Overview

This bill mandates the Chancellor of the Exchequer to consider the UK's overseas development aid goals when negotiating double taxation treaties with developing countries. It requires assessments of how these treaties impact poverty reduction and necessitates annual reports to Parliament on their effectiveness.

Description

The Double Taxation Treaties (Developing Countries) Bill introduces several key duties for the Chancellor:

• Duty to Consider Poverty Reduction: When negotiating double taxation treaties with developing countries, the Chancellor must consider the UK's overseas development aid program's aims in reducing poverty.
• Pre-Signing Assessment and Report: Before signing a treaty, the Chancellor must assess and report to the House of Commons on the extent to which the treaty's terms support poverty reduction. This assessment must include factors such as the developing country's ability to collect taxes (capital gains, withholding, profit taxes, etc.) and the potential impact on foreign investment.
• List of Developing Countries: The Chancellor must publish a list of developing countries to which the bill applies, using various international classifications (e.g., UN, World Bank).
• Annual Reporting: The Chancellor must annually report to Parliament on the impact of existing double taxation treaties on poverty reduction in those countries. This includes evaluating treaties that may be significantly different from comparable agreements or no longer contribute to poverty reduction goals.

Government Spending

The bill does not directly involve significant new government spending. The costs will primarily relate to the resources required for the Chancellor's office to conduct the assessments, prepare the reports, and manage the process of identifying qualifying developing countries. Specific figures are not provided within the text of the bill.

Groups Affected

• Chancellor of the Exchequer: Takes on new responsibilities for assessment and reporting.
• Developing Countries: The terms of double taxation treaties will be influenced by their impact on poverty reduction.
• UK Parliament: Receives annual reports on treaty effectiveness.
• Multinational Corporations: May experience changes in tax liabilities depending on treaty revisions.

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