Board minutes: 2 October 2025

Meeting of the Revenue Scotland Board

2 October 2025

10:00 - 12:00, meeting held via Microsoft Teams

1. Meeting opening

1.1    The Chair welcomed attendees to the meeting. 

1.2    The Chair noted that the purpose of the meeting was to consider the Annual Report of the Audit and Risk Committee for 2024-25, to approve the Annual Report and Accounts for 2024-25 and to recommend to the Chief Executive that she sign the letters of representation as Accountable Officer.

Apologies

1.3    No apologies were received.

New Declarations of Interest

1.4    There were no new declarations of interest.

2. Chair's update (oral)

2.1    The Chair reported that the recent quarterly meeting with the Minister for Public Finance had been constructive and noted that the Minister was looking forward to attending the 10-Year Anniversary event in Glasgow the following day.

3. Chief Executive's update (oral)

3.1    The Chief Executive briefed the Board with further detail on the recent quarterly meeting with the Minister for Public Finance. A key focus at the meeting had been securing Revenue Scotland’s participation in the digital strand of the PSR programme led by the Scottish Government. She confirmed that this was being actively pursued. She highlighted that the Minister expressed strong support for Revenue Scotland and encouraged ambition in any future PSR proposals the organisation might want to put forward. Concerns regarding landfill tax, industry impacts, and associated liabilities were also raised, which the Minister noted with interest.

3.2    Additionally, the Chief Executive noted that she has been invited by the Minister to participate in the budget roundtable discussion in November. She further confirmed that the Finance and Public Administration Committee (FPAC) meeting is scheduled for 18 November.

3.3    The Chair thanked the Chief Executive for the update.

4. Report from the Chair of the Audit and Risk Committee (ARC)

4.1    The ARC Chair provided the Board with a short summary of the Annual Report of the ARC for 2024-25. He highlighted that there had been no material change since the report had been approved by the Audit and Risk Committee the day before and that the report set out how the ARC had fulfilled its remit during 2024-25.

4.2    The ARC Chair confirmed that the Committee recommended that the Board approve the Annual Report and Accounts for 2024-25, comprising both the Resource Accounts and the Devolved Taxes Accounts. This recommendation was based on the ARC Annual Report, which outlines the Committee’s work and conclusions.

4.3    The report highlighted several key areas. Membership of the ARC had been strengthened during the year with the appointment of two co-opted members, Julie Hesketh-Laird and Stephen Ramsay. The Committee successfully completed its 2024/25 work plan, and the forward plan for 2025-26 reflected  a consistent approach to previous years.

4.4    In relation to Internal Audit, reviews were conducted by the Scottish Government’s Directorate of Internal Audit and Assurance (SGDIAA). The Committee strongly welcomed the fact that the overall internal audit assurance opinion had been ‘substantial’ (the highest rating) for the fifth consecutive year, an exceptional achievement that demonstrates the robustness of Revenue Scotland’s control environment and governance culture.

4.5    The Chair noted that section 6 of the report summarised the external audit process for the audit of the accounts for 2024-25. He highlighted that all issues raised during the audit, including those identified in the interim management letter, had been addressed. The ARC also engaged fully with the matter concerning the disclosure of Related Party Transactions within the Devolved Taxes Accounts and that position agreed with Audit Scotland, fully endorsed by the ARC, is now reflected in Note 10 of the accounts. 

4.6    He confirmed that the Committee had overseen the preparation of the Annual Report and Accounts, including the Accountability and Governance Statements, and confirmed that all significant points had been addressed. The Committee had also reviewed the Letters of Representation required to be signed by the Accountable Officer and confirmed there were no issues preventing their signing.

4.7    The ARC continues to engage actively with Risk Management, focusing on the Corporate Risk Register and key risks. The Committee is satisfied that systems for managing risk remain robust, fit for purpose, and responsive to Revenue Scotland’s needs. An assessment of ARC’s effectiveness concluded that the Committee remains effective, while welcoming feedback for continuous improvement.

4.8    The ARC Chair expressed his appreciation for the significant effort and support provided by Revenue Scotland staff throughout the year. Thanks were extended to all ARC members for their contributions and to Martin McEwen for his exceptional leadership as former ARC Chair. Finally, on behalf of the Committee and its members over the last ten years, the ARC Chair, extended his thanks to the Chief Executive for her support as both Chief Executive and Accountable Officer. 

4.9    Board members endorsed the view that this was a reassuring and comprehensive report on the work of the Committee. They recognised the significance of receiving a substantial assurance rating for the fifth consecutive year, which reflected the quality of the Committee’s oversight and the commitment of all involved. Members expressed appreciation for the way the Revenue Scotland team had responded so positively to the issues raised within the interim audit letter, ensuring that all concerns were addressed to the auditors’ satisfaction. The Board Chair highlighted that Audit Scotland had commended the team for their professionalism and for providing all necessary information promptly and effectively, which contributed to a successful audit outcome.

4.10    The Chair thanked the ARC Chair for the detailed summary.

5. Annual Report and Accounts 2023-24

5.1    The Head of Strategy and Communications and the Head of Finance introduced both the Resource Accounts and Devolved Accounts, which had been presented to Audit Scotland and reviewed by the Audit and Risk Committee. The Head of Strategy and Communications confirmed that the documents had been prepared in full accordance with the accounting principles and disclosure requirements set out in the FReM.

5.2    She confirmed that both sets of accounts had been discussed with the Committee with the Auditors present and that the ARC was content for both sets of Accounts to be presented to the Board for formal approval. She noted that this year’s accounts had been designed with a more personal touch, incorporating staff photographs to reflect the people that make up the organisation.

5.3    Within the Resource Accounts there had been no substantive changes made. The material changes were highlighted within annex 2 of the Audit Scotland Report.

5.4    The Head of Finance reported on the Devolved Taxes and third party transactions. He made reference to the policy paper shared with the Board setting out the agreed position and that Audit Scotland were content with this. He confirmed that the following statement had been agreed with Audit Scotland and had been added to the Notes to the Accounts section of the Devolved Taxes Accounts “There were no related party transactions requiring disclosure under ISA 24 for 2024/25 or 2023/24”. The Board was advised that this statement would be reviewed annually but that it would be unlikely to change unless there was a fundamental change in Revenue Scotland’s powers.

5.5    The Chief Executive confirmed that a pragmatic solution has been reached on third party related transactions, with both parties in agreement. She noted that the ARC had approved the policy to avoid recurring debate, unless in future there was to be a fundamental change in tax arrangements. The policy is based on the principle that Revenue Scotland does not set tax policy or rates, as these responsibilities lie with the Scottish Government.

5.6    The Head of Finance further explained that there had been two outstanding recommendations from 2023–24 (related party transactions and medium-term financial planning). The related parties recommendation is now closed. Whilst medium-term financial planning had been taking place, Audit Scotland would like to see a greater range of scenarios being considered and work to do this would be undertaken during 2025/26. As such, this recommendation remained open. Additionally, two new recommendations had been raised, one concerning resilience within the finance team and the other around putting a formal process in place requiring an annual impairment review.

5.7    The Board endorsed the position agreed with Audit Scotland. The ARC Chair confirmed that the Committee had been fully engaged in the comprehensive process of reviewing and compiling both sets of accounts and recommended their inclusion as presented for Board approval.
 

6. AOB

6.1    The Chair expressed appreciation to all Board members for their engagement throughout the year, with particular thanks to the ARC for its active contribution. Gratitude was also extended to the Revenue Scotland team for producing a strong set of Accounts.

6.2    The Head of Corporate Functions acknowledged the efforts of the wider team, specifically thanking the Heads of Strategy and Communications, Corporate Operations and Finance for their frontline work in responding to Audit Scotland’s queries. Special thanks were given to Steven Wright, who had acted as Interim Head of Finance and significantly contributed to addressing the issues identified within the interim audit letter.

6.3    The Chief Executive, attending her final Board meeting before stepping down, conveyed her sincere thanks to both the current and previous Boards for their support and constructive challenge, which has enabled her to lead Revenue Scotland. She highlighted the trust-based relationship between the Board and Executive, and commended the Chair’s leadership in fostering a culture of openness. 

6.4    She also thanked the ARC Chair and Committee for their support during the interim audit period, noting the value of the weekly calls and expressing confidence in ARC’s continued stewardship. Appreciation was extended to the SEC Chair and Committee for their leadership in helping to strengthen the organisation’s focus on health and safety and its people.

6.5    Finally, she paid tribute to the leadership team, acknowledging the contributions of the Heads of Legal, Tax, and Corporate Functions, and their growth over time. She noted that five consecutive years of substantial assurance and unqualified accounts from Audit Scotland reflect the strength of leadership across the organisation. She concluded by thanking all involved.

6.6    The Chair responded by thanking the Chief Executive, recognising her as a distinguished leader whose guidance has been instrumental in Revenue Scotland’s success.

6.7    The Chair closed the meeting by thanking everyone for a great year. 

End of Meeting 11:17

Date of next meeting: 26 November 2025