Scottish Secretary Michael Moore told MSPs on the
Scotland Bill Committee
he did not believe Scotland would lose £8bn by implementing the new powers in the Scotland Bill on 14 December 2010.
Conservative MSP David McLetchie asked whether the new tax raising mechanism would result in an £8bn loss to the Scottish economy, as the SNP Government has suggested.
Mr Moore said the Scotland Office were currently scrutinising the figures but he did not believe they were "accurate" and he said they did not reflect other Scottish taxes that would be included in the new model.
The Scotland Bill contains powers which the Secretary of State for Scotland has described as "the largest transfer of fiscal powers since the creation of the UK."
It is a UK Government bill outlining new powers for the Scottish Parliament.
Chief among them is one which would allow Holyrood to raise or lower income tax by 10p in return for a lower block grant from Westminster.
The parliament would also be able to borrow up to £500m pounds over 4 years.
The legislation will also give MSPs the ability to control drink driving and speed limits.
The committee took evidence from David Gauke MP, Exchequer Secretary, HM Treasury, David Mundell MP, Parliamentary Under Secretary of State, and The Rt Hon Lord Wallace of Tankerness QC PC, Advocate General for Scotland, Scotland Office.