Scotland’s Necessary Tax System!

If there is to be a Minister of Tax then there must also be a Parliamentary Committee for Tax. One of the
great weaknesses of the UK House of Commons is that it has never been able to agree who holds the
government to account with regard to tax. Neither the Treasury or the Public Accounts Committee have
a clear mandate to do so, and as such responsibility falls between them. Worse, neither is given the
resources to research tax as a result. This means that far too little investigative work on HMRC is
undertaken by parliament, and expertise and understanding on the issue of tax amongst MPs is not
developed. Scotland has to avoid these traps by having a dedicated tax committee within its parliament.

I wonder if we can think of anyone who should be appointed as the head of the dedicated research unit for the parliamentary committee?

Revenue Scotland must not replicate this and its governance structure must be robust to ensure that
this is the case. It should have a Board made up of both Revenue Scotland personnel and people
representing a wide range of stakeholder groups, and not just business interests.

Or maybe one of these jobs? He is, after all, civil society.

The groups to be
represented might include both large and small businesses, including the self-employed; employees and
trade unions; charities and civil society; local authorities and the tax profession as well as the staff of
Revenue Scotland.

Yes, maybe one of those jobs.

A tax gap analysis explaining how much tax was not collected annually and why;

Or maybe writing this report?

An annual tax spill over analysis explaining how the weaknesses in the tax system might be
addressed.

Or this one?

Whilst it is unusual for a country the size of Scotland to be a
full member of the OECD

12 of the 37 (?) members are the size of or smaller in population than Scotland. Around one third of the membership is not “unusual”.

Examples of alternative taxes include a progressive financial transaction tax charged on all the financial flows through both personal and corporate bank accounts within Scotland. Such a tax was used in Brazil at one time and was very successful.

That’s just barking mad. And love to see what his definition of success here is…..

22 thoughts on “Scotland’s Necessary Tax System!”

  1. Hold on, the Treasury doesn’t hold the Government to account, the Government holds the Treasury to account. The Treasury are the staff, not the bosses.

    And in our constitutional setup, it is eminently clear – Parliament holds the Government to account. Was he not conscious during the May/Brexit debacle when Parliament prevented the Government from doing anything?

    Parliament is Sovereign. Government is a committee of Parliament, Treasury are the help hired by Government.

  2. So long as this is all paid for by the Scots, and he has to go live in Jockland, what’s the problem?
    We are rid of him.

    Think of it as the B Ark being filled.

  3. Another shameless pitch for a job and a grant. Looks like he has given up on Labour and is pitching to the SNP. Perhaps they are deluded enough to take him seriously.

  4. Bloke in North Dorset

    Examples of alternative taxes include a progressive financial transaction tax charged on all the financial flows through both personal and corporate bank accounts within Scotland. Such a tax was used in Brazil at one time and was very successful.

    So successful that politicians who love geese that lay golden eggs scrapped it.

    I guess there must have been a neo-liberal plot to get rid of it.

  5. England, we don’t want your dregs exported up here, we’ve already got enough of the fvckers.

  6. Given that the rUK and Scottish banking systems would remain extremely interconnected, presumably that would mean that everyone in Scotland would be forbidden to use or have a bank account outside of Scotland, because if not there will be about a hundred Scottish bank accounts still in existence when that law comes into effect.

    The Spud destroys the Scottish banking industry! Magna fucking fique.

  7. Rather than holding to account those in charge of collecting tax, I would prefer that they were a bit more strict about what they spend the money on.

  8. I’ve read some interesting stuff about how difficult it was to get any business done in Nazi Germany (that it was near impossible in Soviet Russia is a given). Too many rules. Too much government interference.

    It’s the world Spud would like to see. A workforce of at least 50% of the population employed by the government to oversee the work of the other 50%.

  9. Wouldn’t a jock FTT mean the entire investment trust business based in Edinburgh would move south of the border?
    Bring it on I say

  10. @Andrew C

    I was recently reading that Tesla are having a bureaucratic nightmare trying to build and then have operational a manufacturing plant in Germany.

  11. Bloke in North Dorset

    BraveFart

    England, we don’t want your dregs exported up here, we’ve already got enough of the fvckers.

    Looks like your not getting any of us as tourists as well.

    https://twitter.com/Iain_L/status/1395277822084661250?s=20

    I have to say that some of the rhetoric has put me off. Mrs BiND is desperate to do a west coast tour in our motorhome, I’m less than convinced even though I know its a nasty minority.

  12. Interesting that Spud alludes to an FTT in Brazil. It was proposed by the Finance Minister, Guido Mantega, an academic economist and therefore a staunch lefty – think Simon Wrong-Lewis without a beard. It was instituted partly in 2009 but had to be withdrawn before a planned extension came into effect, which is hardly the level of success you might expect from Spud’s drivel. The reasons?

    Brazil’s finance minister, Guido Mantega, said that a drop in foreign inflows prompted the removal of the FTT, known as the IOF in the local language, which has been applied to foreign purchases of government bonds and other fixed-income investments since 2009…. The abolition of the planned 6% FTT, effective immediately, removes a key barrier that Brazil had raised to prevent the BRL from strengthening too much. The appreciation of the currency was hurting local industries and exporters.

    Spud talking bullshit?

    https://www.bobsguide.com/2013/06/12/brazil-drops-its-financial-transaction-tax-ftt/

  13. I suppose that the journo meant “depreciation” rather than “appreciation”, otherwise it reads oddly

  14. If you want to stop appreciation of the currency then you do stop people sending capital in. Switzerland has done this. If you want to stop depreciation then you stop them taking it out and lift any taxes that prevent them sending it in.

  15. Dennis, Odin's Tax Collector

    A tax gap analysis explaining how much tax was not collected annually and why

    Both the IRS and HMRC publish estimates and analysis related to the tax gap on a regular basis.

  16. Bloke in North Dorset

    His expectation of the tax gap is like someone looking down the back of the sofa expecting to find £50 notes and coming up wit a couple of 2p coins.

  17. It’s a little known fact that back in 1973, in his early 20s, Murphy had a shot at Hollywood fame after he had left Southampton University after a term in frustration at the fact 200 years plus of economic theory didn’t conform to his understanding of the world. Unfortunately he lost out to Clint Eastwood for the film ‘High Plains Drifter’ and consoled himself with a role in the B movie ‘High Plains Grifter’ , a film which has been ongoing for more than 4 decades hence,and continues even to this very day as a real life drama-documentary.

  18. No Rob. The tax in Brazil was applied to foreign purchases of government bonds and other fixed-income investments since 2009.

    It wasn’t a financial transaction tax at all. It more or less prevented the undesired transactions.

    NZ recently did a study on introducing an FTT. Because our Treasury types are not idiots, they were fully against it. “Due to the ease with which an FTT could be avoided in New Zealand as a result of
    our proximity to Australia, we conclude that an FTT would likely have a negative impact on revenue integrity.”

    Scotland would be even worse, because you don’t even have a time difference.

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