HC Deb 16 December 1991 vol 201 cc5-6W
Mr. Grylls

To ask the Chancellor of the Exchequer if he is yet in a position to announce the outcome of the Government's review of unitary tax with the United States Treasury.

Mr. Maude

The review of unitary tax conducted jointly by the Inland Revenue and the United States Treasury has now been completed and the Government have endorsed the conclusions reached in the report. A copy of the review report, which has been published today, is being placed in the Library.

The report highlights the main points in a complicated issue. It identifies not only where progress has been made to date but also assesses the best practical means of taking matters forward.

In accordance with the report's conclusions, both Governments take this opportunity to restate their commitment to work together to secure the elimination of the worldwide combined reporting method of unitary taxation.

At present we believe that the best means of achieving this goal is to support companies litigating in United States courts against worldwide unitary tax. Both Governments will continue to give such support.

In the meantime the British Government intend to retain the legislation contained in section 812 of the Income and Corporation Taxes Act 1988. No further guarantee is contemplated as to the effective date of the

1 Constant prices have been constructed using the GDP deflator at market prices.

Mr. Shore

To ask the Chancellor of the Exchequer what has been the contribution to EC funds in each year since 1986 made by each of the 12 members of the EC(a) gross and (b) net, in constant prices.

Mr. Norman Lamont

The gross contribution to the EC budget by each member state in constant prices for the years 1986–1990 is in the table. Details of member states' gross contributions for 1991 will be published in the "Statement on the 1992 Community Budget" early next year. Details of member states' net contributions are not published by the European Commission.

legislation were it to be triggered, beyond the guarantee, previously given, that it would not apply to dividends paid on or before 31 December 1989.