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<p>It is the Government's long-standing policy that designated persons are not exempt
from tax as a consequence of having their assets frozen. The Government's response
of 24 June to the Northern Ireland Affairs Committee report (into Government support
for UK victims of IRA attacks that used Qadhafi-supplied Semtex and weapons) set out
the releasable information the Government has about tax receipts derived from the
interest on frozen Libyan assets held in UK banks. The Government's response says:</p><p><em>"As
stated in the Office of Financial Sanctions Implementation's letter to the Committee
of 23 April 2019, OFSI's responsibilities do not include tracking tax liabilities
on frozen assets. HMRC, as the department responsible for safeguarding the flow of
money to the Exchequer is responsible for any records of tax liability. HMRC has reconsidered
how we can help the Committee within the legal constraints governing our ability to
share information. We have concluded that we can use aggregated information to answer
the Committee's questions, provided that information cannot be tied back to individual
persons or companies as a result. HMRC receives payments of tax from a small proportion
of the entities designated under the Libyan regime. Around £17 million has been received
in total since the start of the 2016-17 tax year. HMRC currently receives around £5
million each year."</em></p>
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