§ Lord Lucas of Chilworthasked Her Majesty's Government:
What difference, if any, they see between political negotiations conducted behind the closed doors of the Code of Conduct Group on harmful tax competition and international negotiations conducted in the more transparent arena of the Council of Ministers. [HL4613]
§ Lord McIntosh of HaringeyThe Council Conclusions of 9 March 1998, published in the Official Journal of the European Communities, state that the Code of Conduct Group is a group established by and set up within the framework of the Council. Its rules of procedure were agreed by the Council.
The Earl of Northeskasked Her Majesty's Government:
Whether the Governments of the Overseas Territories and the Crown Dependencies subscribe to the view that the negotiations being conducted in the Code of Conduct Group on harmful tax competition are "within constitutional arrangements." [HL4618]
§ Lord McIntosh of HaringeyThe UK Government are responsible for international relations of the UK's overseas territories and the Crown Dependencies.
The Earl of Northeskasked Her Majesty's Government:
Whether any existing tax measures of either the Crown Dependencies or the Overseas Territories have been referred to the Code of Conduct Group on harmful tax competition; and, if so, by the authority of which Government. [HL4619]
§ Lord McIntosh of HaringeyThe ECOFIN Council Conclusions of 9 March 1998 state that the Council 227WA "agrees that the work of the Code of Conduct Group shall be confidential".
The Earl of Northeskasked Her Majesty's Government:
What is their definition of the term "harmful tax competition" and how this differs from any definition of the term held by (a) other European Union Member States' Governments and (b) the European Commission; and [HL4615]
What is their definition of the term "tax co-ordination" and how this differs from any definition of the term held by (a) other European Union Member States' Governments and (b) the European Commission. [HL4617]
§ Lord McIntosh of HaringeyThe conclusions of the ECOFIN Council meeting on 1 December 1997 concerning taxation policy state that there is a "need for co-ordinated action at European level to tackle harmful tax competition in order to help achieve certain objectives such as reducing the continuing distortions in the single market, preventing excessive losses of tax revenue or getting tax structures to develop in a more employment-friendly way".
The Earl of Northeskasked Her Majesty's Government:
How they justify the view that the conclusions of the Code of Conduct Group on harmful tax competition will be on the one hand "not legally binding", and on the other "an international commitment which [the United Kingdom Government] expects to honour and expects other people to honour" (HM Treasury evidence to European Communities Committee, Sub- Committee A, 20 April, Q151). [HL4691]
§ Lord McIntosh of HaringeyThe Code of Conduct is a political compact by member states, meeting within the Council, to respond to the problem of harmful tax competition. The Code of Conduct Group was established by the Council to assess the tax measures that may fall within the scope of the Code. Paragraph 2 of the Council Conclusions of 9 March 1998, published in the Official Journal of the European Communities, states that its establishment is "without prejudice to the respective competences of Member States and the Community in the fields covered by the work of the Group".
The Earl of Northeskasked Her Majesty's Government:
Whether they will define the difference between unjustified and/or discriminatory state aids and reasonable tax allowance measures, regional or otherwise, as understood by (a) the United Kingdom Government, (b) other European Union Member States' Governments and (c) the European Commission. [HL4620]
§ Lord McIntosh of HaringeyArticles 87 and 88 of the European Communities Treaty set out the basis of the Community rules on state aid.
228WAState aid measures, including taxation schemes, may be approved by the European Commission in so far as they do not distort or threaten to distort competition between member states.