§ 18. Mr. StunellTo ask the Secretary of State for International Development what discussions she has had with the Chancellor of the Exchequer concerning the future tax position of the Commonwealth Development Corporation. [67524]
§ Clare ShortWe are working with HM Treasury and the Inland Revenue to produce a tax solution that will encourage investment in the poorest countries through the CDC public-private partnership. Parliament will have the opportunity to scrutinise our proposals.
The Commonwealth Development Corporation needs to be tax efficient if it is to be able to achieve its goal of investing in developing countries using private capital raised within the context of a competitive private investment market dominated by offshore funds. In order to compete directly with offshore funds for private capital for investment in its area, CDC would need to provide a similar financial return. A material UK tax charge within CDC would make this less achievable.