House of Commons Public Bill Committee Proceedings

House of Commons

Session 2006 - 07
Internet Publications
Other Bills before Parliament

5

House of Commons

Tuesday 15th May 2007

Public Bill Committee Proceedings

Finance Bill

(except Clauses 1, 3, 7, 8, 12, 20, 21, 25, 67 and 81 to 84, Schedules 1, 18, 22 and 23, and

New Clauses relating to Microgeneration)

[fourth and fifth SITTINGS]

Clauses 17 to 19, 22 and 23 Agreed to.

Schedule 3 Agreed to.

Clause 24 Agreed to.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Mr David Evennett

Withdrawn  38

Schedule  3,  page  90,  line  16,  after ‘payments’, insert ‘for a year of assessment’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Mr David Evennett

Not called  39

Schedule  3,  page  90,  line  19,  after ‘services’, insert ‘for that year of assessment’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Mr David Evennett

Negatived on division  40

Schedule  3,  page  90,  line  21,  leave out from ‘person’ to ‘the’ in line 22 and insert

‘whose sole or main business is the provision and facilitation of’.

Public Bill Committee Proceedings: 15th May 2007
6

Finance Bill, continued

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Mr David Evennett

Negatived on division  41

Schedule  3,  page  90,  line  23,  leave out ‘involved with the company’ and insert

‘regularly involved with all or most aspects of running the company on an ongoing basis’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Mr David Evennett

Not called  42

Schedule  3,  page  90,  line  24,  at end insert—

‘(1A)
In considering whether a company is a managed service company within the

meaning of subsection (1), no regard shall be had to any other companies with

which the MSC provider is involved’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Mr David Evennett

Not called  43

Schedule  3,  page  90,  line  35,  leave out ‘subsection’ and insert ‘subsections’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Mr David Evennett

Not called  44

Schedule  3,  page  90,  line  35,  after ‘(1)(d)’, insert ‘or (2)’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Mr David Evennett

Not called  45

Schedule  3,  page  90,  line  36,  leave out from ‘providing’ to end of line and insert

‘services of a nature provided by advisers in a professional capacity, including legal,

accounting and company secretarial advice.’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Mr David Evennett

Not called  46

Schedule  3,  page  90,  line  36,  at end insert—

‘(3A)
For the purposes of subsection 3, accounting advice includes, but is not limited

to, advice and assistance concerning:

Public Bill Committee Proceedings: 15th May 2007
7

Finance Bill, continued

(a)
preparation or provision of records, returns, financial statements, reports

or financial information concerning accounting;

(b)
auditing, insolvency or taxation matters;

(c)
communication and representations made on behalf of a client to third

parties in matters concerning accounting, auditing, insolvency or

taxation.

(3B)
The Treasury may by order provide for a non-exhaustive list of professional

services which fall within the meaning of subsection (3) and (3A) above.

(3C)
The Treasury may not make an order under subsection (3B) unless a draft of it has

been laid before and approved by a resolution of the House of Commons.’.

Mr Stephen Timms

Agreed to  97

Schedule  3,  page  90,  line  40,  leave out from ‘services);’ to end of line 42 and

insert—



‘(5)
Subsection (4) does not apply if the person or an associate of the

person—

(a)
does anything within subsection (2)(c) or (e), or

(b)
does anything within subsection (2)(d) other than influences

the company’s finances or activities by doing anything within

subsection (2)(b).’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Mr David Evennett

Not called  47

Schedule  3,  page  91,  line  2,  at end insert—

‘(3A)
An MSC provider may be a partner in a partnership (other than the individual

referred to in section 61B(1)(a)) and may, for the purposes of section 61B(1)(d),

carry on, through the partnership, the business of promoting or facilitating the

partnership to provide the services of individuals.’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Mr David Evennett

Not called  48

Schedule  3,  page  92,  line  2,  leave out ‘mentioned in section 61D(1)(b)’ and insert

‘which satisfies both section 61D(1)(b) and section 61D(1)(c).’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Mr David Evennett

Withdrawn  49

Schedule  3,  page  95,  line  45,  at end insert—

Public Bill Committee Proceedings: 15th May 2007
8

Finance Bill, continued

‘61K
Implementation, investigation and enforcement

(1)
The provisions of this Chapter may be administered and enforced only by officers

of the Revenue and Customs acting with the authority of the Commissioners for

Her Majesty’s Revenue and Customs.

(2)
A certificate of the Commissioners for HMRC stating that an officer of Revenue

and Customs has authority to act under this Chapter shall be conclusive evidence

of this fact.’.

Mrs Theresa Villiers

Mr Mark Hoban

Mr Paul Goodman

Mr Mark Francois

Mr David Evennett

Not called  82

Schedule  3,  page  96,  line  9,  leave out ‘an officer of Revenue and Customs

considers’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Mr David Evennett

Not called  50

Schedule  3,  page  96,  line  10,  after ‘Customs’, insert ‘, acting with the authority of

the Commissioners for Her Majesty’s Revenue and Customs,’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Mr David Evennett

Not called  51

Schedule  3,  page  96,  line  12,  at end insert—

‘(1A)
A certificate of the Commissioners for Her Majesty’s Revenue and Customs

stating that an officer of HMRC has authority to act under the regulations

provided for in subsection (1) shall be conclusive evidence of this fact.’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Mr David Evennett

Not called  52

Schedule  3,  page  96,  line  16,  leave out ‘encouraged, facilitated’ and insert ‘actively

encouraged or facilitated’.

Mr Stephen Timms

Agreed to  98

Schedule  3,  page  96,  line  17,  leave out ‘facilitated or otherwise’ and insert ‘or’.

Public Bill Committee Proceedings: 15th May 2007
9

Finance Bill, continued

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Mr David Evennett

Negatived on division  53

Schedule  3,  page  96,  line  20,  at end insert—

‘(2A)
No person shall fall within the scope of subsection (2)(c) above unless they knew

or should have reasonably been expected to know that the services of the

individual were being provided by a managed service company.’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Mr David Evennett

Not called  54

Schedule  3,  page  96,  line  20,  at end insert—

‘(2B)
Ordinary employees of the MSC provider shall not fall within the scope of

subsection (2). For the purposes of this subsection, “ordinary employees” means

employees who are not involved with organising, managing or directing the

overall activities of the MSC provider.’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Mr David Evennett

Not called  55

Schedule  3,  page  96,  line  20,  at end insert—

‘(2C)
An individual whose services are provided by the managed service company does

not fall within subsection (2) unless he knew or should have reasonably been

expected to know that his services were being provided by a managed service

company.’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Mr David Evennett

Negatived on division  60

Schedule  3,  page  96,  line  20,  at end insert—

‘(2D)
A person does not fall within subsection (2)(c) merely by virtue of contracting

with businesses who provide the services of individuals to it and which may be

MSCs.’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Mr David Evennett

Not called  61

Schedule  3,  page  96,  line  20,  at end insert—

‘(2E)
A person does not fall within subsection (2)(c) merely by virtue of carrying on a

business consisting only of placing individuals with persons who wish to obtain

Public Bill Committee Proceedings: 15th May 2007
10

Finance Bill, continued

their services (including by contracting with companies which provide those

services); but this subsection does not apply if the person, or an associate of the

person, does anything within any of the paragraphs (c) to (e) of subsection (2) of

section 61B.’.

Mr Stephen Timms

Agreed to  99

Schedule  3,  page  96,  line  21,  after ‘by’ insert ‘virtue of—

(a)
’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Mr David Evennett

Not called  56

Schedule  3,  page  96,  leave out line 22 and insert ‘services of a nature provided by

advisers in a professional capacity, including legal, accounting and company secretarial

advice.’.

Mr Stephen Timms

Agreed to  100

Schedule  3,  page  96,  line  22,  at end insert ‘, or

(b)
placing the individual with persons who wish to obtain the

services of the individual (including by contracting with the

MSC for the provision of those services).’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Mr David Evennett

Not called  57

Schedule  3,  page  96,  line  22,  at end insert—

‘(3A)
For the purposes of subsection 3, accounting advice includes, but is not limited

to, advice and assistance concerning:

(a)
preparation or provision of records, returns, financial statements, reports

or financial information concerning accounting;

(b)
auditing, insolvency or taxation matters;

(c)
communication and representations made on behalf of a client to third

parties in matters concerning accounting, auditing, insolvency or

taxation.

(3B)
The Treasury may by order provide for a non-exhaustive list of professional

services which fall within the meaning of subsection (3) and (3A) above.’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Mr David Evennett

Not called  58

Schedule  3,  page  96,  line  22,  at end insert—

‘(3C)
In determining the amount sought to be recovered under these provisions from

any person, regard must be had to the degree of involvement by that person in the

Public Bill Committee Proceedings: 15th May 2007
11

Finance Bill, continued

activities of the MSC, the running of the MSC or the provision of services of the

individual.’.

(3D)
Any notice given under this section must include details of all those persons under

subsection (2) from whom recovery is being, or has been, sought.

(3E)
The Treasury may specify by order the sequence in which categories of persons

against whom recovery will be sought under this section.

(3F)
HM Revenue and Customs may not pursue persons mentioned in subsection

(2)(c) under the provisions of this section unless, in the opinion of an officer of

Revenue and Customs—

(a)
it is impossible to recover the specified amount from persons mentioned

in paragraphs (a) and (b), or

(b)
it is impracticable to recover the specified amount from those persons.’.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Mr David Evennett

Not called  101

Schedule  3,  page  96,  leave out lines 35 and 36.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Mr David Evennett

Not called  59

Schedule  3,  page  96,  line  37,  after ‘subsection’, insert ‘(3B), (3E) or’.

Schedule, as amended, Agreed to.

Clause 26 Agreed to.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Mr David Evennett

Negatived on division  62

Schedule  4,  page  98,  line  34,  leave out from beginning to end of line 34 on page

100.

Mrs Theresa Villiers

Mr Mark Francois

Mr Mark Hoban

Mr Paul Goodman

Mr David Evennett

Not called  63

Schedule  4,  page  99,  line  11,  leave out ‘£25,000’ and insert ‘£100,000’.