Bill Dodwell: Public contracts

Deloitte’s head of tax policy outlines the key points of government proposals to punish tax-avoiding businesses seeking public sector contracts

Chief secretary to the Treasury Danny Alexander has just announced new public procurement rules applicable to those supplying goods and services to the public sector under tenders issued from 1 April 2013.

The legal framework for public procurement is set out in a statutory instrument (S12006/5); its aim is compliance with EU law by ensuring that prohibitions drafted into a tender are neither arbitrary nor discriminatory. The idea now is that suppliers should not have a history of being engaged in tax avoidance – which they will need to certify. HMRC has issued draft guidelines.

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