Draft Order laid before the House of Commons under section 788(10) of the Income and Corporation Taxes Act 1988 and section 173(7) of the Finance Act 2006, for approval by resolution of that House.
Draft Statutory Instruments
2009 No.
Capital Gains Tax
Corporation Tax
Income Tax
Inheritance Tax
Value Added Tax
The Double Taxation Relief and International Tax Enforcement (Guernsey) Order 2009
Made
***
At the Court at Buckingham Palace, the *** day of ***
Present,
The Queen’s Most Excellent Majesty in Council
A draft of this Order was laid before the House of Commons in accordance with section 788(10) of the Income and Corporation Taxes Act 1988(1) and section 173(7) of the Finance Act 2006(2) and approved by a resolution of that House.
Accordingly, Her Majesty, in exercise of the powers conferred upon Her by section 788(1) of the Income and Corporation Taxes Act 1988 and section 173(1) of the Finance Act 2006, by and with the advice of Her Privy Council, orders as follows—
Citation
1. This Order may be cited as the Double Taxation Relief and International Tax Enforcement (Guernsey) Order 2009.
Tax information exchange arrangements to have effect
2. It is declared that—
(a)the arrangements specified in the Exchange of Letters set out in Part 1 of the Schedule to this Order and in the Agreement set out in Part 2 of that Schedule have been made with the States of Guernsey with a view to the exchange of information foreseeably relevant to the administration or enforcement or recovery of the taxes, and debts relating to the taxes, covered by the arrangements including, in particular, provisions about the prevention of fiscal evasion with respect to those taxes; and
(b)it is expedient that those arrangements should have effect.
Double taxation arrangements to have effect
3. It is also declared that—
(a)the arrangements specified in the Exchange of Letters set out in Part 1 of the Schedule to this Order and in the Arrangement set out in Part 3 of that Schedule, which vary the arrangements set out in the Schedule to the Double Taxation Relief (Taxes on Income) (Guernsey) Order 1952(3), as amended by the arrangements set out in the Schedule to the Double Taxation Relief (Taxes on Income) (Guernsey) Order 1994(4), have been made with the States of Guernsey with a view to affording relief from double taxation in relation to income tax or corporation tax and taxes of a similar character imposed by the laws of either party; and
(b)it is expedient that those arrangements should have effect.
Clerk of the Privy Council
Article 2
SCHEDULE
EXPLANATORY NOTE
(This note is not part of the Order)
The Schedule to this Order contains an Exchange of Letters between the United Kingdom and Guernsey concerning an Agreement for the Exchange of Information Relating to Tax Matters and an Arrangement amending the 1952 Arrangement between the two Parties for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, which was scheduled to the Double Taxation Relief (Taxes on Income) (Guernsey) Order 1952 (S.I. 1952/1215) and subsequently amended in 1994 (S.I. 1994/3209). It also contains the text of the Agreement and the Arrangement.
Article 2 provides that it is expedient that the arrangements specified in the Exchange of Letters in Part 1 of the Schedule to the Order and in the Agreement in Part 2 of the Schedule should have effect. These arrangements relate to the exchange of information relating to tax matters.
Article 3 provides that it is expedient that the arrangements specified in the Exchange of Letters in Part 1 of the Schedule to the Order and in the Arrangement in Part 3 of the Schedule should have effect. These arrangements relate to the avoidance of double taxation and vary the arrangements set out in the Schedule to the Double Taxation Relief (Taxes on Income) (Guernsey) Order 1952.
A detailed explanation of the Agreement and the Arrangement can be found in the Explanatory Memorandum published with this Order and which may be accessed on the website of the Office of Public Sector Information at http://www.opsi.gov.uk/stat.htm.
The Agreement will enter into force on the date of the later of the notifications by each party of the completion of its legislative procedures required to give effect to the Agreement and will have effect from that same date in respect of both criminal tax matters and all other matters, but, in the latter case, only in relation to taxable periods beginning on or after that date, or, if there is no taxable period, all charges to tax arising on or after that date.
The Arrangement will also enter into force on the date of the later of the notifications by each territory of the completion of its legislative procedures. It will take effect in the United Kingdom—
(a)in respect of income tax, for any year of assessment beginning on or after the 6th April next following the date on which the Arrangement enters into force; and
(b)in respect of corporation tax, for any financial year beginning on or after the 1st April next following the date on which the Arrangement enters into force.
The Arrangement will take effect in Guernsey in respect of income tax, for any year of assessment beginning on or after the 1st January next following the date on which the Arrangement enters into force.
The date(s) of entry into force will, in due course, be published in the London, Edinburgh and Belfast Gazettes.
A full and final Impact Assessment has not been produced for this instrument as a negligible impact on the private or voluntary sectors is foreseen.
1988 c. 1: Section 788 was extended by section 277 of the Taxation of Chargeable Gains Act 1992 (c. 12). It has also been amended. The relevant amendments are as follows: Subsection (1) was amended by section 88(1) of the Finance Act 2002 (c. 23). Subsection (10) was substituted by section 176 of the Finance Act 2006 (c. 25).