§ 26. Mr. Viggersasked the Chancellor of the Exchequer if he is satisfied that the basis of taxation of North Sea oil and gas provides sufficient incentive for investment.
§ Mr. LawsonYes. We will, however, consider very carefully any views or evidence on this issue which the industry may bring forward in its representations on the long-term structure of the oil taxation regime.
§ 34. Mr. Richard Wainwrightasked the Chancellor of the Exchequer whether he now expects the combined yield of all taxes on North Sea oil operations in 1981–82 to reach the total estimated in his Budget.
§ Mr. LawsonOn the evidence so far available, revenue from North Sea oil and gas production is expected to be close to the Budget estimates.
§ Mr. Gordon Wilsonasked the Chancellor of the Exchequer if he will estimate the petroleum revenue tax 480W lost because of invoicing of goods or services at higher than market prices through tax-haven companies and contractors or subcontractors registered abroad.
§ Mr. Peter ReesI have no evidence of petroleum revenue tax lost in this way.
§ Mr. Gordon Wilsonasked the Chancellor of the Exchequer (1) if he will estimate the corporation tax lost because of tax avoidance or evasion in respect of companies engaged by oil companies and contractors or subcontractors in respect of services relating to or arising from oil development in the Scottish sector of the North Sea;
(2) if he will estimate the income tax unpaid because of tax avoidance or evasion in respect of people employed by oil companies, contractors or subcontractors in work relating to or arising from oil development in the Scottish sector of the North Sea.
§ Mr. Peter ReesThe United Kingdom continental shelf is not divided into sectors. Information available is insufficient to estimate how much corporation tax or income tax is lost because of tax avoidance or evasion in respect of services or employment connected with oil development on the United Kingdom continental shelf.
§ Mr. Gordon Wilsonasked the Chancellor of the Exchequer what steps he has taken to curb tax avoidance and evasion by offshore and onshore oil contractors.
§ Mr. Peter ReesThe Inland Revenue is active in using its various powers to counter avoidance and evasion, including section 38, Finance Act 1973 in regard to non residents, section 485 Income and Corporation Taxes Act 1975 on transfer pricing, and exchange of information with other countries under the terms of our double taxation agreements.