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Finance Act 2008

Treasury written question – answered on 28th June 2012.

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Photo of Mike Freer Mike Freer Conservative, Finchley and Golders Green

To ask the Chancellor of the Exchequer

(1) how much revenue HM Revenue and Customs estimates will be raised in 2012-13 due to the provision of section 58 of the Finance Act 2008;

(2) what effect he estimates the bankruptcy of individuals required to pay tax retrospectively under section 58 of the Finance Act 2008 will have on HM Revenue and Customs revenues.

Photo of David Gauke David Gauke The Exchequer Secretary

UK residents are taxable on their worldwide income wherever it arises, including situations where it arises by way of foreign partnerships. Section 58 of Finance Act 2008 was enacted to help put that beyond doubt and in so doing, made clear that a wholly artificial tax avoidance scheme involving a foreign partnership comprised of foreign trustees did not work. The total tax at stake in respect of this scheme is estimated to be £230 million.

Does this answer the above question?

Yes4 people think so

No42 people think not

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Rob Chidlow
Posted on 30 Jun 2012 1:46 pm (Report this annotation)

The response does not fully answer the question posed - specifically (2). There has been no acknowledgement of part (2) never mind any answer.

Ian Jones
Posted on 30 Jun 2012 7:38 pm (Report this annotation)

The response does not answer either question. The questioner specifically asked in question 1 for an estimate of funds raised in 2012/2013.
The minister has provided an estimate of total tax at stake.
There was no attempt to answer question 2.