Revenue announces tax treaty plan
The Inland Revenue has announced the UK's tax treaty programme for 2000/2001 and a projection of the work to be done in subsequent years, following consultation with businesses.
Paymaster General Dawn Primarolo said: ‘The top priority during the coming year is to continue our negotiations with the United States. Work on the treaty programme will ensure that our network of income tax treaties remains healthy and responsive to developments in the UK and abroad.’
The government plans to complete the outstanding work on new DTAs with France, Germany, Lithuania, Norway and South Africa. It also hopes to conclude negotiations with Chile, Jordan and Namibia during the 2001/2002 period. However, talks with other countries may be put on the back burner due to the Revenue’s priortites lying with the US.
This is the first year work on double contribution agreements will be undertaken by the Revenue’s. DCAs, among other things, aim to promote a free flow of labour between countries and ensure the UK maintains its position as an attrative investment location. DCAs aim to protect individuals working abroad against the risk of a double tax burden. They also guard against tax avoidance and evasion by providing for the exchange of information betweeen the Revenue and authorities.
London mayor: who would be best for business?