§ Mr. GibbTo ask the Chancellor of the Exchequer (1) when he plans to provide a substantive answer to the question from the hon. Member for Bognor Regis and Littlehampton on proposals from the Code of Conduct Group (Ref. 62330); [64336]
(2) if he will define harmful tax competition in the context of the EU. [63513]
§ Dawn Primarolo[holding answer 14 December 1998]: The Code of Conduct, which was adopted by the Council of Finance Ministers on 1 December 1997, sets out the criteria against which potentially harmful tax measures should be assessed. The Code of Conduct was published in the Official Journal of the European Communities on 6 January 1998. This journal is available from the House of Commons Library.
§ Mr. GibbTo ask the Chancellor of the Exchequer how many current proposals are being considered by the Code of Conduct Group to tackle harmful tax competition; and if he will list them. [62342]
§ Dawn Primarolo[holding answer 7 December 1998]: The Code of Conduct is required to assess measures referred to it by Member States. The UK Government have five measures listed: International Headquarters Companies; special tax measures for the film industry; enterprise zones; 100 per cent. first year capital allowances for SMEs in Northern Ireland; and rollover relief for balancing charges arising on the disposal of ships. This does not imply that the measures are actually harmful under the terms of the Code. Discussions on these and the other measures are proceeding. International Holding Companies are due to be abolished in April next year following decisions made. The Government are confident that the other four UK measures are not actually harmful within the meaning of the Code and are robustly making that case. The Government are not at liberty to give details of other Member States' listed measures as the work of the Group is confidential according to Council Conclusions which all Member States agreed in March 1998.