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Company Residence

Volume 13: debated on Thursday 26 November 1981

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asked the Chancellor of the Exchequer if he will seek to repeal section 482 of the Income and Corporation Taxes Act 1970 and to redefine company residence.

[pursuant to his reply, 16 November 1981, c. 2): I refer the hon. Member to the reply given on 19 November 1981.

asked the Chancellor of the Exchequer whether he plans to take action following the publication of the Inland Revenue consultative documents "Tax Havens and the Corporate Sector" and "Company Residence"; and if he will publish a list of those persons and bodies who have made representations on these documents, distinguishing those resident in the Channel Islands and the Isle of Man.

[pursuant to his reply, 16 November 1981, c. 3]: I refer the hon. Member to the reply given on 19 November.Comments on the consultative documents were received from 29 representative bodies and 31 individual firms. No comments were received from any resident of the Channel Islands or the Isle of Man.

asked the Chancellor of the Exchequer if he will seek to impose on companies operating in the United Kingdom but resident in the Channel Islands or the Isle of Man a surcharge equivalent to the amount of tax that would have been paid by them had they been ordinarily resident in the United Kingdom.

[pursuant to his reply, 16 November 1981, c. 3]: No. Such a provision would be arbitrary and unworkable.

asked the Chancellor of the Exchequer if he will estimate the annual tax forgone by the Exchequer in respect of companies operating essentially as companies registered in the United Kingdom but registered in the Channel Islands or the Isle of Man.

[pursuant to his reply, 16 November 1981, c. 3]: The practice to which the hon. Member refers does not result in the loss of any United Kingdom tax.