Lisa Cameron – 2016 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Lisa Cameron on 2016-09-02.

To ask Mr Chancellor of the Exchequer, what assessment he has made of the effect of the UK’s tax treaties with developing countries on tax revenue in the UK.

Jane Ellison

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. However, as my predecessor and Rt Hon Friend the Member for South West Hertfordshire has stated in response to similar questions, given the long timescales, complex and shifting interactions with domestic law, large and unpredictable behavioural effects and the lack of a sensible comparator, it is not possible to produce meaningful estimates of the revenue effects of double taxation agreements, and successive Governments have never attempted it.