§ Mr. Peter BottomleyTo ask the Chancellor of the Exchequer what changes have been made to Government policy in relation to retrospective tax legislation since 6 June 1991.
§ Mr. DorrellGovernment policy in relation to retrospective tax legislation has not changed since 6 June 1991.
§ Mr. Peter BottomleyTo ask the Chancellor of the Exchequer what policy governs the Government's decision as to the timing of their retrospective measures.
§ Mr. DorrellThe Government propose tax legislation that has retrospective effect only after very careful consideration of all the circumstances. Any such proposal is then announced at the earliest suitable opportunity.
§ Mr. Peter BottomleyTo ask the Chancellor of the Exchequer (1) whether the protection in the Government policy in relation to retrospective tax legislation extends equally to taxpayers who have not themselves brought proceedings but(a) have entered into agreement with the Inland Revenue that the outcome of other proceedings of a private law nature shall be taken as determinative of their own dispute or (b) have formally endorsed other proceedings of a public law nature which as a matter of the law are taken as determinative of their own dispute, whether or not the Inland Revenue agrees;
(2) if it is his policy that taxpayers in dispute with the Inland Revenue should obtain immunity from retrospective legislation as from some particular point in legal proceedings; and if he will specify from which point in legal proceedings such immunity should take effect.
§ Mr. DorrellWhere, following a successful challenge in the courts, retrospective legislation is introduced to restore the previous understanding of the law, it has long been the Government's policy that the successful litigant should not be deprived of the benefit of the court judgment in his favour. Where other taxpayers have agreed with the Revenue that an action will be regarded as a test case and that they will also benefit from any decision against the Revenue, it is the Government's policy that those taxpayers should also not be affected by any retrospective amendment to the law.
§ Mr. Peter BottomleyTo ask the Chancellor of the Exchequer if Government policy in relation to retrospective tax legislation prevents the Government from introducing new measures for a retrospective change in the law in its own favour.
§ Mr. DorrellWhere it is discovered that the tax law does not have the effect that the Government and taxpayers generally thought it had, there are circumstances in which it is right to introduce legislation to restore the position retrospectively to what it was thought to be. This is done 379W only in exceptional circumstances and where the Government consider such action is necessary to protect the interests of the general body of taxpayers.
§ Mr. Peter BottomleyTo ask the Chancellor of the Exchequer if Government policy in relation to retrospective tax legislation applies to(a) public law proceedings, (b) private law proceedings, (c) appeals against assessment and (d) restitution claims.
§ Mr. DorrellThe application of the Government's policy will depend on the precise circumstances of any particular proceedings.