Schedule 8 - Loan relationships: miscellaneous amendments
Finance Bill
10:15 am
Ms Dawn Primarolo (Paymaster General, HM Treasury; Bristol South, Labour)
In earlier debates, the hon. Gentleman raised the spectre of the ECJ, saying that its decisions could impinge on the UK corporate tax system. What I am saying to him is that the view of the Government—regardless of whether he thinks that it is a debatable view—is that the case that he cites is not relevant in those circumstances for the reasons that I have given.
I return to the major point. The proposals ensure that the full amount of commercial profit is taxed and that the full amount of any commercial loss is recognised in the accounting period prior to the company going offshore. That is interesting. We can discuss the views of various members of the Committee about whether the ECJ decision in the French case will impinge on it, but the advice that the Department has given me is very clear. I have explained the principles. I understand the concerns that the Law Society and others have expressed, but again I assert that the issues that have been raised are not relevant.