The Institute of Chartered Accountants of Scotland (ICAS) has submitted its response to the Scottish Parliament’s call for evidence on the affordability and sustainability of tax and spending plans.

The call for evidence forms part of the Parliament’s pre-budget scrutiny of Scotland’s 2027–28 fiscal plans.

In its response, ICAS called for a long-term, whole-of-government strategy that would align economic growth, tax policy, fiscal sustainability and public service reform.

The institute said this approach is essential to closing the projected £4.7bn gap between Scotland’s spending plans and available funding by 2029/30.

ICAS said it supports the combined approach used in the Scottish Spending Review and Medium-Term Financial Strategy. However, it said the current framework lacks sufficient detail.

The institute also noted several unanswered questions. These include how economic growth will be achieved and how sustainable tax revenues will be delivered. It also raised how these two factors will together help close the fiscal gap.

ICAS added that public sector reform plans need more clarity. Specifically, how reform will improve service delivery, efficiency and outcomes.

It also highlighted a mismatch between budget planning and public service delivery timelines. Without better alignment, spending decisions may be driven by immediate financial pressures.

It added that since gaining additional tax powers through devolution, Scotland’s budget has become more exposed to volatility.

This is because Scotland’s budget now depends more on how its tax base performs relative to the rest of the UK.

ICAS said that Scotland’s tax strategy must be resilient enough to withstand unexpected global and domestic events. It should also adapt to technological changes that could disrupt tax revenues.

It noted that achieving financial sustainability requires coordinated effort. This effort should be guided by a long-term strategy capable of addressing the scale of the challenge.

CPA Australia has said that “stronger-than-expected” economic growth in the June quarter must not distract from an ongoing productivity slump in the country.

The observation comes after Australia’s gross domestic product (GDP) rose by 0.4% in the June quarter of 2026 and by 2.1% compared to last year, according to figures released by the Australian Bureau of Statistics (ABS).

CPA Australia Business and Investment lead Gavan Ord explained that the growth was largely driven by Australians working longer hours.

Higher exports and increased spending in select sectors also contributed to the expansion. Ord also pointed out that productivity lagged behind.

He said: “While the headline GDP figure is slightly better than expected, productivity remains the economy’s weak spot.

“Output per hour worked is lower than it was a year ago – we are working more, not working smarter.”

Stronger demand for electric vehicles and higher coal exports also played a role in supporting growth.

Ord added: “The real story behind today’s figures is Australia’s continuing productivity problem.

“Without stronger productivity growth, it becomes more difficult to lift wages sustainably, improve living standards and strengthen long-term prosperity.”

Ord called for governments to prioritise reforms that ease costs and remove barriers for businesses.

On the role of AI, Ord acknowledged its potential while stressing it is not a complete solution.

“AI has the potential to be a significant driver of future productivity growth, as Treasury has recognised,” he added.

“However, AI alone cannot solve Australia’s productivity challenge. Structural reforms remain essential to improve our tax and regulatory settings and give businesses greater confidence to invest, innovate, create jobs and expand.”

Strong protections must be in place if the government moves ahead with proposals to automatically deduct smaller tax debts directly from bank accounts belonging to persistently unresponsive taxpayers, the Institute of Chartered Accountants in England and Wales (ICAEW) said.

The proposals would expand HMRC’s enforcement powers, allowing it to collect smaller outstanding tax liabilities from some individuals and businesses that have not responded to repeated contact attempts.

HMRC estimates that around one-in-ten taxpayers do not settle tax liabilities on time. It said $2.6bn (£2bn) in lower-value debts remain unpaid after several recovery attempts.

The tax authority’s analysis indicates that around 4.8 million individuals and businesses have tax debts of £5,000 or less for individuals and £10,000 or less for businesses.

These account for approximately 11.5 million debts with a combined value of around £4bn.

In its response to the consultation, which closed last week, the ICAEW said it broadly supported the proposal as a means of reducing the tax gap.

However, it raised concerns about HMRC’s ability to administer the process effectively.

The ICAEW said that any monthly instalment sought by HMRC should be affordable. The institute added that the process should account for taxpayers’ support requirements and vulnerabilities.

However, the ICAEW added that HMRC does not currently hold enough information to assess a taxpayer’s ability to pay accurately or identify their level of vulnerability.

It also called for sufficient statutory mechanisms for taxpayers to object to deductions. A proper guidance would also ensure taxpayers understand their rights and obligations, it said.

Additionally, the ICAEW opposed the proposed 14-day notice period before a deduction is made, arguing that taxpayers would not have enough time to respond.

It recommended a minimum 30-day period for taxpayers to respond to a pre-deduction notice.

The Institute of Chartered Accountants of Scotland recently raised similar concerns about proposed tax debt recoveries by HMRC.

The Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) have opened a consultation on proposed amendments to the Financial Accountability Regime (FAR).

The corporate watchdog and prudential regulator are seeking feedback on amendments that would remove “key functions” requirements from the FAR regulator rules and simplify what must be included in accountability maps.

Under the proposals, entities would no longer need to provide information about accountable persons’ direct reports in those maps.

The changes are designed to lessen the regulatory burden on entities while preserving the information needed for oversight of the regime.

The regulators estimate that the proposals would reduce reporting requirements for all accountable entities and around 4,500 accountable people.

They also expect the number of updates required for accountability maps to be cut by half.

APRA deputy chair Therese McCarthy Hockey explained that the consultation is part of the regulator’s wider work to reduce unnecessary obligations while supporting financial safety and stability.

Hockey said: “These proposed changes maintain strong accountability settings while minimising reporting requirements and supporting efficiency and productivity.

“They will allow entities to spend less time on administration and more time running their businesses.”

ASIC commissioner Alan Kirkland noted that the process reflected ASIC’s continuing focus on simplifying regulation.

Kirkland said: “We continue to explore opportunities to streamline the way entities deal with us in the areas we regulate.

“The proposed changes to FAR reporting will simplify reporting without undermining the strong accountability standards that Australians expect from their banks, superannuation funds and insurers.”

Subject to feedback received during the consultation, ASIC and the APRA aim to complete the changes by the end of 2026. The amendments are expected to take effect in early 2027.

Revenue from audit work undertaken by the US Internal Revenue Service (IRS) fell by 35% to $6.5bn in fiscal year 2025 (FY25), the New York Times (NYT) reported, citing a Treasury Inspector General for Tax Administration (TIGTA) document.

The figure was $10bn a year ago. The downturn in audit proceeds followed workforce reductions introduced by President Trump at the start of his second term, the report added. The reduction led to the departure of approximately 30% of the agency’s audit-focused personnel.

The contraction in headcount was expected to constrain the federal government’s capacity to execute the labour-intensive examinations required to identify and collect overdue taxes from individuals and corporate entities.

According to the TIGTA, the IRS initiated 30% fewer individual audits in FY25 compared to the previous year.

Within one key operational unit, officials paused the launch of new tax audits for a six-month period because of uncertainty surrounding whether sufficient personnel were available to handle the caseload.

Because tax audits frequently take years to conclude, the broader budgetary consequences of the staffing changes may take time to fully materialise.

The NYT added that officials at the current administration have stated that technological tools including AI could enable the agency to identify audit targets more effectively.

They also told the publication that the use of technology will allow investigations to be conducted with fewer staff.

However, comprehensive public plans for these mechanisms have not been released.

Despite the sharp decline in revenue directly elicited from audits, other compliance operations remained relatively steady.

Collections resulting from mailed notifications and telephone communications regarding unpaid taxes were broadly unchanged. IRS has also reinitiated several programmes that were halted during the pandemic, the report added.

Total annual tax receipts also increased to a record $5.3tn over the last fiscal year.

Chartered Accountants Australia and New Zealand (CA ANZ) has announced its support for proposed reforms to expand the Tax Practitioners Board’s (TPB) enforcement powers.

However, the accounting body called for tighter safeguards around the board’s suspension powers.

In a submission to Treasury on draft regulations and determinations accompanying the reforms, CA ANZ said the expanded toolkit would allow the TPB to take more targeted action against different forms of misconduct.

The body also called for amendments to ensure interim suspension powers are used only where there is an immediate risk.

CA ANZ Tax, Superannuation and Financial Services leader Susan Franks said: “CA ANZ supports the expansion of the TPB’s sanctions toolkit. A broader range of sanctions will help ensure the TPB has proportionate and targeted responses available for different types of misconduct.

“The TPB’s proposed interim suspension power must be reserved for the most exceptional circumstances.

“Where a practitioner can be suspended without first being afforded natural justice, the threshold for exercising that power should be limited to cases involving an imminent risk of serious harm.

“Without that safeguard, practitioners could suffer significant and potentially irreversible damage to their business and reputation.”

CA ANZ said it looked forward to working with Treasury and the TPB to ensure the reforms balance enforcement with procedural fairness.

CA ANZ recently backed the Australian Government’s proposed consumer protection reforms, calling them a “significant response” to industry gaps.

The measures followed the collapse of the Shield and First Guardian Master funds, which wiped out A$1bn ($716m) in retirement savings and affected 12,000 Australians.