Alex Salmond has apologised to the Scottish Parliament for not keeping MSPs informed about the loss of the tartan tax powers during first minister's questions on 25 November 2010.
All the major opposition party leaders joined forces to press the First Minister on the issue.
Mr Salmond's apology followed the Finance Secretary John Swinney's apology after the government was accused of misleading Parliament.
He said he fully supported Mr Swinney who was attempting to solve a problem which existed before they came to power.
The first minister said: "I believe John Swinney was right to apologise to the Parliament for not bringing these matters for Parliamentary decision.
"I join in that apology."
Scottish Labour leader Iain Gray branded the SNP administration an "incompetent shambles" and said ministers had "secretly stopped spending money on a tax power this parliament should have".
Scottish Conservative leader Annabel Goldie said Mr Salmond`s apology was "less than convincing".
Tavish Scott, the Scottish Liberal Democrat leader asked the first minister if he would refer John Swinney to his Independent Advisers George Reid and Lord Steel.
Mr Salmond said he would consider all letters he received on the issue.