Statutory Instruments
2012 No. 3076
Capital Gains Tax
Corporation Tax
Income Tax
The Double Taxation Relief and International Tax Enforcement (Barbados) Order 2012
Made
12th December 2012
At the Court at Buckingham Palace, the 12th day of December 2012
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 5(2) of the Taxation (International and Other Provisions) Act 2010(1) and section 173(7) of the Finance Act 2006(2) and approved by a resolution of that House.
Accordingly, Her Majesty, in the exercise of the powers conferred upon Her by section 2 of the Taxation (International and Other Provisions) Act 2010 and section 173(1) to (3) 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 (Barbados) Order 2012.
Double taxation and international tax enforcement arrangements to have effect
2. It is declared that—
(a)the arrangements specified in the Convention set out in the Schedule to this Order have been made with the Government of Barbados;
(b)the arrangements have been made with a view to affording relief from double taxation in relation to income tax, corporation tax, capital gains tax and taxes of a similar character imposed by the laws of the Government of Barbados and for the purposes of assisting international tax enforcement; and
(c)it is expedient that the arrangements should have effect.
Richard Tilbrook
Clerk of the Privy Council
Article 2
SCHEDULE
EXPLANATORY NOTE
(This note is not part of the Order)
The Schedule to this Order contains a convention (“the Arrangements”) dealing with the avoidance of double taxation and prevention of fiscal evasion between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of Barbados. This Order brings the Arrangements into effect.
The Arrangements aim to eliminate the double taxation of income and gains arising in one country and paid to residents of the other country. This is done by allocating the taxing rights that each country has under its domestic law over the same income and gains, and/or by providing relief from double taxation. There are also specific measures which combat discriminatory tax treatment and provide for assistance in international tax enforcement.
Article 1 provides for citation.
Article 2 makes a declaration as to the effect and content of the Arrangements.
The Arrangements will enter into force on the date of the later of the notifications by each country of the completions of its legislative procedures. They will take effect as follows:
(a)in Barbados:
(i)in respect of taxes withheld at source, to income derived on or after 1st January of the calendar year next following the date of entry into force;
(ii)in respect of other taxes on income, to taxes chargeable for any taxable year beginning on or after 1st January of the calendar year next following the date of entry into force
(b)in the United Kingdom:
(i)in respect of income tax and capital gains tax, for any year of assessment beginning on or after 6th April next following the date of entry into force; and
(ii)in respect of corporation tax, for any financial year beginning on or after 1st April next following the date of entry into force.
Until such time as the Arrangements enter into force the agreement set out in the Schedule to the Double Taxation Relief (Taxes On Income) (Barbados) Order 1970 (S.I. 1970/952), as amended by the protocol set out in the Schedule to the Double Taxation relief (Taxes on Income) (Barbados) Order 1973 (S.I. 1973/2096), continue to have effect.
The date of entry into force will, in due course, be published in the London, Edinburgh and Belfast Gazettes.
A Tax Information and Impact Note has not been produced for this Order as it gives effect to a previously announced policy to enact a double taxation agreement.