Oral Answers to Questions

Virendra Sharma Excerpts

Tuesday 25th October 2016 Commons Chamber

[Patrick Grady (Glasgow North) (SNP)]

2. What his Department’s objectives are in negotiating double taxation treaties with developing countries.

[Mr Virendra Sharma (Ealing, Southall) (Lab)]

4. What outcomes his Department seeks to achieve when negotiating double taxation treaties with developing countries.

--- Later in debate ---

[Jane Ellison]

I disagree with the hon. Gentleman. In fact, double taxation treaties help developing countries. They often remove uncertainty about the way in which businesses choose to make investments, and they open up the route to fairer and more open trade. The majority of the UK’s double taxation treaties are based on the OECD model double taxation convention, and we work very closely with countries to reach mutually acceptable treaties.

[Mr Sharma]

What plans does the Minister have to carry out assessments of the impact of the UK’s tax treaties on developing countries, and will her Department offer poorer countries the opportunity to renegotiate treaties that do not do enough to support their development?

[Jane Ellison]

As I have said, there is a rolling programme of renegotiation to make sure that treaties reflect modern standards. More broadly, the UK has a very proud record on capacity building in this area. We lead international efforts to support developing countries in tax capacity building. One example is that DFID funds the Global Forum, the World Bank and the OECD to provide technical assistance to partner countries. We can be proud of that record.