§ Mr. Gordon Wilsonasked the Chancellor of the Exchequer what effects double taxation agreements have on tax revenues received from companies, firms and individuals involved in North Sea oil development.
§ Mr. Peter ReesThe power to tax non-resident companies and individuals involved in North Sea oil development—in section 38 of the Finance Act 1973—may in certain cases be overridden by double taxation agreements which were entered into with other countries before North Sea oil was discovered, and before that power was taken. Where appropriate, the Inland 511W Revenue has entered into negotiations with the tax authorities of other countries with the object of modifying the terms of these agreements to allow us to exercise our taxing rights under our domestic law. A number of such modified agreements are now in force.