Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, when he expects a new double taxation treaty with Malawi to be signed.

The text of a new double taxation treaty with Malawi was substantively agreed some time ago. However, in August 2016, Malawi raised some further points for consideration. My officials are discussing these points with their counterparts in Malawi. When that process is complete, and both countries are satisfied with the contents of the new treaty, it will be signed and published.

Double taxation treaties are a valuable means of promoting development. They serve to eliminate double taxation, and can reduce excessive levels of taxation, which deter UK companies from making investments and generally doing business in developing countries. These treaties also provide those companies with greater certainty of tax treatment, which gives them confidence to invest, bringing jobs, prosperity, and higher tax revenues in the host country, which are essential for sustainable development.

In addition, the UK ensures its double taxation treaties serve a revenue protection function both in the UK and in the other country. That is why UK double taxation treaties now always contain measures which tackle the abuse of reliefs and benefits they grant. Our treaties also permit the exchange of information to counter avoidance and evasion, and, where the other country agrees, contain provisions allowing each tax authority to collect tax on the other's behalf - for example where a person has gone to live in the other country leaving an unpaid tax bill behind.