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Anglo-American Tax Treaty

Volume 961: debated on Monday 22 January 1979

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asked the Chancellor of the Exchequer if the tax treaty recently concluded with the American Treasury is retroactive; how much the retroactive payment will amount to; if he will list the major multinational companies which will receive money from the Treasury and how much; and what the expected yearly sum will be which will flow to United States investors.

The proposed new United Kingdom/United States double taxation convention is to take effect in general from 6 April 1975 in the case of the United Kingdom and from 1 January 1975 in the case of the United States. For dividends paid by United Kingdom companies to portfolio investors resident in the United States, the new arrangements apply to dividends paid on or after 1 April 1973, when the current corporation tax system came into force.A third protocol to the convention is required before the convention as amended by that protocol can be brought back to the United States Senate and subsequently to the House of Commons for consideration. It would be inappropriate to comment on the costs and benefits of the convention at this stage and in any event it would be a breach of confidence to disclose information

Reports by consultants commissioned since 1974:—
1974Cost effectiveness of sampling for laboratory test£3,811
1974Effectiveness of preventive control£8,813
1977–78Review of Database requirements£23,400 (in 1977)
£24,000 (in 1978)
1977–78Review of data processing standards£4,400 (in 1977)
£31,000 (in 1978)