| answer text |
<p>The Government does not impose restrictions on where UK banks can operate overseas.
However, the UK has championed international tax transparency and through our G8 Presidency
has driven the agreement and early implementation of the new global standard for automatic
exchange of financial information for tax purposes. To date over 90 countries have
committed to exchange such information on a multilateral basis. The UK also remains
committed to ensuring that there are effective anti-avoidance rules in place to protect
the UK corporation tax base.</p><p> </p><p> </p><p> </p><p>This includes the introduction
of new Controlled Foreign Company rules (effective from the beginning of 2013) which
help to deter and prevent artificial diversion of profits from the UK.</p><p> </p><p>
</p><p> </p><p>It also includes supporting the G20-OECD Base Erosion and Profit Shifting
project which is looking to address weaknesses in international tax rules which allow
companies to avoid paying tax on their profits.</p><p> </p><p> </p><p> </p><p>The
Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) are the
UK financial services regulators. The role of the FCA and PRA in regulating overseas
branches and subsidiaries of UK banks is dependent on the specific circumstances of
an individual case.</p><p> </p><p> </p><p> </p><p>However, I have asked the FCA and
the PRA to reply directly to the Noble Lord by letter to explain their role in this
area. A copy of the letter will be placed in the Library of the House.</p><p> </p><p>
</p><p> </p>
|
|
