Accountants criticise Scottish tax plans

Date: 23rd July 2008

More accountants have revealed that they believe proposed plans to alter the income tax system in Scotland would hurt businesses in the country.

After the Scottish National Party proposed to create a new system of local income taxation as a possible replacement for council tax, the Federation of Small Business (FSB) said the plan was bad news for business.

Now, accountants have added their voices to calls to scrap the proposals.

Tax experts from PricewaterhouseCooper (PwC) said that the proposals would be very hard to implement and would put businesses at a competitive disadvantage.

Accountant Rhona Irving explained: "It's still not clear how workable the proposals would be and we believe more research into the rate of tax that would be needed to replace the amount currently collected by council tax is required.

"Many people are also concerned that the cost of collecting the tax will have an impact on business and will fall most heavily on the shoulders of the small businesses, the lifeblood of Scotland."

When the FSB criticised the plan, spokesperson Andy Willox said the system would create "more costs, more red tape [and] more bureaucracy" for the country's small businesses.