The amendments make detailed corrections to the numbering in the clause of two cross-references to existing provisions in the Income and Corporation Taxes Act 1988. The first amendment ensures that the transfer pricing rules work appropriately where trading stock is transferred from one company to an associated person at less than an arm's-length price. The amendment corrects the problem by altering the existing paragraph 6(3)(a) to paragraph 6(2)(a) of schedule 28AA to the 1988 Act, to which new paragraph 6A should have referred.
The second amendment corrects a similar cross-reference to the controlled foreign company rules by changing the reference in new paragraph 6B(1)(c) to section 747(3) of the 1988 Act, which is the relevant part of the controlled foreign company rules.
Unfortunately those errors have only just been identified. They must be corrected in order for the clause to have its intended effect, and I apologise to hon. Members for the need to amend the Bill as published. It needed to be done immediately, as they were straight errors, and I hope that with the indulgence of the Committee the amendments will be accepted.
I accept the Paymaster General's apology. I am sure that errors of that nature do occur, and having examined the potential impact of the amendment prior to our deliberations, we fully accept that the purpose is solely to correct errors.
Amendment agreed to.
Amendment made: No. 74, in
Clause 32, as amended, ordered to stand part of the Bill.