Clause 74 - Manufactured payments: general

Part of Finance Bill – in a Public Bill Committee am 3:15 pm ar 11 Mehefin 2013.

Danfonwch hysbysiad imi am ddadleuon fel hyn

Photo of Catherine McKinnell Catherine McKinnell Shadow Minister (Treasury) 3:15, 11 Mehefin 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?