Finance (No. 2) Bill — House of Commons, 2018-02-21
Topic: Domestic Commerce
Rosalie Winterton (Labour, Centre-left): With this it will be convenient to discuss the following: New clause 4—Public register of entities paying the bank levy and payments made— "(1) Schedule 19 to FA 2011 (bank levy) is amended as follows (2) After paragraph 81, insert— "Part 11 Public register of payments 83 (1) It shall be the duty of the Commissioners for Her Majesty’s Revenue and Customs to maintain a public register of groups paying the bank levy and the amounts paid. (2) In relation to each group, the register shall state whether it is— (a) a UK banking group, (b) a building society group, (c) a foreign banking group, or (d) a relevant non-banking group (3) In relation to each group, the register shall state the amount paid in respect of each chargeable period (4) In relation to chargeable periods ending between 28 February 2011 and 31 December 2017, the Commissioners must make public the register no later than 31 October 2018 (5) In respect of subsequent chargeable periods, the Commissioners must make public the updated register no later than ten months after the end of the chargeable period."" This new clause requires HMRC to prepare a public register of banks paying the bank levy and the amount they have paid. New clause 5—Bank levy: Part 1 of Schedule 9: pre-commencement requirements— "(1) Part 1 of Schedule 9 shall come into force in accordance with the provisions of this section (2) No later than 31 October 2020, the Chancellor of the Exchequer shall lay before the House of Commons an account of the effects of the proposed changes in Part 1 of Schedule 9— (a) on the public revenue, (b) in reflecting risks to the financial system and the wider UK economy arising from the banking sector, and (c) in encouraging banks to move away from riskier funding models (3) Part 1 of Schedule 9 shall have effect in relation to chargeable periods ending on or after 1 January 2021 if, no earlier than 30 November 2020, the House of Commons comes to a resolution to that effect." This new clause requires the Government to provide a separate analysis of the impact of Part 1 of Schedule 9 nearer to the time of proposed implementation in 2021 and to seek the separate agreement of the House of Commons to commencement in the light of that review. Amendment 1, in schedule 9, page 134, line 2, at end insert— "34A After paragraph 81 insert— "Part 10 Review of entities on which the bank levy is charged 82 (1) Within six months of the passing of the Finance Act 2018, the Chancellor of the Exchequer shall undertake a review of the provisions in this Schedule defining which groups are covered by the bank levy (2) The review shall consider in particular— (i) the adequacy of those provisions in applying the bank levy to groups that are— (a) not a group in paragraph 4(2) and (b) derive their income from investments in the manner of a group in paragraph 4(2), (ii) the adequacy of the groups in paragraph 4(2) in charging the bank levy to lending and investment entities, (iii) the degree to which the groups in paragraph 4(2) reflect lending and investment entities that have entered into contracts with public sector bodies, (iv) the adequacy of the definition of "investment group" in paragraph 12(9) in reflecting lending and investment entities that have entered into contracts with public sector bodies, and (v) the revenue effects of changes to include lending and investment entities that have entered into contracts with public sector bodies within groups covered by the levy. (3) The Chancellor of the Exchequer shall lay a report of the review under this paragraph before the House of Commons as soon as practicable after its completion."" This amendment requires a review about the appropriate extent of the bank levy in terms of the lending and investment entities which it covers, considering the extent to which it covers PFI finance groups and assessing the revenue effects of such an extension. Amendment 5, page 134, line 6, leave out from "in" to end of line 7 and insert "accordance with the provisions of section (bank levy: Part 1 of Schedule 9: pre-commencement requirements)" This amendment is consequential on NC5. Amendment 2, page 134, line 10, at end insert— "37 The amendments made by paragraph 34A have effect from the day on this Act is passed." This amendment is consequential on Amendment 1. New clause 6—Analysis of effectiveness of provisions of this Act on tax avoidance and evasion— "(1) The Chancellor of the Exchequer must review the effectiveness of the provisions of this Act in accordance with this section and lay a report of that review before the House of Commons within six months of the passing of this Act (2) A review under this section must consider— (a) the effects of the provisions in reducing levels of artificial tax avoidance, (b) the effects of the provisions in combating tax evasion, and (c) estimates of the role of the provisions of this Act in reducing the tax gap in each tax year from 2018 to 2022." This new clause requires the Chancellor of the Exchequer to carry out and publish a review of the effectiveness of the provisions of the Bill in tackling artificial tax avoidance and tax evasion, and in reducing the tax gap. Amendment 3, in schedule 8, page 103, line 41, at end insert— "21A After section 461 (counter-acting effect of avoidance arrangements) insert— "Chapter 11 Review 461A Review (1) Within six months of the passing of the Finance Act 2018, the Chancellor of the Exchequer shall undertake a review of the effects of amending the operation of this Part in relation to the excess profits of PFI companies (2) For the purposes of the review under this section, it shall be assumed that the operation of this Part would be amended so as to— (a) deduct the uncompensated excess profit amount of PFI companies from the aggregate of the interest allowances of the group for periods before the current period so far as they are available in the current period for the purposes of calculating the interest capacity of a worldwide group under section 392 (the interest capacity of a worldwide group for a period of account), (b) provide that, for groups that contain a PFI company, the uncompensated excess profit amount for a period is equal to the group excess profit amount less the aggregate amount by which the group’s taxable profit has been reduced in prior periods as a result of such provisions, (c) provide that the group excess profit amount for any period will be the aggregate PFI excess profit amount for each PFI company in the group, and (d) provide that the PFI excess profit amount for a PFI company for a period will be the amount by which the internal rate of return on shares and related party debt in that company (from inception to the end of the previous accounting period) exceeds the internal rate of return set in the relevant PFI contract or, if no such return was specified, 10% (3) For the purposes of this section, "a PFI company" means a company which has entered into a contract with a public sector body under the Private Finance Initiative or the PF2 initiative (4) The Chancellor of the Exchequer shall lay a report of the review under this section before the House of Commons as soon as practicable after its completion." This amendment requires a review about the effects of making provision to discount the excess profits of a PFI company for the purpose of calculating the aggregate of the interest allowance of worldwide groups in the provisions of Part 10 of the Taxation (International and Other Provisions) Act 2010. Amendment 4, page 105, line 17, at end insert— "26A The amendments made by paragraph 21A have effect from the day on this Act is passed." This amendment is consequential on Amendment 3.