§ Mr. Timothy Smithasked the Chancellor of the Exchequer when the Inland Revenue expects to publish its revised draft proposals on international tax avoidance.
§ Mr. WakehamWith my approval the Inland Revenue is issuing today a consultative document entitled "Taxation of International Business". Comments are invited by mid-February.
The document contains fresh draft legislation on controlled foreign companies in low-tax countries, which takes into account the representations made on the November 1981 draft legislation on tax havens. The explanatory material accompanying the draft legislation also makes clear that we have decided not to propose a statutory definition of company residence and that we are not proposing legislation on upstream loans but are giving further consideration to the problem.
Copies of the document have been placed in the Library of the House.