§ Mr. Andrew SmithTo ask the Chancellor of the Exchequer what criteria he expects the Bank of England to follow in assessing current sovereign debt problems for the purpose of assessing the tax claims of commercial banks.
§ Mr. Lilley[holding answer 26 November 1987]: the Bank of England has no responsibility for the determination of the banks' tax liabilities. That is a matter for the Inland Revenue, applying the tax law.
§ Mr. Andrew SmithTo ask the Chancellor of the Exchequer when he expects the Inland Revenue to544W complete its negotiations with the commercial banks concerning the tax relief allowable in developing country debt provisions.
§ Mr. Lilley[holding answer 26 November 1987]Deductions legally due for losses incurred on irrecoverable loans are established in the course of the annual determination of each bank's taxable profits when its accounts and tax computations have been submitted to the tax inspector.