Clause 6 - Accounts
Horserace Betting and Olympic Lottery Bill
Public Bill Committees, 20 January 2004, 2:30 pm
Mr Richard Caborn (Minister of State (Sport and Tourism), Department for Culture, Media & Sport; Sheffield Central, Labour)
The clause provides that the accounts of the Tote at the time of dissolution are to be treated as the accounts of the successor company. The purpose is to provide for continuity of the accounting process in the transfer of ownership. That is in line with the Government's intention to treat the successor company as if it were the Tote in all respects, including for tax purposes. That has crucial consequences. In particular, subsection (5) allows the successor company to treat the Tote's accumulated realised profits as its own. That will enable the successor company to issue dividends if it has accumulated realised profits to distribute.
The clause therefore makes the necessary provision for the accounting procedures that will enable the Tote to develop commercially as Government policy intends.
Question put and agreed to.
Clause 6 ordered to stand part of the Bill.