ICAS ICAS logo

Quicklinks

  1. About Us

    Find out about who we are and what we do here at ICAS.

  2. Find a CA

    Search our directory of individual CAs and Member organisations by name, location and professional criteria.

  3. CA Magazine

    View the latest issues of the dedicated magazine for ICAS Chartered Accountants.

  4. Contact Us

    Get in touch with ICAS by phone, email or post, with dedicated contacts for Members, Students and firms.

Login
  • Annual renewal
  • About us
  • Contact us
  • Find a CA
  1. About us
    1. Governance
  2. Members
    1. Become a member
    2. Newly qualified
    3. Manage my membership
    4. Benefits of membership
    5. Careers support
    6. Mentoring
    7. CA Wellbeing
    8. More for Members
    9. Area networks
    10. International communities
    11. Get involved
    12. Top Young CAs
    13. Career breaks
    14. ICAS podcast
    15. Newly admitted members 2022
    16. Newly admitted members 2023
  3. CA Students
    1. Student information
    2. Student resources
    3. Learning requirements
    4. Learning updates
    5. Learning blog
    6. Totum Pro | Student discount card
    7. CA Student wellbeing
  4. Become a CA
    1. How to become a CA
    2. Routes to becoming a CA
    3. CA Stories
    4. Find a training agreement
    5. Why become a CA
    6. Qualification information
    7. University exemptions
  5. Employers
    1. Become an Authorised Training Office
    2. Resources for Authorised Training Offices
    3. Professional entry
    4. Apprenticeships
  6. Find a CA
  7. ICAS events
    1. CA Summit
  8. CA magazine
  9. Insight
    1. Finance + Trust
    2. Finance + Technology
    3. Finance + EDI
    4. Finance + Mental Fitness
    5. Finance + Leadership
    6. Finance + Sustainability
  10. Professional resources
    1. Anti-money laundering
    2. Audit and assurance
    3. Brexit
    4. Business and governance
    5. Charities
    6. Coronavirus
    7. Corporate and financial reporting
    8. Cyber security
    9. Ethics
    10. Insolvency
    11. ICAS Research
    12. Pensions
    13. Practice
    14. Public sector
    15. Sustainability
    16. Tax
  11. CPD - professional development
    1. CPD courses and qualifications
    2. CPD news and updates
    3. CPD support and advice
  12. Regulation
    1. Complaints and sanctions
    2. Regulatory authorisations
    3. Guidance and help sheets
    4. Regulatory monitoring
  13. CA jobs
    1. CA jobs partner: Rutherford Cross
    2. Resources for your job search
    3. Advertise with CA jobs
    4. Hays | A Trusted ICAS CA Jobs Partner
    5. Azets | What's your ambition?
  14. Work at ICAS
    1. Business centres
    2. Meet our team
    3. Benefits
    4. Vacancies
    5. Imagine your career at ICAS
  15. Contact us
    1. Technical and regulation queries
    2. ICAS logo request

ICAS responds to transient visitor levy (tourist tax) consultation

  • LinkedIn (opens new window)
  • Twitter (opens new window)
Justine Ricommini By Justine Riccomini, Head of Taxation (Scottish Taxes, Employment and ICAS Tax Community)

10 December 2019

Main points

  • The Scottish Government consultation on a proposed tourist tax closed on 2 December 2019.
  • ICAS has submitted its response.
  • ICAS calls for a tourist levy to be based on a national policy whilst offering local rate setting.

On 9 September 2019, the Scottish Government issued a consultation on tourist tax or transient visitor levy (TVL). The consultation closed on 2 December and Justine Riccomini takes us through the key issues.

Background

ICAS has been involved in the policy talks of implementing a TVL with the Scottish Government since the idea was first mooted. After participating in talks with the Scottish Government on 31 October, ICAS has now responded to the consultation document issued in September, concentrating on the operational taxes aspects.

The levy

The intended charge is understood to be proposed on “commercially let accommodation” which involves not just hotels and B&Bs, but also properties let by individuals using booking platforms and apps such as Booking.com and Air BnB. Other providers, from campsites to cruise liners, may also be liable for the charge.

Local or national?

ICAS has said that any levy ought to be based on a broad national policy, but offering local rate setting opportunity as befits each area according to its circumstances. This should help provide ease of operation for businesses and prevent confusion amongst stakeholders and taxpayers (with the same policy, processes, forms etc), whilst allowing local authorities discretion in the amounts charged. All of this is in the context that Scotland should be seen as a welcoming place to visit.

As with any taxation regime, a dispute resolution mechanism should be legislated for to allow for an appeals and escalation process.

Definitions are vital

ICAS has requested that terms such as “commercially let accommodation”, “tourist”, “tourism”, “overnight” etc. are fully defined in any legislation and examples provided in accompanying guidance.

ICAS considers that as much legislation as possible should be within primary legislation. Careful thought needs to be given to which parts of the local and national elements of this tax should be placed within primary legislation and which are placed in accompanying guidance.

Business burden?

Given that it will be the businesses in the tourist industry which are relied upon to collect the tourist levy, burdens on business need to be kept to a minimum, where possible. It is widely acknowledged that the public finances are already heavily dependent on the work carried out by businesses in their capacity as unpaid tax collectors.

Keeping it Simple

The role of tax reliefs in any tax system needs careful evaluation. As a general principle ICAS supports a broad base and consistent low rates without a widespread use of tax reliefs, which add to complexity and hence administrative costs. Careful consideration needs to be given to proposed new reliefs.

Hypothecation, or into the general tax pot?

To ring-fence a tourism tax and spend it only on tourism-related improvements and services may seem limiting for the local authorities concerned, who may be able to better utilise the revenues raised on other priority items as it sees fit.

However, the tourism industry may not see it that way. It is clear that, if the Scottish Government priority is for this revenue to be spent on tourism, a form of definition needs to be placed upon the term ‘tourism’ for this purpose.

Local authority funding and accountability

Local authorities will need to demonstrate accountability for the additional revenues raised and impact assessments, with a form of reporting of this put in place. Local authorities must also be able to demonstrate that the levy is meeting its objectives. In addition, there is the question of whether local government funding may need to be re-configured and thought given to the national balance of allocations from the Scottish Government.

Conclusion

Further information on this matter will become available once the Scottish Government has reviewed the consultation responses and set out its views on how it proposes to move forward.

The ICAS consultation response can be found here.

Edinburgh_old_town.jpg

Auld Reekie weighs up a tourist tax

By Donald Drysdale for ICAS

6 November 2018

2-23-marsh 2-23-marsh
ICAS logo

Footer links

  • Contact us
  • Terms and conditions
  • Modern slavery statement
  • Privacy notice
  • CA magazine

Connect with ICAS

  • Facebook (opens new window) Facebook Icon
  • Twitter (opens new window) Twitter Icon
  • LinkedIn (opens new window) LinkedIn Icon
  • Instagram (opens new window) Instagram Icon

ICAS is a member of the following bodies

  • Consultative Committee of Accountancy Bodies (opens new window) Consultative Committee of Accountancy Bodies logo
  • Chartered Accountants Worldwide (opens new window) Chartered Accountants Worldwide logo
  • Global Accounting Alliance (opens new window) Global Accounting Alliance
  • International Federation of Accountants (opens new window) IFAC
  • Access Accountancy (opens new window) Access Acountancy

Charities

  • ICAS Foundation (opens new window) ICAS Foundation
  • SCABA (opens new window) scaba

Accreditations

  • ISO 9001 - RGB (opens new window)
© ICAS 2022

The mark and designation “CA” is a registered trade mark of The Institute of Chartered Accountants of Scotland (ICAS), and is available for use in the UK and EU only to members of ICAS. If you are not a member of ICAS, you should not use the “CA” mark and designation in the UK or EU in relation to accountancy, tax or insolvency services. The mark and designation “Chartered Accountant” is a registered trade mark of ICAS, the Institute of Chartered Accountants of England and Wales and Chartered Accountants Ireland. If you are not a member of one of these organisations, you should not use the “Chartered Accountant” mark and designation in the UK or EU in relation to these services. Further restrictions on the use of these marks also apply where you are a member.

ICAS logo

Our cookie policy

ICAS.com uses cookies which are essential for our website to work. We would also like to use analytical cookies to help us improve our website and your user experience. Any data collected is anonymised. Please have a look at the further information in our cookie policy and confirm if you are happy for us to use analytical cookies: