Category: Speeches

The below Parliamentary question was asked by Roger Godsiff on 2016-06-07.

To ask Mr Chancellor of the Exchequer, if he will make an assessment of the effect of the UK’s tax treaties with developing countries on tackling poverty in those countries.

Mr David Gauke

The UK regularly reviews its treaty network and actively engages with developing countries. Discussions with Malawi over a new tax treaty began some years ago, and substantive agreement has been reached at official level. It is hoped that the treaty will be signed shortly. Although the UK’s starting point in negotiations is based closely on the OECD model double taxation convention, the Government recognises that developing countries will sometimes have different preferences, and treaties the UK has recently signed demonstrate that we are willing to accommodate at least some of those preferences as part of a balanced agreement. But the nature of the negotiating process is that it remains confidential to the two sides until the treaty is signed.

By governing the taxation of cross-border income flows in a predictable manner and eliminating double taxation and excessive taxation, tax treaties promote international trade and investment, leading to sustainable tax revenues, which are vital in financing for development.