Board minutes: 13 May 2026

Meeting of the Revenue Scotland Board

13 May 2026

10:00 - 14:00, Victoria Quay

1. Meeting opening

Welcome and introductions

1.1    The Chair opened the meeting, welcoming all attendees. He extended a particular welcome to Colin Woods from EY, who was observing the meeting for the purposes of the Board Effectiveness review, and Laura Anderson, Team Leader for Charity Accounts and Annual Returns at OSCR, who was also observing the meeting.

1.2    The Chair also noted that this was Jean Lindsay’s final Board meeting. He thanked Jean for her seven years of service as an RS Board Member ahead of her final term coming to an end on 30 June 2026.  

Apologies

1.3    No apologies were received.

New Declarations of Interest

1.4    No new declarations of interest were raised.  

Draft Minutes of 25 February 2026

1.5    The Board approved the draft minutes of Board meeting held on 25 February 2026. 

Action and Decision Log

1.6    The Head of Corporate Operations introduced the action log, noting open actions and providing an update where appropriate. 

1.7    It was agreed that actions: A29/25; A37/25; A40/25; A41/25; A42/25; A43/25; A45/25; A46/25; A49/25; A50/25 and A51/25  were to be closed.

1.8    The Board discussed A27/25 on the debt position, the Chair requested this action be escalated and resolved promptly, with an update provided to the Board.

1.9    The Board also discussed A47/25 and introductions with new MSPs, requesting they be scheduled before summer recess. They further noted that engagement with MSPs should include offering opportunities to increase awareness of Revenue Scotland.

1.10    The SEC Chair advised the Board that A29/25 was proposed for closure, however, the update on the rollout of Mission 7 training was presented only an hour before the SEC meeting, which did not allow sufficient time for Committee discussion. This point was acknowledged by the executive.

2. Chair's Update

2.1    The Chair updated Members on Board recruitment, confirming that recruitment for the RS Chair position will commence in January 2027. Recruitment for a new Non-Executive Member will begin this month, with the aim of having an appointment in place by December 2026. 

2.2    The Chair also thanked the team for the SETS 3 Information Day held on 8 May, noting it was very professionally delivered.

2.3    The Board approved the Health, Safety and Wellbeing Policy that was issued in correspondence and were content with the amendments that had been included.

3. SEC Update

3.1    The Chair of the SEC provided an update, highlighting the following areas of interest to Board members from the 28 April SEC Meeting:

1. There had been discussion around developing a menopause policy, while not mandatory SEC agreed it was best practice and should be progressed.
2. The EDI Mainstreaming Report had been published on time and in compliance with legal requirements. Thanks were extended to the Head of Legal  and the wider team for all the progress and good work undertaken.
3. Stress continues to be the primary cause of absence. Mitigating actions were ongoing, including awareness initiatives and manager-led discussions. Staff turnover has reduced to 12% and remains within acceptable limits.
4. The two risks remitted by the ARC had been discussed and agreed, including the new combined organisational change risk.
5. Diversity data had improved slightly, with continued discussion around the limitations of the data the consequential need to seek wider assurances in this area.
6. The new Employment Rights Bill, introduced on 1 April, was considered. Much of the policy framework will be led by SG, minimising the need for internal policy development.
7. A review of the SEC structure recommended streamlining agendas and meeting formats. This was endorsed, with Idong to assume the role of SEC Chair from July and trial the revised approach.
8. Papers on the 35-Hour Working Week and Workforce Planning Framework were considered via correspondence; further discussion on the 35-Hour Working Week is scheduled for the July meeting.
9. The SEC Effectiveness Review was completed, concluding that the Committee is operating effectively. Findings will be included in the SEC Annual Report to the Board.

3.2    The Chair noted the positive progress and thanked the SEC Chair for the update.

4. ARC Update

4.1.    The Chair of the ARC provided an update, highlighting the following areas of interest to Board members following the 25 March ARC meeting: 

1. An update had been provided on the preparation and audit of the 2025/26 Annual Report and Accounts, including a revised, more concise FREM-focused format. The ARC will review the draft in June, ahead of Audit Scotland’s final audit in July. Delivery remains on track for sign-off by the end of September.
2. Cybersecurity activity over the past year was reviewed, noting that much of the delivery was via external suppliers. Agreed actions included: the development of a supplier assurance summary; a cyber action plan, informed by benchmarking, gap analysis and previous BCP exercises, and a supplier risk framework. The Board welcomed the update provided to the Audit and Risk Committee (ARC) and requested that a summary or relevant paper be included in a future Board pack, alongside a verbal update. This would provide the wider Board with assurance regarding the cyber security controls and procedures underpinning the corporate cyber risk. It was also agreed that the Business Continuity Plan (BCP) presentation from the business continuity exercise would be circulated to Board members following the meeting.
3. The Committee noted that the Cyber Governance Code of Practice training had been completed by all members of the Board.  The ARC is grateful to the support of all Board members of fulfilling this request.
4. The quarterly review of the Corporate Risk Register had been undertaken. This included approval of a new single risk relating to corporate change, following discussion at the previous ARC.  This risk had been shared with SEC for their consideration, as mentioned within the SEC report. 
5. Internal Audit confirmed that the 2025/26 internal audit plan was on track and presented proposals for 2026/27 for four planned assurance reviews which were agreed by the ARC and endorsed for approval by the Accountable Officer. 
6. Audit Scotland highlighted key points from the 2025-26 Audit plan, covering the scope of the audit, risk considerations, materiality, consideration of IA reviews and the audit fee. The Committee was satisfied with the proposals delivered. 

4.2    The Board noted that the interim audit management letter from Audit Scotland had been received and would be presented and discussed at the ARC meeting on 10 June, reflecting issues identified in the previous financial year.

4.3    The Board reviewed the updated Risk Appetite Statements, previously considered by ARC in March. It was noted that they are forward-looking, outlining the level of risk the organisation is prepared to accept as it progresses, while recognising anticipated challenges. They are aligned with the corporate planning process and will be tested during development of the 2027–2030 Corporate Plan. The Board approved the statements but questioned the generic language and asked that this be reviewed as well as consistency within the framing. Members also highlighted the need to amend risk six to align with the annex. 

5. Chief Executive's Report

5.1    The Chief Executive provided an update on items not otherwise covered in the agenda for the meeting, highlighting the following points:

1. Monthly meetings continue with the SG DG Exchequer and Director of Tax. The Director has confirmed that she will attend the next Board meeting to provide an update on the new administration.
2. A new RS structure had been developed, supported by a detailed resourcing plan. This had been discussed in at the most recent SEC meeting and Trade Unions had been consulted and were content with the proposed approach.
3. SG will be launching their Corporate Plan over the summer, as RS continues to develop its own 2027-2030 Corporate Plan.
4. The Non Domestic Rates (NDR) workshop in April had been a successful event and was well attended by local authorities. Feedback has been positive and further engagement is planned. 
5. Scottish Aggregates Tax (SAT) had successfully gone live on 1 April, with 118 operators now enrolled and the first tax return submitted.
6. Monthly meetings between SG Senior Management Team and RS Senior Leadership Team are now in place. This replaces what was the Tax Partnership Board. A review of ways of working is scheduled with the Director of Tax in June. 

5.2    The Chair thanked the CEO for a comprehensive report and welcomed the positive progress made on NDR engagement.

6. Equality, Diversity and Inclusion within Revenue Scotland

6.1    The Head of Legal presented this item, highlighting the legislative requirements placed on RS and how they are met in practice. Activity was assessed against legal duties, policy, best practice, performance drivers and proportionality. 

6.2    Engagement with staff is undertaken regularly, with minimal associated cost. Key focus areas include service users and staff, supported by mainstreaming reports and inclusive policies (e.g. Enhanced Support and Charter of Standards and Values).

6.3    Compliance with legal obligations, including those relating to harassment, were highlighted. The organisation maintains a strong gender balance, with a positive culture reflected in People Survey results and low turnover. The inclusive approach of the organisation was noted as positively influencing recruitment and retention.

6.4    The Board welcomed the presentation. 

7. DDaT Programme

7.1    The Head of Corporate Functions presented two papers: the first provided an update on the SETS3 Project and the second an update on the DDaT Programme. 

SETS 3 Update

7.2    The Head of Data and Digital confirmed that a very positive response had been received to the Request for Information (RFI) for the SETS 3 procurement, including submissions from organisations not in attendance on the information day. The suppliers information day had been very successful and feedback from the day indicated a good market understanding of the requirements, including recognition that the procurement was not for standard IT provision. Suppliers demonstrated alignment with the specification and acknowledged the preferred hybrid delivery approach.

7.3    The next steps would be a detailed review and analysis of responses during May and June, to inform the procurement strategy. A recommended route to market will be presented to the Board in August. This may include further supplier engagement to clarify submissions and the development of detailed, weighted requirements. It was confirmed that initial cost indications provided by suppliers were broadly in line with expectations.

7.4    The Chair commended the team on the progress and noted that discussions had taken place with the ARC and SEC Chairs regarding appropriate oversight arrangements. He requested that the Chair of ARC to engage with the Chief Executive and Head of Corporate Functions to ensure effective oversight and provide assurance to the Board while avoiding unnecessary reporting.

DDaT Programme - Update and Transition Report

7.5    The second paper set out the restructuring of the DDaT programme from 7 missions to 4 as agreed by SLT, which strengthens alignment with the organisation’s strategic priorities and reflects the programme’s maturity. The underlying scope and intent of the programme remained broadly unchanged, with the focus now shifting to consolidation of activity and alignment to new initiatives; particularly SETS3 and the devolved taxes programme.   

7.6    The Head of DDaT noted that there was a need to keep delivery proportionate and to reshape priorities, with activities consolidated into four key mission areas. SETS3 remained the primary deliverable over the next 12 months.

7.7    Key components already in place included the corporate workflow management system and data platform, both of which are live and will continue to enhance capability. Other priorities include digital data literacy, design, and architecture, all of which will support SETS 3 delivery.

7.8    Board members welcomed the paper as a sensible evolution. The Chair noted that this was a positioning paper and referenced the more detailed update provided at the previous Board meeting. It was agreed that future reporting would align with the previous report format, including RAG status and budget oversight. It was further agreed to share the most recent DDaT highlight report with the Board.

7.9    The Board asked about benchmarking DDaT maturity and establishing a clear baseline with measurable outcomes. The Head of DDaT confirmed that a data maturity assessment had been undertaken previously, indicating a ‘developing’ level of maturity. It was agreed that it would be beneficial to repeat this assessment to measure progress. 

7.10    Progress on benefits realisation was noted, including the development of benefits report linked to system improvements and new functionality. The Board requested sight of these reports.

7.11    Board members acknowledged positive progress and requested future reporting include forward financial projections and a high-level “plan on a page” to illustrate delivery over the medium term.

7.12    The Board asked whether the use of AI was being considered as part of the SETS 3 programme. It was confirmed that opportunities to embed AI appropriately within SETS 3 will be explored as part of the procurement process.

7.13    Members enquired about AI skills within the organisation. It was noted that, whilst IT skills are assessed annually through RS skills survey, AI skills (including use of MS co-pilot) were not currently specifically included.  The Board asked that an update be provided on the uses of AI within the organisation, its governance and guidelines around its use, and how staff were supported and trained in its application. 

8. Stakeholder Engagement

8.1    The Head of Business Development introduced this item, confirming that feedback from the previous Board meeting had been incorporated. The Board was asked to confirm agreement in principle, with further detail on roles and timelines to follow.

Annex A: Revenue Scotland Engagement Plan

8.2     The Board welcomed the Engagement Plan, noting it as a significant step forward. While the activity and processes were clear, members highlighted the need for defined measures of success.

8.3    Members also noted that further consideration is required on feedback mechanisms, including how outcomes will be captured and assessed beyond Board input.

Annex B: Board Engagement Plan

8.4    The Board also welcomed the Board Engagement Plan. The Chair encouraged members to share event dates to support coordinated engagement. Board Members highlighted potential additions to the skills/engagement matrix, noting that some members may identify with additional categories and were asked to feedback any proposed amendments to the Head of Strategy and Communications. 

8.5    There was agreement on the importance of capturing and sharing feedback, including post-engagement write-ups to assess effectiveness and outcomes.

8.6    The CEO noted that this aligned with the wider engagement plan and confirmed her oversight as SRO for this work.

8.7    The Chair expressed the Board’s thanks for the good progress.

9. Q4 New Devolved Taxes

9.1    The Programme Lead provided the Board with an update on Scottish Aggregates Tax (SAT), highlighting that delivery had progressed well, with the quarry register now live. 118 operators had been enrolled and 82% coverage achieved. The implementation had been well received and will now transition to BAU, with lessons learned underway and project closure planned over the summer.

9.2    The Programme Lead explained that the Air Departure Tax (ADT) programme will adopt a similar approach used for SAT, focusing on further IT system development alongside strong stakeholder engagement. Stakeholders had to date welcomed early engagement, with some noting that Revenue Scotland had been the first tax authority to proactively initiate discussions with them.

9.3    For Scottish Building Safety Levy (SBSL), the Board were advised that IT development is progressing at a slower pace given the longer timeline. Dedicated project managers are in place for both SBSL and ADT, with overall progress on track. The key focus remains secondary legislation, which is being actively managed ensuring that the Programme Team is sighted. 

9.4    The Chair congratulated the team on behalf of the Board for the successful delivery of Scottish Aggregates Tax, recognising it as an exemplary project delivered to a high standard.

10. Q4 Performance Report

10.1    The Head of Corporate Functions introduced the Performance Report, noting that the Q4 report would form the basis for reporting within the Annual Report and Accounts. Success measures were all green. Budget and People Services indicators were all within tolerance and overall performance was in good shape.

10.2    The Head of Tax explained that the Scottish Fiscal Commission’s (SFC) predictions were higher than the RS predictions, with lease activity showing some tapering. He explained that filing performance is the best to date, with over 80% overall compliance and 50–55% on time filing (over a 5 month period) which reflects the impact of penalties. Lease reform remains central to Year 2 Bill proposals.

10.3    Debt collection had shown a reduction in core tax debt, though penalty debt remained an issue. LBTT debt had reduced from 53% to 43%, with improvements driven by more timely penalty issuance.

10.4    The Chair asked about the proportion of debt where no tax was due. It was confirmed that figures were not immediately available but that this issue was being considered as part of the ongoing LBTT review; continued monitoring was agreed.

10.5    The Chair also queried risks of insolvency among SLFT companies and was advised there are were currently no current concerns beyond those already accounted for this year.

11. AOB

11.1    There were no items of AOB raised.

End of meeting

13 May 2026