§ Lord Moynihanasked Her Majesty's Government:
How many people are working in this country for the 43 organisations now exempted from the payment of insurance premium tax and air passenger duty. [HL3887]
§ Baroness Scotland of AsthalI refer the noble Lord to my earlier reply to his Question No. 3425.
1,980 officials work in this country for 34 international organisations currently entitled to refunds of insurance premium tax and air passenger duty.
The total number of officials presently working in this country for the 43 organisations that will be entitled to refunds is 2,626.
§ Lord Moynihanasked Her Majesty's Government:
Why they have extended the exemption from insurance premium tax and air passenger duty to 43 international organisations; and which are the 17 not previously entitled to exemptions. [HL3885]
§ Baroness Scotland of AsthalIt is established international practice that a state should not tax other states through the intermediary of an international organisation and that a host state should not derive undue fiscal advantage from the presence on its soil of an international organisation.
In accordance with that practice it is the policy of Her Majesty's Government to refund insurance premium tax (IPT) and air passenger duty (APD) to all international organisations of which the United Kingdom is a member and which have headquarters or offices in the United Kingdom and to those others, although not based here, to which we are legally obliged to give relief from such taxes and duties. There are 43 such international organisations.
7WAThe 17 organisations with which exchanges of notes were concluded as they were not entitled to refunds under the wording of their existing agreements are:
- CAB International
- Commonwealth Foundation
- Commonwealth Telecommunications Organisation
- European Centre for Medium Range Weather Forecasts (ECMWF)
- International Cocoa Organisation
- International Coffee Organisation
- International Grains Council
- International Lead and Zinc Study Group
- International Maritime Organisation (IMO)
- International Mobile Satellite Organisation
- International Oil Pollution Compensation Fund
- International Oil Pollution Compensation Fund 1992
- International Rubber Study Group
- International Sugar Organisation
- International Telecommunications Satellite Organisation
- International Whaling Commission
- Oslo and Paris Commissions
The International Organisations (Immunities and Privileges) Miscellaneous Provisions Order 1999 provides for refunds of insurance premium tax (IPT—and air passenger duty (APD) to 15 of those listed above.
The INTELSAT (Immunities and Privileges (Amendment) Order 1999 provides for refunds of IPT and APD to the International Telecommunications Satellite Organisation.
The International Mobile Satellite Organisation (Immunities and Privileges) Order 1999 provides for refunds to the International Mobile Satellite Organisation.
§ Lord Moynihanasked Her Majesty's Government:
What detailed procedures are in place to ensure that the claims of representatives of the international organisations that qualify for the exemptions from air passenger duty are made purely in connection with official duties; and how many government employees are employed on this assignment. [HL3886]
§ Baroness Scotland of AsthalClaims must be submitted on form TX 16. (Copies will be placed in the Library of the House). This form has to be signed by the head of the international organisation or, in his absence, the official designated to act for him. The head must certify that the air passenger duty (APD) and insurance premium tax (IPT) covered by the claim were incurred on official business of the organisation and that no claim for refund of APD/IPT has previously been made in respect of them. Forms must also be supported by original invoices and evidence of payment.
8WAApart from the backlog payable from the introduction of IPT and APD in October 1994 and November 1994 respectively, which will also be subject to the submission of completed forms and supporting documentation, all claims must be submitted at regular intervals and must be restricted to expenditure made not more than one year prior to the date of application. All claims are subjected to sample testing in accordance with FCO accounting procedures and National Audit Office requirements.
Two officials in the FCO will verify APD/IPT claims.