Sir A. Salterasked the Chancellor of the Exchequer whether he is informed of the stimulation of export trade in neighbouring countries by means of export subsidies and remission of taxes; and whether it is the intention of the Government to assist British traders to meet this competition by relieving them of the handicap of paying taxes in two countries?
§ Mr. C. Daviesasked the Chancellor of the Exchequer (1) whether he is aware of the terms of the agreement which has recently been signed between Sweden and the United States of America to avoid double taxation on profits on businesses and investments owned or conducted jointly in Sweden and America; whether it is the intention of His Majesty's Government to initiate negotiations with the United States of America for a similar agreement;
(2) whether he is aware that a treaty for the avoidance of double taxation between Germany and France was ratified on 22nd January last; and whether he is in a position to state whether he intends to try to achieve a treaty with similar objects between Great Britain and France?
§ Sir J. SimonI would point out that our law provides for arrangements on a reciprocal basis with foreign countries for relieving from double Income Tax shipping and air transport profits and profits derived from business carried on through certain agencies. A number of arrangements have been made under these provisions with foreign countries, including France, Germany, the Netherlands, Denmark, Norway, Sweden, Finland, Greece, Switzerland, the United States and Japan. The position of His Majesty's Government in regard to the extension of the scope of such arrangements to other 519W kinds of business profits was stated by the Financial Secretary to the Treasury in the course of the Finance Bill of 1937 on an amendment moved by my hon. Friend the Member for Darlington (Mr. Peat), and as at present advised I have nothing to add to that statement.