Clause 48 - Disclosure of information contained in land transaction returns
Finance Bill
2:45 pm
Stephen Williams (Bristol West, Liberal Democrat)
Just for novelty I thought that I would say something.
We share the misgivings of the Conservative Opposition and wish to probe the Government's intention behind the insertion of new section 78A(1)(d) into the Finance Act 2003. I think the hon. Member for Cities of London and Westminster made a passing reference to Trafalgar earlier this afternoon. Of course, Nelson's fleet was partially financed by an innovation of William Pitt called income tax, which was so unpopular with our predecessors that they insisted that no official of the Crown should be privy to every source of an individual taxpayer's income. That is largely why we have the schedule system of income tax that is to this day remains relevant in corporation tax. However, it looks like the subsection sweeps away the important principle that information should be provided by a taxpayer to the Government for a defined and narrow purpose, and for that purpose only.
It is a puzzle why new section 78A(1)(a), (b) and (c) narrowly define which officials of the Valuation Office Agency should be allowed to have this information, and why the Government feel it necessary to add a broad scope under paragraph (d) for information to be provided to all other persons whom the Treasury may prescribe. We already know that many taxpayers and citizens are sceptical of official forms that they have to fill in for the Government. For example, people are often reluctant to give full details on census returns because they are suspicious of the use that government will make of it. The clause is another example of that. As the hon. Member for Rayleigh said, it appears to give the Government very wide powers to use information for whatever future purpose they might determine.