§ Sir Teddy TaylorTo ask the Secretary of State for the Home Department if he will make a statement on the powers of Her Majesty's Government to seek to impose taxes on the Channel Islands, with particular reference to the proposed EU withholding tax. [62515]
§ Mr. Mike O'Brien[holding answer 7 December 1998]: The Channel Islands are not subject to European Union instruments on taxation, such as the proposed Directive on the taxation of savings. The Explanatory Memorandum to the proposed Directive, however, encourages member states to apply the measures contained in the Directive to their dependent territories within the framework of their constitutional arrangements. Legislation on taxation matters has always taken the form of laws enacted by the Island legislatures.