This report considers the tax implications of Scottish independence or further devolution. It addresses four overarching issues: the principles of taxation, addressing tax avoidance and evasion, development and implementation of tax systems, and managing institutional change in relation to tax systems. By way of literature review and interviews the report considers both the theoretical and practical implications of Scottish independence or further devolution for taxation in Scotland. It highlights key issues which need to be addressed in both scenarios as well as those issues which are specific to either devolution or independence. These issues include the suitability of the current tax system to Scotland; considerations involved in developing and administering a new tax system; the determining factors for designing a new system; the trade-offs and compromises involved; the time required for implementation; implementation issues; risks; educational needs to support a new system; compliance issues; and insights from other countries
