Draft Order laid before the House of Commons under section 788(10) of the Income and Corporation Taxes Act 1988, for an Address to Her Majesty from that House praying that an Order be made

2006 No.

income tax
Corporation tax
capital gains tax

The Double Taxation Relief (Taxes on Income) (Japan) Order 2006

Made

At the Court at Buckingham Palace, the * day of June 2006

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 19881, and an Address has been presented to Her Majesty by that House praying that an Order be made in terms of that draft:

Accordingly, Her Majesty, in exercise of the powers conferred upon Her by section 788 of that Act, and of all other relevant enabling powers, is pleased, by and with the advice of Her Privy Council, to order as follows—

Citation1

This Order may be cited as the Double Taxation Relief (Taxes on Income) (Japan) Order 2006.

Double taxation arrangements to have effect2

It is declared that—

a

the arrangements specified in the Convention set out in Part 1 of the Schedule to this Order, in the Protocol set out in Part 2 of that Schedule and in the Exchange of Notes constituting an Agreement set out in Part 3 of that Schedule, have been made with Japan with a view to affording relief from double taxation in relation to income tax, corporation tax and capital gains tax and taxes of a similar character imposed by the laws of Japan;

b

those arrangements include provisions with respect to the exchange of information foreseeably relevant to the administration or enforcement of the domestic laws of the United Kingdom and the laws of Japan concerning taxes covered by the arrangements including, in particular, provisions about the prevention of fiscal evasion with respect to those taxes; and

c

it is expedient that those arrangements should have effect.

Clerk of the Privy Council

SCHEDULE

Article 2

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EXPLANATORY NOTE

(This note is not part of the Order)

A Convention dealing with the avoidance of double taxation and fiscal evasion between the United Kingdom and Japan (“the Convention”) is set out in the Schedule to this Order.

Article 1 of the Order provides for its citation.

Article 2 makes a declaration as to the effect and content of the arrangements set out in the Convention contained in Part 1 of the Schedule to the Order, in the Protocol contained in Part 2 of the Schedule to the Order and in the Exchange of Notes contained in Part 3 of that Schedule, and 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.

The Convention will enter into force on the thirtieth day after the date of the later of the notifications by each country of the completion of its legislative procedures. It will take effect in the United Kingdom with respect to taxes withheld at source, to income derived on or after 1st January in the calendar year next following that in which the notice is given; with respect to income tax and capital gains tax, for any year of assessment beginning on or after 6th April in the calendar year next following that in which the notice is given; and with respect to corporation tax, for any financial year beginning on or after 1st April in the calendar year next following that date. It will take effect in Japan with respect to taxes withheld at source, for amounts taxable on or after 1st January in the calendar year next following that in which the notice is given; and with respect to taxes on income which are not withheld at source and the enterprise tax, as regards income for any taxable year beginning on or after 1st January in the calendar year next following that in which the notice is given.

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