EY veteran returns to Scotland to help drive next phase of growth

MARGARET TAYLOR

terms of altering existing tax bands and thresholds.

However, he said any changes would have to be weighed against deterring any economic activity that could result in a greater tax take in the longer term.

“The challenge the Government has is how it goes about driving its public service agenda at the same time as coming up with a more sustainable economic model,” Mr O’Carroll said.

“It’s in everyone’s interests – business, the public at large and the Government – to make Scotland bigger.

“If you keep it that simple and make the economy bigger and business bigger, then you have the opportunity to increase the amount of revenue the Government is able to raise from taxation.

“To my mind, that is the right kind of taxation because it focuses on growth but also ensures the reinvestment of the wealth created by individuals and companies, not just back into the economy but into enterprises to fuel more growth.”

Mr O’Carroll believes more could be done in terms of tax credits to help the start-up firms of today turn into the big businesses of tomorrow that will create jobs and therefore revenues from income tax and also a greater amount of corporate taxes.

Technology, in particular, is a sector that has benefited from such reliefs, with Edinburgh holiday search business Skyscanner, which was acquired by China’s Ctrip last year in a £1.4 billion deal, being helped in its early years by tax reliefs.

In its accounts for 2016, its last full year before being taken over by Ctrip, Skyscanner’s profit figure was boosted by an £18 million tax credit that its founder Gareth Williams noted was a “one-off” related to employees’ shares in the business.

This, said Mr O’Carroll, is precisely how governments should be looking to help entrepreneurial business because it gives them the freedom to grow before they “take it to the

Aidan O’Carroll has returned to EY’s Scottish practice after 17 years working for the firm in London. next level when they are in a tax-paying position”.

“We need 20 Skyscanners in Scotland, not just one or two,” he added.

Although Scotland has no powers when it comes to setting corporate tax rates, which are the responsibility of Westminster, Mr O’Carroll believes it is “only a matter of time before Scotland gets more devolved powers” as a result of Brexit.

“At the end of the day Scotland will have more powers,” he said.

“If we can grasp those powers to make a competitive difference to make Scotland even more attractive that must be a hugely positive thing.”