Commentary on provisions of Act Section 16: Assignment of VAT
Section 16 makes amendments to the Scotland Act 1998 ("the Scotland Act") and to the Commissioners for Revenue and Customs Act 2005 ("the CRCA").
	Section 64 of the Scotland Act makes provision for the Scottish Consolidated Fund and for payments to be made into and from the fund. Section 16(2) inserts a new subsection, (2A), which requires that the Secretary of State pay into the fund any amounts payable in accordance with the terms of section 64A of the Scotland Act.
	Section 16(3) inserts a new section, section 64A, into the Scotland Act.
	Section 64A(1) provides that where there is an agreement between the Treasury and the Scottish Ministers for identifying an amount agreed to represent the standard rate of VAT attributable to Scotland for any period then an amount calculated in accordance with section 64A(3) is payable for that period.
	Section 64A(2) provides that where there is an agreement between the Treasury and the Scottish Ministers for identifying an amount agreed to represent the reduced rate of VAT attributable to Scotland for any period then an amount calculated in accordance with section 64A(4) is payable for that period.
	Section 64A(3) outlines the calculation of the first 10 percentage points of the attributable standard rate VAT.
	Section 64A(4) outlines the calculation of the first 2.5 percentage points of the attributable reduced rate VAT.
	Section 64A(5) provides that payment under section 64(2A) of the Scotland Act of an amount calculated pursuant to section 64A(3) or (4) is to be made in accordance with any agreement between the Treasury and the Scottish Ministers as to the time of payment or otherwise.
	Section 18 of the CRCA prohibits the disclosure, by Her Majesty’s Revenue and Customs ("HMRC") officials, of information held by HMRC in connection with its functions. Section 18(2) provides for exceptions to this prohibition and section 16(5) inserts a new subsection, (2)(k), which permits disclosure in connection with, or with anything done with a view to, the making or implementation of an agreement referred to in section 64A(1) or (2) of the Scotland Act.
	Section 16(6) inserts a new subsection, (2A), into section 18 of the CRCA. The new subsection prohibits further disclosure of information lawfully disclosed pursuant to section 18(1)(k) of that Act without the consent of the Commissioners of HMRC.
	Section 19 of the CRCA provides that it is an offence to disclose information in contravention of section 18(1) the CRCA. Section 16(6) amends section 19 to provide that it is also an offence to disclose information in contravention of section 18(2A) of the CRCA.