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1185

 

House of Commons

 
 

Notices of Amendments

 

given on

 

Wednesday 13th June 2007

 

For other Amendment(s) see the following page(s) of Supplement to Votes:

 

1131

 

Consideration of Bill


 

Finance Bill, as amended, in the Committee and the Public Bill

 

Committee

 

Amendment of Provisional Collection of Taxes Act 1968

 

Mr David Cameron

 

Mr George Osborne

 

Mrs Theresa Villiers

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Mr David Gauke

 

NC1

 

To move the following Clause:—

 

‘(1)    

The Provisional Collection of Taxes Act 1968 (c. 2) is amended as follows.

 

(2)    

In subsection (4)(b), for the words “Standing Committee” there are substituted

 

the words “Public Bill Committee”.’.

 

Principles of good practice for retrospective taxation legislation

 

Mr David Cameron

 

Mr George Osborne

 

Mrs Theresa Villiers

 

Mr Mark Hoban

 

Mr Paul Goodman

 

Mr David Gauke

 

NC2

 

To move the following Clause:—

 

‘(1)    

A Minister in charge of a Bill [in either House of Parliament] must, before Second

 

Reading of the Bill—

 

(a)    

make a statement to the effect that, in his view, any retrospective taxation

 

provisions of the Bill are compatible with either of the relevant principles

 

of good practice (“a statement of compatibility”); or


 
 

Notices of Amendments: 13th June 2007                  

1186

 

Finance Bill, continued

 
 

(b)    

make a statement to the effect that, although he is unable to make a

 

statement of compatibility, the government nonetheless wishes the

 

House to proceed with the Bill.

 

(2)    

A statement under subsection (1) must be in writing and be published in such a

 

manner as the Minister making it considers appropriate.

 

(3)    

In this section, “retrospective taxation provisions” means provisions which—

 

(i)    

introduce any new tax, levy, impost or duty, or increase the rate or extend

 

the incidence of any existing tax, levy, impost or duty; and

 

(ii)    

take effect on a date earlier than the date on which the relevant enactment

 

enters into force.

 

(4)    

For the purpose of subsection (3) it is immaterial whether a Minister gives notice,

 

whether in Parliament or otherwise, of his intention to introduce a retrospective

 

taxation provision which takes effect on a date after the giving of that notice.

 

(5)    

In subsection (3)(i) “extend the incidence of any existing tax, levy, impost or

 

duty” includes the removal or attenuation of any relevant relief or drawback.

 

(6)    

In subsection (3)(ii) “take effect” includes the creation of a liability or obligation

 

to account for any increased charge to tax resulting from a provision of the kind

 

mentioned in subsection (3)(i), whether or not the date on which the increased

 

charge falls due for payment precedes the date on which the relevant enactment

 

is expressed to enter into force; and in this subsection “account for” includes any

 

decision by a company or business undertaking to absorb or pass on in the form

 

of higher customer prices or charges the additional costs to that company or

 

business undertaking arising from the increased charge to tax.

 

(7)    

“The relevant principles of good practice” mentioned in subsection (1) are—

 

(i)    

that it appears, whether as a result of a judgment given by a court or

 

otherwise, that some part of the law relating to taxation no longer

 

conforms to the reasonable expectations about its effect previously held

 

by taxation practitioners and that it is necessary to restore the position

 

retrospectively in order to protect the interests of the general body of

 

taxpayers;

 

(ii)    

that HMRC becomes aware of a new tax avoidance scheme and it is

 

necessary, in order to prevent a significant loss of tax revenue, to amend

 

the law retrospectively.

 

(8)    

In subsection (7) “taxation practitioners” includes the Treasury, HMRC, the

 

accountancy profession, professional tax advisers and groups representing the

 

interests of taxpayers; and “tax avoidance scheme” has the meaning given in the

 

Tax Avoidance Schemes (Prescribed Descriptions of Arrangements) Regulations

 

2004 or the Tax Avoidance Schemes (Prescribed Descriptions of Arrangements)

 

Regulations 2006.

 

(9)    

A taxation provision introduced under the Provisional Collection of Taxes Act

 

1968 is not to be treated as having retrospective effect for the purposes of this

 

section unless the date on which the relevant resolution of the House of Commons

 

under either section 1 or section 5 of that Act is expressed to take effect is a date

 

earlier than the date on which the resolution under section 1 or, as the case may

 

be, section 5 is passed.

 


 
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