§ Mr. DalyellTo ask the Chancellor of the Exchequer what proposals he has to remove tax secrecy from(a) the Channel Islands, (b) the Isle of Man, (c) Gibraltar and (d) Caribbean dependencies; and if he will enter into discussions with the authorities of such places about the prevention of drug trafficking and fraud. [40368]
§ Mr. Jack[holding answer 14 October 1996]: Arrangements already exist for the exchange of information with the Channel Islands and other dependencies, where appropriate, for taxation purposes, including the detection and prevention of fraud. Legislation has been in place for some time to tackle the avoidance of tax through the use of off-shore concerns, and if the Government become aware of any significant new risk in this area, further legislation will be considered.
834Wdetailed in the table, have no expiry date. In the absence of any unanimous agreement upon 'definitive' VAT regime, the existing provisions continue to apply automatically and without time limit.
The Government take a prominent role in advising these territories on suitable legislation concerning the prevention of drug trafficking and fraud. All have drug money laundering legislation and some have extended these provisions to cover all serious crimes. Many have statutory gateways which allow information to be passed to overseas regulators. These measures have removed many obstacles caused by secrecy provisions, and further work is continuing to improve the exchange of information with these territories.