Clause 226

Part of Finance Bill – in a Public Bill Committee am 3:15 pm ar 20 Mehefin 2013.

Danfonwch hysbysiad imi am ddadleuon fel hyn

Photo of David Gauke David Gauke The Exchequer Secretary 3:15, 20 Mehefin 2013

Let me deal directly with those questions. The hon. Gentleman asked about the 10-year maximum deferral period—whether that amounts to an unjustified restriction on companies’ treaty rights—and the concern about whether the clause goes far enough to comply with EU law. We believe that it does; the 10-year deferral period allows business sufficient time to manage issues of cash flow while providing HMRC with certainty and stability in the collection of taxes. The changes are appropriate and proportionate to the objective recognised by the European Court of safeguarding the balanced allocation of powers of taxation between the member states.

We listened carefully to the views of interested parties over the course of the consultation and took on board their recommendations where appropriate. I hope that hon. Members are reassured by that response.