Accountants Discuss Scottish Tax Powers
The Institute of Chartered Accountants Scotland (ICAS) has said that the issues involved in devolving further tax powers to Scotland are wide ranging and complex.
In a report prepared ahead of the first meeting of the Smith Commission on October 22, 2014, ICAS stressed that the design of any new taxes for Scotland should be based on sound principles, such as simplicity, neutrality, stability, and flexibility.
The Commission was set up by UK Prime Minister David Cameron in the wake of the Scottish independence referendum, in which Scottish taxpayers voted to stay part of the UK by a slim margin. The Commission’s work will be considered by politicians to decide upon new powers for Scotland.
ICAS said politicians must be careful to ensure that taxpayers do not “fall through the cracks” in the design of new taxes. ICAS has recommended that tax avoidance could be prevented by setting a tax rate which does not encourage people to move across the border or “game the system,” and said policymakers must also consider international tax competition when designing a unique regime for Scotland.
Source: taxnews- Accountants Discuss Scottish Tax Powers
