HC Deb 13 February 2004 vol 418 cc113-4W
Mr. Drew

To ask the Chancellor of the Exchequer (1) what estimate he has made of the number of close companies that may currently be operated with the primary purpose of reducing owners' personal tax liability; [151943]

(2) what estimate he has made of the loss to the Treasury from close companies that may currently be operated with the primary purpose of reducing owners' personal tax liability. [151944]

Dawn Primarolo

The vast majority of companies are run with the primary purpose of generating profits for shareholders, and a wide variety of strategies might be employed to minimise owners' tax liabilities. Consequently, it is impossible to say how many close companies are operating with the primary purpose of reducing owners' personal tax liability.

Mr. Hunter

To ask the Chancellor of the Exchequer what estimate he has made of the number of close companies which may operate with the primary purpose of reducing their owners' personal tax liability; and what value of tax revenues he estimates may thus be lost to the Exchequer. [154863]

Dawn Primarolo

The vast majority of companies are run with the primary purpose of generating profits for shareholders, and a wide variety of strategies might be employed to minimise owners' tax liabilities. Consequently, it is impossible to say how many close companies are operating with the primary purpose of reducing owners' personal tax liability or estimate the tax and national insurance that might be lost from such companies.

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