Taxation (Hansard, 18 January 1990)

§ 17. Miss Hoey
To ask the Chancellor of the Exchequer what is the composite rate of tax for 1990–91.

§ Mr. Lilley
The composite rate of tax for 1990–91 is 22 per cent.

§ 32. Mr. Franks
To ask the Chancellor of the Exchequer if it remains his policy to achieve lower rates of direct taxation; and if he will make a statement.

§ Mr. Lilley
I refer my hon. Friend to the reply given by my right hon. Friend the Chancellor earlier today to my hon. Friend the Member for Wirral, South (Mr. Porter).

§ Mr. David Shaw
To ask the Chancellor of the Exchequer if, pursuant to his answer of 11 January, he will list those reasons which are known to the Inland Revenue other than for the sole or main purpose of avoiding or evading United Kingdom taxation, that United Kingdom-based individuals, companies and trusts enter into transactions with persons or organisations based in tax havens; and whether he will carry out studies with a view to estimating the current loss of revenue through business transactions involving tax havens.

§ Mr. Lilley
The Inland Revenue does not make judgments as to the motives of individuals, companies or trusts entering into transactions with persons or organisations based in tax havens. There is no reliable means of estimating the tax loss through avoidance and evasion in connection with tax haven transactions.

§ Mr. David Shaw
To ask the Chancellor of the Exchequer whether he has any proposals to prevent tax avoidance and tax evasion by satellite television companies entering into business transactions with connected or associated companies, individuals and trusts based in(a) Jersey, (b) the Isle of Man, (c) Guernsey, (d) the Netherlands Antilles, (e) the Cayman Islands and (f) Liechtenstein for the sole purpose of avoiding or evading the payment of taxation in the United Kingdom.

§ Mr. Lilley
If my hon. Friend has evidence of tax avoidance or evasion in this field perhaps he will write to me.

§ Mrs. Gorman
To ask the Chancellor of the Exchequer what has been the effect on the total revenue received of abolishing the upper income tax bands.

§ Mr. Lilley
The 1988 financial statement and budget report estimated the cost of abolishing higher rates above 40 per cent. at £965 million in 1988–89 and £2,070 million in 1989–90. These estimates did not include behavioural effects.