Finance (No. 2) Bill — New Clause 29 — Review of Tax Avoidance Measures — 20 Apr 2021 at 16:15

The majority of MPs voted not to require a report on the impact of measures intended to reduce the evasion and avoidance of tax.

MPs were considering the Finance (No. 2) Bill.^[1][2][3]

The proposed new clause rejected by a majority of MPs in this vote was titled: Review of tax avoidance measures and stated:

• “(1) The Chancellor of the Exchequer must review the impact of sections 117 to 121 and Schedules 29 to 32 of this Act and lay a report of that review before the House of Commons within six months of the passing of this Act, and then annually for five further years.
• (2) A review under this section must estimate the expected impact of sections 117 to 121 and Schedules 29 to 32 on—
• (a) levels of tax avoidance,
• (b) levels of tax evasion, and
• (c) reducing the tax gap in each tax year from 2021-22 to 2025-26.”

The rejected new clause was accompanied by the following explanatory statement from its proposer:

• This new clause would require the Government to review the impact of the provisions relating to tax avoidance and publish regular reports setting out their findings.

Clauses 117-120 provided for sanctions for those carrying on a business as a promoter of tax avoidance schemes, the disclosure tax avoidance schemes, penalties for enablers of defeated tax avoidance legislation, the operation of the general anti-abuse rule. Clause 121 required licencing authorities for taxis and scrap-yards to provide advice on tax requirements, and conduct a "tax-check", on applicants.^[2][3]

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• [1] Parliament's webpage on the Finance (No. 2) Bill, Parliament.uk
• [2] The Finance (No. 2) Bill (as introduced 11 March 2021), Parliament.uk
• [3] Explanatory notes to the Finance (No. 2) Bill, Parliament.uk

Debate in Parliament |