§ Mr. Doverasked the Chancellor of the Exchequer what concessions he was able to obtain from Canada in relation to the Double Taxation Relief (Taxes on Income) (Canada) Order 1985.
§ Mr. MooreThe provisions of double taxation agreements represent a package of measures which both countries are able to accept as part of a fair and balanced treaty. Among the changes of benefit to the United Kingdom in the new Canadian agreement are the reductions in the Canadian withholding tax on dividends from direct investment in Canada, in the Canadian branch308W profits tax, and in the withholding tax on interest. In addition, there are provisions which will benefit United Kingdom pensioners living in Canada.
§ Mr. Doverasked the Chancellor of the Exchequer what consultations he had regarding the provisions of Article 27A of the Double Taxation Relief (Taxes on Income) (Canada) Order 1985.
§ Mr. MooreThe usual press release was issued announcing that negotiations would take place on possible changes to the existing United Kingdom/Canada double taxation convention and inviting representations from interested parties. No detailed consultations took place on individual articles.
§ Mr. Doverasked the Chancellor of the Exchequer why he has not exempted existing contracts from the provisions of the Double Taxation Relief (Taxes on Income) (Canada) Order 1985.
§ Mr. MooreIt would not be normal practice to include an open-ended exemption of this kind in a double taxation agreement.