Schedule 19
Finance Bill
9:00 am
Ian Pearson (Economic Secretary, HM Treasury; Dudley South, Labour)
We believe that the legislation is an appropriate use of British power and, as I explained, that the UK’s tax system needs to reflect and respond to future changes in foreign tax systems. The hon. Gentleman will be aware of the regimes that may operate in tax havens.
We have never had to use the rule on transfer pricing, but we believe that it has acted as a deterrent. Amendment 169 would remove flexibility and curtail the Government’s ability to respond to changes in tax systems abroad, so I ask the hon. Gentleman to withdraw the amendment.