HC Deb 19 April 2000 vol 348 cc577-8W
Mr. Heathcoat-Amory

To ask the Chancellor of the Exchequer (1) if he will estimate the loss of tax revenue if all those companies at present benefiting from rules to be changed by the Budget proposals on(a) double taxation relief and (b) controlled foreign companies were to move away from United Kingdom tax jurisdiction; [117398]

(2) what is the estimated yield from the Budget proposals for (a) double taxation relief for companies and (b) controlled foreign companies if all off-setting behavioural changes are ignored; [117400]

(3) what is the number of companies likely to be affected by the Budget proposals for (a) double taxation relief and (b) controlled foreign companies. [117399]

Mr. Portillo

To ask the Chancellor of the Exchequer (1) what representations he has received from business organisations concerning the proposed changes to double taxation relief and to controlled foreign companies outlined in his Budget report; how many such representations he has received; from whom such representations have been received; what estimates have been given by business organisations concerning the cost to United Kingdom-based multinationals of the proposed changes; and if he will make a statement; [117284]

(2) pursuant to the oral statement by the Chief Secretary to the Treasury, of 27 March 2000, Official Report, column 121, if he will list the companies named in representations by Mr. Peter Wyman of PricewaterhouseCoopers as likely to be adversely affected by the proposed changes to double tax relief and to controlled foreign companies outlined in his Budget report; [117281]

(3) if he proposes to revise the estimated revenue to be produced by the changes to double taxation relief and to controlled foreign companies outlined in his Budget report following the representations made by business organisations; [117285]

(4) within what range of cost to individual UK-based multinationals the proposed changes to double taxation relief and to controlled foreign companies outlined in his Budget report will fall; [117280]

(5) pursuant to the oral statement by the Chief Secretary to the Treasury, of 27 March 2000, Official Report, column 121, what representations have been made to the Treasury by Mr. Peter Wyman of PricewaterhouseCoopers concerning the proposed changes to double taxation relief and to controlled foreign companies outlined in his Budget report. [117282]

Dawn Primarolo

[holding answers 3 April 2000]: The expected yield from the double taxation relief and controlled foreign company proposals is set out in Table A.13 of the 2000 Financial Statement and Budget Report. No other reliable estimates have been received. The extent to which companies will be affected will vary from year to year depending on a number of factors. The Government are determined to create the most competitive environment for business in the world. We have cut corporate tax rates to their lowest level ever but to keep tax rates low we cannot tolerate the erosion of the tax base by tax avoidance schemes and structures.