§ Mr. GibbTo ask the Chancellor of the Exchequer if the parameters of the review into double tax relief for companies are that the relief should be revenue neutral. [43572]
§ Dawn Primarolo[holding answer 1 June 1998]: The Government attach great importance to the relief of double taxation, as indicated in the Inland Revenue press release of 17 March 1998. The current review will examine the functioning and fairness of the present system, its effectiveness in meeting the objectives for which it is provided and the compliance costs that it involves for business. Its purpose is to consider the case for structural reform in the context of international developments and the organisation of multinational businesses. The cost of the relief is influenced by a number of factors, including the amount of foreign income that is taxed in the UK and relative tax rates in the UK and other countries. A consultation document will be issued in due course.