§ Mr. WinnickTo ask the Chancellor of the Exchequer when the arrangement for reducing tax liability by forming a company only for this purpose was first permitted. [46664]
§ Dawn Primarolo[holding answer 19 June 1998]: There has never been a bar on an individual forming a company to reduce their liability to tax. However, incorporation does impose various obligations.
§ Mr. WinnickTo ask the Chancellor of the Exchequer (1) if he will estimate the sum which the Treasury would receive if those who minimise their tax liability by forming a company only for this purpose were no longer able to do so; [46666]
(2) if he will estimate the number of those who minimise their tax liability by forming a company only for this purpose. [46667]
§ Dawn Primarolo[holding answer 19 June 1998]: Companies are formed for many different reasons and it is not possible to identify from tax records those where the only reason is the intention to minimise tax liability.