Government to ‘encourage’ tax havens on EU code

Home Office Minister Lord Bassam of Brighton told the Lords:’We have no plans to interfere with the current constitutionalarrangements.’

But, replying to a series of questions, he made it clear the UKsupports international measures to counteract harmful taxcompetition, is committed to ‘encouraging’ dependencies to doso and ‘expects to start discussions with the Channel Islandson the code group’s report.’

He said the code commits member states to tackle the issue’within the framework of their constitutional arrangements’and stressed progress would be through ‘discussion andnegotiation.’

But he did not rule out what one peer described as ‘efforts topressurise the Channel Islands to accept the measure.’

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