Clause 19 - Disclosure of VAT avoidance schemes
Finance Bill
5:45 pm
Mr John Healey (Economic Secretary, HM Treasury; Wentworth, Labour)
As the right hon. Gentleman would expect, we make the normal checks and assessments of that in making such a firm statement and declaration. The obligations that we propose in clause 19 and schedule 2 are proportionate in terms of a response to the loss of revenue that is arising from not identifying businesses that have implemented VAT avoidance schemes and from identifying them too late.
In so far as the additional burdens imposed on the taxpayer are concerned—the hon. Member for Yeovil was concerned about this—I reassure the Committee that article 22(8) of the sixth directive authorises such obligations. The proposed de minimis thresholds will limit the impact of those additional obligations and assist in supporting their proportionality.
Finally, I mention the specific point about how businesses will know if the penalty will be imposed. If, as part of its normal assurance work, Customs finds that a business has not disclosed or notified as it should, Customs will issue an assessment for the penalty. It will do so, as normal, by sending a notice in writing by post. The business will then have, as at present, the right to appeal against the imposition of the penalty and against its amount.
On that basis, I hope that the Committee will give the clause and, when we come to it, the schedule, its support.
Question put and agreed to.
Clause 19 ordered to stand part of the Bill.
Further consideration adjourned.—[Jim Fitzpatrick.]
Adjourned accordingly at eleven minutes to Six o'clock till Tuesday 11 May at half-past Nine o'clock.