Clause 32. — (Restriction of Certain Transactions Leading to Avoid Ance of Income Tax or Profits Tax.)

Part of Orders of the Day — Finance Bill – in the House of Commons at 12:00 am on 13 June 1951.

Alert me about debates like this

Photo of Mr Reginald Manningham-Buller Mr Reginald Manningham-Buller , Northamptonshire South 12:00, 13 June 1951

I beg to move, in page 25, line 42, to leave out from "'control')," to end of line 44, and to insert: means the power of a person to secure by means of the holding of shares or the possession of voting powers in or in relation to that or any other body corporate, or by virtue of any powers conferred by the articles of association or other document regulating that or any other body corporate, that the affairs of the first-mentioned body corporate are conducted in accordance with the wishes of that person. I move this Amendment with high hope that it will also receive sympathetic consideration. The Amendment seeks to deal with two points. The first is that the Bill as it stands legislates by reference to a definition of "control" to show what "control" means when it is used apart from the expression "central management and control." To find out, one has to turn up another Act and that is also very tiresome, particularly to lawyers.

This Amendment sets out the definition of "control" as in Section 68 of the Income Tax, 1945, with the only difference that it omits from the definition contained in Section 68 the reference to a partnership, which does not come within the scope of this particular Clause. Therefore, our Amendment makes it quite clear what is the definition but eliminates unnecessary verbiage. I move this Amendment in the hope that it will appeal to the right hon. and learned Gentleman, and I hope he will accept it as improving the meaning of this extremely bad Clause.