Oil industry believes independence will lead to higher taxes Almost eight in ten oil executives believe taxes on the industry will rise in an independent Scotland. Four in ten opposed the creation of a Scottish oil fund to mitigate the risk of fluctuating oil prices, while nearly two-thirds believed independence would lead to greater regulation. However, a quarter said an oil fund should be set up even if the electorate votes No in next September's referendum. The survey of 137 senior figures in the oil and gas industry was carried out by professional services firm EY, in association with Aberdeen and Grampian Chamber of Commerce. The report, titled Grasping the Thistle, said: "Executives appear to expect that an independent Scotland would be unable to avoid increasing the burden on the sector, whatever might happen with general corporation tax rates." But it added there was an "apparent contradiction" between the industry's expectation that independence would lead to higher taxes and regulation and other findings in the survey which suggested the referendum was having little impact on key areas of business. Of those who were surveyed, 64% said to date the referendum had no impact on investment in the UK continental shelf. "If companies really were expecting taxes and regulation to increase in a year's time, then their behaviour in areas like UKCS investment would be changing now," the report said. The fact that the referendum is having little effect so far may suggest that most respondents continue to believe that independence is unlikely to come about. When asked if they supported the creation of an oil fund by the Scottish Government post independence, 39% of those questioned said no. Meanwhile, 19% wanted the Scottish Government to establish such a fund in the wake of a Yes vote while 17% said an oil fund for Scotland should be set up regardless of the outcome of that vote. A quarter of those surveyed said a fund for the UK should be established, regardless of what happens in the referendum. But of those who wanted to see an oil fund set up, only 27% said it should still be established if it meant higher taxes for the sector or cuts in public spending in the short term. When asked if they had enough information to form a view about how independence might impact on their business, 35% of those surveyed said "not at all" while 55% said they had some information but needed more. Only 10% felt they had they "right amount" of information. The report said this pointed to "the continued existence of a significant information gap" but it added there was still "plenty of time for this gap to be closed during the campaign." Colin Pearson, a tax partner at EY Aberdeen, said: "The current Scottish Government has consistently stated that taxes would be reduced generally or in some targeted fashion following a 'yes' vote to promote Scotland's economic prosperity. However, the results of our survey appear to suggest that oil and gas executives presently do not believe that this would apply to them. Mr Pearson said the creation of an oil fund "appears to have struck a chord with oil and gas industry leaders and there seems to be strong support for this proposition." He added: "This does not obviously translate into support for independence as there is a block of support for a UK fund. The UK Government may wish bear this in mind in the coming months while it considers its approach to the nation's political and fiscal future. A Scottish Government spokesman insisted there were "no plans to increase the overall tax burden on the industry." He said: "We welcome this contribution to the debate and we look forward to further engagement with the Aberdeen and Grampian Chamber of Commerce and the industry on how independence can benefit the oil and gas sector. The Scottish Government fully recognises the importance of North Sea oil and gas and with such huge investments being made in the North Sea it's little wonder companies expect Scotland's coffers to be overflowing. Scottish Ministers are clear that post-independence there are no plans to increase the overall tax burden on the industry and that no changes will be made to the fiscal regime without consultation.