(except clauses 4, 5, 20, 28, 57 to 77, 86, 111 and 282 to 289, and schedules 1, 3, 11, 12, 21 and 37 to 39) - Clause 30 - Provision not at arm's length: transations between UK taxpayers
Finance Bill
2:30 pm
Ms Dawn Primarolo (Paymaster General, HM Treasury; Bristol South, Labour)
Transfer pricing regulations and tax guidance are not the subject of amendments to the treaty. As I explained this morning, the UK has operated those provisions for some time, following the principles laid down and recommended by the Organisation for Economic Co-operation and Development. The Inland Revenue operates them with some aplomb. Transfer pricing regulations and rules are about insuring and protecting the corporate tax base of this country. As I said a number of times this morning, the Government and the Inland Revenue considered that our legislation was compatible, but we also recognised that it was essential, because of the response of business and its view that there was uncertainty, that we put these matters beyond doubt. That is what clauses 30 to 37 do.
The Government have repeatedly made clear their views on tax harmonisation. On behalf of the Government, I have in various Committees of this House and in different debates made it clear that they do not subscribe to tax harmonisation and that they continue to argue in every forum for the right of member states to determine their own tax rates.
As tempted as I am to probe whether the hon. Gentleman may be more at ease on the Government Benches with regard to policies on tax and the European Union, I fear that you will say that I am going beyond the scope of the clause, Sir John. Perhaps I should stick to clause 30, unless the hon. Gentleman wishes to stand up and declare himself so in support of this Government that we can welcome him to our Benches.