Schedule 6 - Accounting practice and related matters
Finance Bill
4:30 pm
Dawn Primarolo (Paymaster General, HM Treasury; Bristol South, Labour)
Before the Committee adjourned at 1 o’clock, I had just concluded my remarks about how avoidance causes economic distortion. In response to the hon. Member for Braintree (Mr. Newmark), I said that the corporate anti-avoidance provisions in the Finance Bill apply specifically to contrived schemes that are designed to decrease United Kingdom tax. Stopping that type of avoidance levels the playing field between compliant and non-compliant taxpayers, which is what we want to achieve.
The hon. Gentleman asked about securitisation companies. He expressed gratitude to the Government on behalf of that important industry for introducing a framework for the new tax regime for those companies under the Finance Act 2005. That is a good example of close collaboration between the Treasury, Her Majesty’s Revenue and Customs and the bodies in the area of international accounting standards. The hon. Gentleman then urged that progress be made in sorting out the new tax system. As he will know, the Finance Act 2005 allows regulations to be made. HMRC and the Treasury are studying a particular proposal that the industry has made in respect of the points he made, and expect to be in a position to respond soon to the industry’s suggestion.
I shall come back to my hon. Friend the Member for Wolverhampton, South-West (Rob Marris).