Clause 294 - Duty of parties to notifiable arrangements not involving promoter

Finance Bill – in a Public Bill Committee at 6:00 pm on 22nd June 2004.

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Amendment made: No. 562, in

clause 294, page 243, line 1, leave out 'in the prescribed manner'.—[Dawn Primarolo.]

Question proposed, That the clause, as amended, stand part of the Bill.

Photo of Mr Howard Flight Mr Howard Flight Shadow Chief Secretary To the Treasury, Economic Affairs, Shadow Chief Secretary to the Treasury

The provisions, as described, should be targeted at least initially at marketed schemes that are being promoted. The clause imposes an obligation on a taxpayer who enters into arrangements without the involvement of outside advisers. Such an obligation should be limited to his final ordinary, self-assessment requirements, and the clause illustrates the fundamental point that I have been trying to make throughout, namely that the requirements have moved well wide of the reporting of unacceptable schemes.

Photo of Rob Marris Rob Marris Labour, Wolverhampton South West

I am surprised at the hon. Gentleman's remarks, because the second word in the clause is ''person'', and that can apply to a company. A company may have in-house advice and no external promoter, but with in-house advice it may be setting up a tax-avoidance scheme that could and should be notifiable. The clause would cover that, and the clauses relating to promoters that we discussed earlier would not.

Photo of Mr Howard Flight Mr Howard Flight Shadow Chief Secretary To the Treasury, Economic Affairs, Shadow Chief Secretary to the Treasury

I accept that ''person'' could mean a company. However, I was seeking to make a point about a person as an individual, and not about in-house arrangements.

Question put and agreed to.

Clause 294, as amended, ordered to stand part of the Bill.