Part of Finance Bill – in a Public Bill Committee at 3:15 pm on 11 June 2013.
Catherine McKinnell
Shadow Minister (Treasury)
3:15,
11 June 2013
The Clause and schedule are related to the previous clause and are introduced to simplify the tax treatment of manufactured payment dividends for corporation tax purposes and all manufactured payments for income tax purposes. I think the Minister has already responded to the concerns that I have noted about the clause, in particular the 100 firms mentioned as being involved in the area, and how many are understood to have been pursuing avoidance schemes. Will the Minister clarify in relation to this particular measure whether the same response applies: that there has been one company since 2011 avoiding tax of around £50 million a year?
Will the Minister also comment on how widespread the abuse of complex existing manufactured payments rules has been? How widespread has the abuse of the general rule been? What has been the impact on the Exchequer overall of the use of those rules, given that the tax information and impact note suggests that it will help to close down avoidance opportunities that have arisen due to the very complex nature of the existing rules?
A parliamentary bill is divided into sections called clauses.
Printed in the margin next to each clause is a brief explanatory `side-note' giving details of what the effect of the clause will be.
During the committee stage of a bill, MPs examine these clauses in detail and may introduce new clauses of their own or table amendments to the existing clauses.
When a bill becomes an Act of Parliament, clauses become known as sections.
Ministers make up the Government and almost all are members of the House of Lords or the House of Commons. There are three main types of Minister. Departmental Ministers are in charge of Government Departments. The Government is divided into different Departments which have responsibilities for different areas. For example the Treasury is in charge of Government spending. Departmental Ministers in the Cabinet are generally called 'Secretary of State' but some have special titles such as Chancellor of the Exchequer. Ministers of State and Junior Ministers assist the ministers in charge of the department. They normally have responsibility for a particular area within the department and are sometimes given a title that reflects this - for example Minister of Transport.
A parliamentary bill is divided into sections called clauses.
Printed in the margin next to each clause is a brief explanatory `side-note' giving details of what the effect of the clause will be.
During the committee stage of a bill, MPs examine these clauses in detail and may introduce new clauses of their own or table amendments to the existing clauses.
When a bill becomes an Act of Parliament, clauses become known as sections.
