Helen Goodman – 2016 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Helen Goodman on 2016-02-05.

To ask Mr Chancellor of the Exchequer, what principles or framework HM Revenue and Customs uses to negotiate tax treaties with developing countries.

Mr David Gauke

The UK’s starting point in negotiations of tax treaties is based closely on the OECD Model Double Taxation Convention, which is also the basis for most other countries’ tax treaties. Some developing countries prefer to follow the UN Model Convention, the provisions of which differ in some areas to the OECD Model and the UK has agreed to adopt some of the UN provisions in its treaties with those countries. The object of the negotiations is to produce a text acceptable to both countries, balancing their preferences and reflecting compromises.