§ Mr. Matthew BanksTo ask the Chancellor of the Exchequer if he will outline policy on the negotiation of double taxation treaties; and if he will make a statement on recent developments.
§ Sir George YoungThe Government are committed to expanding the network of double taxation treaties and modernising existing ones. In this way, we minimise 3W barriers to international trade and investment—objectives stressed in the competitiveness White Paper.
Double taxation treaties are of major importance for United Kingdom business, as they assist taxpayers to trade or invest abroad without the impediment of double taxation or excessive compliance problems. The United Kingdom has led the way in this field by negotiating the largest network of double taxation treaties; we now have treaties with about 100 countries—reflecting our role as a major trading nation.
Most recently, the House has approved 10 double taxation treaties, including those with Vietnam, Mexico and the Russian Federation. At least another dozen treaties have been signed or are at an advanced stage of negotiation, including those with France, Malta and Argentina.
Looking to the future, I have approved an Inland Revenue programme of negotiations covering the period to March 1996. This targets, in particular, the fastest developing economies offering greatest growth potential for United Kingdom business. These priorities have been determined following extensive consultation between the Inland Revenue and business, commercial and professional representatives bodies and other Government Departments. This is an excellent example of the benefits of close co-operation between business and the Inland Revenue.