Written question asked by Lord Oakeshott of Seagrove Bay (Liberal Democrat), in the House of Lords. It was answered by Lord Davies of Oldham (Labour) on Wednesday, 9 July 2008.

Revenue and Customs: Varney Report

Question: asked Her Majesty's Government:Whether they take into account unacceptable tax planning and behaviours, as set out in HM Revenue and Customs' Varney report, in determining public procurement policy; and, if not, whether they will consider how this could be done.

Answer: Public procurement is regulated by the Public Contracts Regulations, which implement the EU Public Procurement Directive. The regulations contain provisions that allow public authorities to seek information on bidders' tax payments and to exclude them if they have not met their obligations. Advice has also been given to purchasing authorities that they may make it a contract condition, notified in advance when advertising the contract, that the successful bidder will be prohibited from using particular tax arrangements, including offshore tax havens, provided such a restriction would not discriminate against other bidders from the EU and other countries which have access agreements under the World Trade Organisation government procurement agreement.

Secondary information