HC Deb 07 August 1975 vol 897 cc710-1
8. Mr. Dalyell

asked the Chancellor of the Exchequer when he hopes to introduce a double taxation relief agreement with Brazil.

Mr. Denzil Davies

As soon as current negotiations with Brazil have been brought to a satisfactory conclusion.

Mr. Dalyell

Byzantine though the complexities are, is it understood that other countries seem to have overcome the difficulties, especially the Germans and the Japanese, and that we are at something of a disadvantage in this important market? Is there any chance of settling this question before the Brazilian Foreign Minister arrives on 21st October?

Mr. Davies

I cannot comment on the last part of my hon. Friend's question. The other countries which have reached agreements have a system of double taxation which is different from ours. We give credit against credit. They tend to exempt foreign income completely. The basis of our system has been that we give maximum credit. If we accept the Brazilian proposals—and we are still considering them very seriously—they will have implications for double taxation treaties that we have with other countries.

Mr. David Howell

Is the Brazilian rate of inflation higher or lower than ours?

Mr. Davies

I have no idea.

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