HC Deb 17 November 1992 vol 214 c112W
Mr. David Nicholson

To ask the Chancellor of the Exchequer if he will make it his policy in his EC internal market negotiations to seek agreement that member states should not impose extraordinary levies on bank balances held by businesses owned in other member states; and if he will make a statement on recent such developments in Italy.

Mr. Dorrell

Direct taxation is a matter for the member states, provided that its provisions are not contrary to obligations under the treaty establishing the European Economic Community. The Commission of the European Communities has a responsibility to ensure that national laws are consistent with treaty obligations. As I have already indicated to my hon. Friend, the question of the levy on bank balances recently imposed in Italy is under discussion with the Italian authorities.

Mr. Barry Field

To ask the Chancellor of the Exchequer what assessment he has made of the effect of the abolition of double taxation relief by the United States of America on the United Kingdom's overseas earnings; and if he will make a statement.

Mr. Dorrell

[holding answer 12 November 1992]: I am not aware of any such proposals. If the United States Administration were to propose any such change, the effect on United States and United Kingdom individuals and companies would depend on the precise nature of the United States proposals and the United Kingdom reaction to them.

Back to
Forward to