The Scottish Council for Voluntary Organisations (SCVO) has warned that the Calman Commission on Scottish Devolution’s proposals on charity law will create new complications rather than dealing effectively with the issues identified.

SCVO argues that important areas such as the role of the Inland Revenue and the operation of Gift Aid are not properly addressed in the Calman proposals.

Public concern about the status of charities in Scotland led to the current Scottish charity legislation.

After a great deal of public engagement and debate, the Scottish Parliament made a set of decisions in 2005 on how Scottish charities should operate and what the public benefit should be. Following this debate, discussion at Westminster led to different conclusions being drawn in the English and Welsh Charity Act of 2006.

SCVO argue these differences, such as Scotland's stronger and more rigorous line on the level of wider benefit to society that charities must deliver, reflect the distinct traditions and history of charity legislation in Scotland from England & Wales.

Lucy McTernan, deputy chief executive of SCVO, said "There are minor complications that arise from the different systems of registration of charities north and south of the border. There are more serious anomalies in the way the Inland Revenue views charities across the UK. Unfortunately what the Calman Commission is proposing is a muddle to fix this muddle, rather than making things clearer.

"What's vital in this debate is that public have faith in the legal status of charities, and it reflects their understanding of what charities should be. Scotland has, quite rightly in my view, taken a stronger line on the public benefit required of charities.

"We would welcome greater co-operation and discussion of charity law between Westminster and Holyrood, but believe that the wishes of the Scottish people, as evidenced by the recent and widely supported Scottish charity act, must be respected."