The Double Taxation Relief and International Tax Enforcement (Libya) Order 2009

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.

Taxes

The Double Taxation Relief and International Tax Enforcement (Libya) 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 (Libya) Order 2009.

Double taxation and international tax enforcement arrangements to have effect

2.  It is declared that—

(a) the arrangements specified in the Convention scheduled to this Order have been made with the Government of the Great Socialist People’s Libyan Arab Jamahiriya;

(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 Libya and for the purpose of assisting international tax enforcement; and

(c) it is expedient that those arrangements should have effect.

Name

Clerk of the Privy Council

Article 2

SCHEDULE

EXPLANATORY NOTE

(This note is not part of the Order)

The Schedule to this Order contains the Convention between the United Kingdom and Northern Ireland and the Great Socialist People’s Libyan Arab Jamahiriya for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital Gains.

Article 1 of this Order provides for its citation.

Article 2 makes a declaration as to the effect and content of the arrangements set out in the Convention and provides that it is expedient that those arrangements should have effect.

A detailed explanation of the Convention can be found in the Explanatory Memorandum published with the Convention and which may be seen on the website of the Office of Public Sector Information at http://www.opsi.gov.uk/stat.htm.

The Convention will enter into force on the date of the later of the notifications by each party of the completion of its legislative procedures.

In respect of the provisions for the avoidance of double taxation, the Convention will have effect as follows—

• in the United Kingdom:

  • in respect of income tax and capital gains tax, for any year of assessment beginning on or after 6th April next following the date on which the Convention enters into force;

  • in respect of corporation tax, for any financial year beginning on or after 1st April next following the date on which the Convention enters into force;

• in Libya: for any calendar year or financial year, as the case may be, subject to the discretion of the Libyan Tax Department, beginning on or after 1st January next following the date on which the Convention enters into force.

The date of entry into force will, in due course, be published in the London, Edinburgh and BelfastGazettes.

No full and final Impact Assessment has been produced for this instrument because it is considered that its impact on the private and voluntary sectors will be negligible.

(1)

1988 c. 1: Section 788 was extended by section 277 of the Taxation of Chargeable Gains Act 1992 (c. 12). It has also been relevantly amended 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).

(2)

2006 c. 25.