Clause 163 - Avoidance affecting proceeds
Finance Bill
5:15 pm
Mr Adam Price (Carmarthen East and Dinefwr, Plaid Cymru)
Perhaps the Paymaster General would give her response to the criticism that the definition of tax avoidance scheme under the clause is too broad. It defines a tax avoidance scheme or arrangement as one in which the main purpose, or one of the main purposes, is the obtaining of tax advantage by the taxpayer. How one defines what is the main purpose seems to have been left rather open-ended. For instance, it could be possible to argue that an arrangement has an improvement of the tax position as a purpose, but it was not the main purpose of the arrangement. There could be all sorts of debate about that. Would it not be preferable to define a tax avoidance scheme as one in which the sole or main purpose was the obtaining of the tax advantage?