Cruise ship levy: consultation

5. Calculation and Collection

Whilst connected to the issue of the basis of any cruise ship levy charge, there is a separate consideration about who would be best to calculate and collect a cruise ship levy. A cruise ship levy could be a self-assessed tax, where the calculation is carried out by the organisation liable for paying it. Alternatively, it could be calculated by another organisation and then billed to the body liable for paying the levy.

If a cruise ship levy is self assessed then the cruise ship operator could be responsible for assessing the level of cruise ship levy to be paid, and paying that to the local authority at set intervals (e.g. annually). Another potential approach would be to require another body, such as the relevant port operator, or a national body such as Revenue Scotland, to collect a cruise ship levy, and then remit it to the local authority at set intervals. In many cases port operators will already collect fees and levies from cruise ship operators that use their port.

A further option could be for the local authority itself to be responsible for calculating and collecting a cruise ship levy. Under this arrangement the levy would not be self assessed but calculated and then billed by the local authority. If someone other than the local authority collects a cruise ship levy there will need to be appropriate arrangements for remitting (passing on) the levy to the local authority. Potentially the body responsible for collecting the levy could arrange for a third party (such as a shipping agent) to do so. All of the options would bring an additional administrative burden on the body involved, though the Government would seek to minimise any such burden.

Question 5: Who should collect any cruise ship levy? Select one

• Cruise ship operator
• Port operator
• Local authority
• Other (please specify)
• Don’t know

Please provide the reasons for your answer.