Finance (No. 2) Bill
The following is an extract from the Finance (No. 2) Bill debate on clause 94 on 11 January.
Legal interpretation tax losses arise when businesses take a different view from HMRC of how the law should be applied, resulting in a different tax outcome. This issue has proven stubborn and difficult to tackle. Disputes often arise late in the day and are not
identified in time for formal compliance enquiries to be undertaken, resulting in irrecoverable losses to the Exchequer. The new notification requirement will tackle the legal interpretation tax gap in a well-targeted and proportionate way, raising £150 million over the next five years, while driving positive behavioural change.
[Official Report, Finance (No. 2) Public Bill Committee, 11 January 2022, Vol. 706, c. 106.]
Letter of correction from the Financial Secretary to the Treasury:
An error has been identified in my statement.
The correct information should have been:
[Official Report, Finance (No. 2) Public Bill Committee, 11 January 2022, Vol. 706, c. 106.]
Letter of correction from the Financial Secretary to the Treasury:
An error has been identified in my statement.
The correct information should have been:
Legal interpretation tax losses arise when businesses take a different view from HMRC of how the law should be applied, resulting in a different tax outcome. This issue has proven stubborn and difficult to tackle. Disputes often arise late in the day and are not identified in time for formal compliance enquiries to be undertaken, resulting in irrecoverable losses to the Exchequer. The new notification requirement will tackle the legal interpretation tax gap in a well-targeted and proportionate way, raising £130 million over the next five years, while driving positive behavioural change.