English: As the power to vary income tax rates in Wales applies only to non-savings and non-dividend income, we heard that Wales will be particularly exposed to taxpayers mitigating their liability through switching from earnings to other forms of income. For example, those who are self-employed could respond to tax variations by incorporating their business, in order to pay corporation tax on profits and dividend savings income tax on the withdrawal of profits, instead of paying the Welsh rates of income tax on self-employed earnings. So, we recommend that the Welsh Government commissions research into the impact of mitigating personal income tax through incorporation and changing forms of income, especially given that a significant proportion of higher and additional-rate payers are employed in the private sector in Wales, and therefore capable, of course, of incorporating their activities. We also call on the Welsh Government to give further consideration to seeking the devolution of savings and dividend income to Wales and to assess the benefits and risks of securing this power. Finally, though we concluded our evidence gathering for this inquiry before the true extent of the COVID-19 pandemic was realised, it is clear that difficult decisions on taxation will need to be made in order to aid Wales's economic recovery. The Welsh Government needs to consider all economic levers at its disposal, and we urge the Welsh Government to develop policy options for the Welsh rates of income tax and consider contingencies to deal with adverse economic conditions and possible cuts in public spending. So, with those comments, I look forward, Deputy Llywydd, to hearing contributions from Members.
Welsh: Gan mai dim ond i incwm nad yw'n gynilion ac nad yw'n ddifidendau y mae'r pŵer i amrywio cyfraddau treth incwm yng Nghymru'n berthnasol, clywsom y bydd Cymru'n arbennig o agored i drethdalwyr yn lliniaru eu rhwymedigaeth drwy newid o enillion i fathau eraill o incwm. Er enghraifft, gallai'r rheini sy'n hunangyflogedig ymateb i amrywiadau treth drwy gorffori eu busnes, er mwyn talu treth gorfforaeth ar elw a threth incwm ar gynilion difidend wrth dynnu elw allan, yn hytrach na thalu cyfraddau treth incwm Cymru ar enillion hunangyflogedig. Felly, rydym yn argymell bod Llywodraeth Cymru yn comisiynu ymchwil i effaith lliniaru treth incwm bersonol drwy gorffori a newid mathau o incwm, yn enwedig o gofio bod cyfran sylweddol o'r rhai sy'n talu ar y gyfradd uwch ac ychwanegol yn cael eu cyflogi yn y sector preifat yng Nghymru, ac felly'n gallu corffori eu gweithgareddau wrth gwrs. Rydym hefyd yn galw ar Lywodraeth Cymru i roi rhagor o ystyriaeth i geisio datganoli incwm cynilion ac incwm difidend i Gymru ac asesu buddion a risgiau sicrhau'r pŵer hwn. Yn olaf, er i ni gwblhau ein gwaith o gasglu tystiolaeth ar gyfer yr ymchwiliad hwn cyn inni sylweddoli gwir raddfa pandemig COVID-19, mae'n amlwg y bydd angen gwneud penderfyniadau anodd ar drethiant er mwyn helpu adferiad economaidd Cymru. Mae angen i Lywodraeth Cymru ystyried yr holl ysgogiadau economaidd sydd ar gael iddi, ac rydym yn annog Llywodraeth Cymru i ddatblygu opsiynau polisi ar gyfer cyfraddau treth incwm Cymreig ac ystyried cynlluniau wrth gefn i ymdopi ag amodau economaidd niweidiol a thoriadau posibl mewn gwariant cyhoeddus. Felly, gyda'r sylwadau hynny, edrychaf ymlaen, Ddirprwy Lywydd, at glywed cyfraniadau'r Aelodau.