Examination of Witnesses (Questions 560-564)
28 JANUARY 2004
RT HON
KEITH HILL
MP, MS ANNE
KIRKHAM AND
MR JEFF
HOLLINGWORTH
Q560 Chairman: But it is your money that
is being—
Keith Hill: I have prepared for
this one, Chairman. They have given a preliminary opinion that
a VAT efficiency arrangement entered into by some transfer landlords
impacts on corporate tax liability. My understanding is that there
are ongoing discussions with the consultancy firm that originated
the VAT efficiency arrangement and the Inland Revenue, at which
my Department and the National Housing Federation have been represented.
I can assure the Committee that I am keeping in touch with this
matter as it progresses.
Q561 Chairman: Any ideas when it will
be resolved?
Keith Hill: No immediate idea
but we are aware that this is a matter of concern and I can assure
you that a beady eye is being kept on this.
Q562 Chairman: It is all right having
a beady eye but for some of these transfer companies it does have
a considerable impact on their business.
Keith Hill: Yes. I was not seeking
in the least to be flippant.
Q563 Chairman: I was not suggesting that.
I was just suggesting that we need to have some dates as to when
you might have this resolved.
Keith Hill: I have not got any
dates but I give you the assurance that we are aware of the urgency
of the matter.
Q564 Chairman: On that note, can I thank
you very much for your evidence.
Keith Hill: Thank you very much
indeed.
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