§ Mr. Tim SmithTo ask the Chancellor of the Exchequer whether the United Kingdom proposes to sign the joint Organisation for Economic Co-operation and Development and Council of Europe convention on mutual administrative assistance in tax matters which was opened for signature on 25 January.
§ Mr. Norman LamontEarlier this year, I invited representative bodies who had expressed an interest in this matter, together with any other interested parties, to express their views on whether the United Kingdom should sign this convention and, if so, with what reservations. I am grateful to those who responded and have given very careful consideration to all the views which were expressed.
The Government recognise the value which is rightly attached to international co-operation among fiscal 170W authorities and the need to make adequate and effective arrangements to this end which are fair to taxpayers and the Revenue authorities concerned. Such co-operation plays an important part in ensuring the proper determination of tax liabilities on an international level. However, in view of the existing provisions for mutual assistance in this area provided, for example, by our extensive network of double taxation treaties and our European obligations, we have concluded that the United Kingdom need not become a party to the convention.