HC Deb 14 July 1981 vol 8 cc1137-8
Mr. Lawson

I beg to move amendment No. 16, in page 8, leave out lines 19 to 24 and insert—

  1. '(b) the person making the supply and the person to whom it is made are connected, and
  2. (c) the person to whom the supply is made is not entitled under sections 3 and 4 of this Act to credit for all the tax on the supply,
the Commissioners may direct that the value of the supply shall be taken to be its open market value. (2) A direction under this paragraph shall be given by notice in writing to the person making the supply, but no direction may be given more than three years after the time of the supply. (3) A direction given to a person under this paragraph in respect of a supply made by him may include a direction that the value of any supply—
  1. (a) which is made by him after the giving of the notice, or after such later date as may be specified in the notice, and
  2. (b) as to which the conditions in paragraphs (a) to (c) of subparagraph (1) above are satisfied,
shall be taken to be its open market value.
(4) For the purposes of this paragraph any question whether a person is connected with another shall be determined in accordance with section 533 of the Income and Corporation Taxes Act 1970. (5) This paragraph does not apply to a supply to which paragraph 9A below applies.'.

Mr. Deputy Speaker

With this we are to take also Government amendments Nos. 17, 18, and 197.

Mr. Lawson

These amendments, too, follow the debate in Committee. What might be termed the anti-avoidance measures involved in what is now clause 14 were criticised in certain respects, although the intention of blocking this avoidance device was fully recognised. We reflected on the arguments that were advanced in Committee and have introduced a new formulation which we believe will meet the criticisms that were made upstairs. It will restore the right of appeal by individual taxpayers against any direction issued by the Commissioners under paragraphs 1 and 2 of schedule 3.

Amendment agreed to.

Amendments made: No. 17, in page 8, leave out lines 32 to 36 and insert—

  1. '(b) the person importing the goods and the person entitled to the price are connected, and
  2. (c) the person importing the goods is not entitled under sections 3 and 4 of this Act to credit for all the tax paid or payable by him on the importation,
the Commissioners may direct that the value of the goods shall be taken to be their value as determined in accordance with the said subsection (3). (2) A direction under this paragraph shall be given by notice in writing to the person importing the goods, but no direction may be given more than three years after the time of importation. (3) A direction given to a person under this paragraph in respect of goods imported by him may include a direction that the value of any goods—
  1. (a) which are imported by him after the giving of the notice, or after such later date as may be specified in the notice, and
  2. (b) as to which the conditions in paragraphs (a) to (c) of subparagraph (1) above are satisfied,
shall be taken to be their value as determined in accordance with section 11(3) of this Act.
(4) For the purposes of this paragraph any question whether a person is connected with another shall be determined in accordance with section 533 of the Income and Corporation Taxes Act 1970.'.

No. 18, in page 9, leave out lines 23 to 26.—[Mr. Lawson.]

Further consideration adjourned.—[Mr. Cope.]

Bill (as amended in the Committee and in the Standing Committee) to be further considered this day.

Mr. Deputy Speaker

Motion No. 4 on the Order Paper.

Mr. Freud

On a point of order, Mr. Deputy Speaker. The Orders of the Day and Notices of Motions clearly say that the Films (Quotas) Order would be debated.

Mr. Deputy Speaker

I cannot compel an hon. Member to move it.

Mr. Freud

Further to that point of order, Mr. Deputy Speaker. If it is not moved, presumably it will go to the Joint Committee on Statutory Instruments, which will have to table the motion. As that Committee meets on a Wednesday, there is no way in which the statutory instrument can be debated in this Session of Parliament. Perhaps the usual channels, who seem, with gross discourtesy, to have done a deal in some distant part of the House without notifying hon. Members, will explain why they thought it important enough to put this statutory instrument on the Order Paper but now think it so unimportant that it will not come up in this Session of Parliament.

Mr. Deputy Speaker

I understand that whether it goes to the Joint Committee on Statutory Instruments is a matter for the House to decide. It cannot go there without a decision by the House.

Mr. Freud

Cannot we be told why it has been withdrawn? The Minister is sitting on the Front Bench.

Mr. Deputy Speaker

It is not a matter to be debated.