§ Mr. Corbettasked the Chancellor of the Exchequer if he will take steps to strengthen existing legislation to prevent the abuse of tax havens by companies registered in the United Kingdom and individuals resident in the United Kingdom; and if he will make a statement.
§ Mr. Robert Sheldon,pursuant to his reply [Official Report, 8th March 1977; Vol. 927], gave the following information:
The existing legislation is already extensive. It has been supplemented in recent years by, for example, the new rules introduced in 1974 about the taxation of earned income from abroad, the wider Inland Revenue powers to require information about prices in transactions between connected companies introduced in 1975 and the wider Inland Revenue powers to require information generally which were introduced in 1976. The Inland Revenue is continually seeking to improve the operation of the existing rules. If further strengthening is needed and suitable provisions can be devised I will not hesitate to introduce appropriate legislation.