Scottish Income Tax - operation by HMRC: service level agreement

Management Arrangements

Day-to-day Relationships

It is expected that both parties will do all things reasonably within their power that are necessary or desirable to give effect to the spirit and intent of the Agreement.

Both parties are expected to act in good faith and use their best endeavours to resolve by agreement any disputes, differences or questions arising out of or relating to this Agreement.

Both parties will nominate a single point of contact (SPoC) to oversee the day-to-day management of any matters relating to this Agreement.

Such matters will be handled in a proactive and inclusive manner to ensure that the ongoing, administration of Income Tax for Scottish taxpayers continues to the required levels as set out in this Agreement.

Scottish Income Tax Board

In the first instance oversight will be provided by the Scottish Income Tax Board. The Scottish Income Tax Board will meet quarterly, chaired by the relevant deputy directors in each organisation (or their delegates). The SPoCs will agree the agenda and the Board will consider any relevant matters arising from the delivery of any aspect of this Agreement. This includes all business as usual activity around SIT, across operations, compliance, data and policy. These will consider financial data provided by HMRC for this period so should fall in line with the quarterly reporting and invoicing requirements.

Biannual Reviews

Additional scrutiny will be provided at the biannual Review meetings. Biannual reviews will be held between the signatories of this Agreement at which the overall effectiveness of this Agreement and HMRC’s performance against it will be kept under review. These can either take place as meetings or via correspondence.

Additional Accounting Officer

HMRC has appointed an Additional Accounting Officer with the overall responsibility for SIT powers who is accountable for the performance of HMRC in establishing and operating SIT powers.. The AAO will be available to give evidence to Scottish Parliamentary Committees when required. The responsibilities of AAO post are set out at Annex D: HMRC Additional Accounting Officer Responsibilities.

Annual SIT Report

HMRC will publish an Annual SIT Report each September which covers the activity it has undertaken in the preceding tax year relating to this Agreement and its performance measures.

Dispute Resolution

When a dispute arises about the operation of this Agreement, or any variation or interpretation of this Agreement, both parties will initially seek to resolve this informally through the SPoCs. Where individual SPoCs cannot resolve any such dispute, in the first instance any such dispute is to be raised with the relevant deputy directors in each organisation as Chairs of the Scottish Income Tax Board.

If this does not resolve the issue, it will be referred to the signatories of this Agreement, who will work with the SPoCs and any other relevant individuals to resolve it.

If the process set out above fails to secure resolution to any dispute between HMRC and the Scottish Government concerning the operation of this Agreement, or any variation or interpretation of this Agreement, the issue will be referred to the Additional Accountable Officer in HMRC and the Scottish Government’s Director General Scottish Exchequer for decision.

In exceptional circumstances, where the dispute cannot be resolved by the above process, it is open to either party to refer to ministers. The Joint Exchequer Committee provides ministerial oversight of the programme of work and will be the final arbiter in points of dispute.

Each SPoC will keep each other informed of any planned escalation, prior to the escalation happening.