scotland tax framework consultation

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The CIOT and Low Incomes Tax Reform Group (LITRG) have published a response to the Scottish government’s consultation Tax policy and the Budget – a framework for tax.

Key points from the response include:

  • The publication of a framework for tax is welcome, particularly to communicate the functions, principles and policy objectives that underpin how tax changes in Scotland are assessed and delivered, but further work is required to explain the benefits of transparency – a core aim behind the framework.
  • The Scottish government’s sixth core principle of anti-avoidance appears narrow, focused on countering avoidance behaviour that has already happened. The CIOT suggests reframing this as a principle of ‘effectiveness’.
  • The fifth principle of engagement should extend to sharing information openly with stakeholders throughout the life of a tax. Clear updates on progress in relation to tax policy would be welcome, particularly where the taxes affect business decisions.
  • Future priorities for the devolved taxes should include resolving issues around land and buildings transaction tax group relief, reform of council tax before the end of the current Parliament, and examining potential tax policy options to assist with meeting Scotland’s 2045 net zero target.
Issue: 1552
Categories: News