That is an interesting point, but I do not believe that the trust that is necessary between the bodies being consulted and whoever is consulting them will be strengthened by the fact that they are being consulted only when the structure and philosophy of legislation has already gone quite a long way down the road.

Let me say a bit more about philosophy. Rob Marris made a valid distinction between the philosophical differences between the approaches to the clause adopted by the two sides of the Committee which, I think, are exemplified by paragraphs 23 and 24 of the explanatory note on clause 92. Paragraph 24 establishes what we consider to be the better principle-based approach in stating:

"Ensuring appropriate tax accounting arrangements are in place is no more than compliant companies will be doing already."

There are two points to be made about that.

"Ensuring appropriate tax accounting arrangements are in place" is the principle that we would expect to underlie the clause, while the words

"is no more than compliant companies will be doing already" raise the question of why the clause is needed at all. What evidence will there be of the number of non-compliant companies, and how is that number to be established?

Paragraph 23, which the hon. Gentleman quoted, states:

"Currently, there is no legal obligation on any particular director...to ensure that the company has appropriate tax accounts arrangements."

To me, that illustrates a tendency towards a rules-based system which, in my view, has a number of negative effects on companies' positive approach to organising their affairs. I am in the principles-based camp; I do not think that we should tie things up unnecessarily.

I wish to turn to the Sarbanes-Oxley Act comparison, because a number of issues arise there. Given that a comparison has been made with that measure and that reliance has been placed on the experience of it, I wonder whether any reasonably substantial and detailed work has been done to examine its effects. It is fine to talk in terms of generalisations and broad comparisons, but we need detailed experience if we are going to rely on it. We have seen one aspect of how that measure could materially affect companies: the additional costs and obligations that it puts on them. I understand that the accounting profession takes the firm view that additional costs arise from the measure.

The other issue that Sarbanes-Oxley raises has already been touched on in relation to materiality. The Act introduced something related to financial accounting rather than to tax accounting. As I understand it, built into that system is a concept of materiality. We need an indication from the Minister as to whether we are now accepting the concept of materiality in tax returns as well as in financials.

It would be useful to understand a bit better the way in which what is required by the clause will interact with the existing accounting framework. Most accounting systems comply with UK generally accepted accounting principles, but are we now saying that changes will be needed to UK GAAP to reflect the tax aspects of the measure? Are we saying that, for tax purposes, we will need additional requirements above UK GAAP? The measure does not address the question of integration within one system and how we judge, in terms of the prospect for revenues, other accounting regulations—not just UK GAAP but overseas regulations.

For the reasons that I and that many hon. Members have given in the light of the uncertainty surrounding the clause, I support the amendment.