UK companies may be able to submit and pay tax accounts in euros under provisions introduced in the finance bill.
The prospect emerged after a bitter battle in the Commons committee handling Budget legislation, over the extent of power available in making tax regulations without seeking approval from parliament.
Tory MPs claimed order-making powers which had previously required prior Commons approval were being extended to enable the government to introduce tax-making powers to support the euro.
Shadow chief secretary David Heathcoat-Amory said that Treasury changes to taxation had to be confirmed by a resolution of the Commons within a limited period.
Liberal Democrat spokesman John Burnett protested the government was seeking deeply objectionable ‘carte blanche power to impose charges to taxation’.
Tory MP Nick St Aubyn claimed the European Commission could seek, and the government could impose, a European-wide withholding tax through this procedure.
He warned: ‘The consequences for our economy, particularly for our vital interests in finance and in the City, would be serious.’
Labour MP Ross Cranston said it was a modest proposition and Tory fears should be taken with a pinch of salt.
Crowe Clark Whitehill , the top 20 accountancy firm, has announced the promotion of Chris Mould to partner
The latest opinions from Accountancy Age on Making Tax Digital, and outline plans to evolve the UK's corporate governance regime
Five million taxpayers are ow using digital personal tax accounts (PTA) as part of the making tax digital strategy, HMRC said
UK-based non-doms have paid ten times more tax than the average taxpayer, raising concerns over the Brexit impact on non-dom contributions and therefore, the economy