I think I will start with the fiscal powers debate.

There have been two more important contributions during the last week.  Both the Prime Minister and the former UK Chancellor, Alistair Darling, have said that devolving further tax and fiscal powers should be considered if Scotland votes “no” in 2014.  These announcements are only the latest in a series of high profile statements on this issue. In fact the Scottish electorate is in danger of being crushed in the stampede of former opponents of serious fiscal autonomy announcing their very own Damascus type conversion.

What though of the friendless Scotland Bill?  There is an obvious opportunity here for those who are against independence but in favour of greater tax and fiscal powers.  There is time to amend the Scotland Bill and to give a clearer idea of how much power they believe should be devolved.  That would also mean that the PM would have to give us some idea of which additional powers should be devolved rather than simply refusing to answer the question as he did this week.  There could even be a clause in the Bill saying that the provisions do not come into force until after the referendum.

If this is not done, and there is a no vote in the referendum, we will have years of further debate on this issue.

Now to HMRC’s latest targeted tax avoidance campaign.  The contrast to how HMRC and HM Treasury, albeit with Ministerial approval, have helped dozens of high earners employed by the public sector reduce their tax bills, is a stark one.

As a former electrician, long story, I was interested to see that the top dogs in the world of tradesmen are next to be offered a partial tax amnesty by HMRC.  Those who accept will be charged penalties of only 10 to 20% of the tax owed rather than the 100% maximum available penalty.  A similar campaign concerning plumbers has so far led to ten arrests and thousands of investigations.  I have resisted the urge to explain the main difference between an electrician and a joiner.  More on this offer can be found here.  Worth looking at even for an example of HMRC humour which is found in the title.

Let’s stick with HMRC.  HMRC is about to start issuing penalty notices for 850,000 late self assessment income tax returns.  HMRC have also reported that a record 90.4% of taxpayers filed on time this year.  I do though look forward to reading some of the fantastic excuses that people have used to explain why their return was not returned on time.

Now to the UK Budget which is less than a month away.  Lots of rumours regarding tax relief on pensions and what the Liberal Democrats are “demanding”.  I expect to see more “stories”, for stories read “briefing against my fellow Ministers”, on the cost of bringing forward the planned increase to the personal allowance.  I also expect to see more calls for a reduction in business taxes and simpler labour laws from sources in the Conservative party.  For “sources” read “Liam Fox”.

To put the tax cut debate into context the UK has borrowed £93.5bn so far this tax year.  That is down from £109.14bn in 2010/11.  Tax receipts are though likely to be back to pre-crash levels this year.   As is usually the way with statistics both sides can quote these figures to back up their arguments.

Now to a warning by the body who regulates solicitors in England & Wales.  Practitioners who help clients reduce their stamp duty land tax liabilities may be risking disciplinary sanctions. The Solicitors Regulation Authority is especially concerned about residential property schemes.  More on this can be found here.  I will be interested to see if the Law Society of Scotland decides to issue a similar warning.

I liked the following from a story in the Herald: “Gangster tax”.  Strathclyde Chief Constable Stephen House believes that police should be allowed to keep a share of the ever growing haul of underworld assets seized under the Proceeds of Crime legislation.  This legislation allows for the civil recovery and confiscation of money, goods and property earned through illegal means.  The Herald article can be found here although registration is required.

Now to Europe.  Europe’s Tax Commissioner Algirdas Semeta has given a speech assuring the City of London that it will benefit from a European Union financial transactions tax.  Good to see the Telegraph covering both sides of this debate.  I was particularly interested in one point made by Semeta.  Semeta challenges the claim that ordinary citizens and businesses would bear the brunt of the tax.  Semeta is quoted in the Telegraph article that day-to-day financial activities will not be included and that 85% of the transactions take place purely between financial institutions.  The article from the Telegraph can be found here.

Now to Japan.  A piece on the BBC news website reports that the Japanese cabinet has passed a plan to double sales taxes in an attempt to control the soaring costs of public debts.  The plan, which needs the approval of Japan’s parliament, will see taxes raised from the current 5 to 8% in April 2014 and then up to 10% by October 2015.  The reason for this is that Japan’s social security costs are expected to rise by 1tn yen (£8bn) a year as its population ages.  It estimates 40% of the population will be of retirement age by 2060.  The BBC news website article can be found here.

Lastly I was disappointed to find out that there is no longer a Stamp Office presence at Registers of Scotland.  It we cannot even join up these two bodies then it is clear there is no appetite amongst either the politicians or the civil servants, whether of a Scottish or UK ilk, to review and hopefully consolidate the numerous tax, law and registration services that currently exist in Scotland.  Given the relatively small size of our country and the likelihood of greater tax and fiscal powers being devolved then this is clearly a case of sticking one’s head in the sand.

Have a good weekend.