The Double Taxation Relief and International Tax Enforcement (Taxes on Income and Capital) (Faroes) Order 2007

Statutory Instruments

2007 No. 3469

income tax

corporation tax

capital gains tax

The Double Taxation Relief and International Tax Enforcement (Taxes on Income and Capital) (Faroes) Order 2007

Made

12th December 2007

At the Court at Buckingham Palace, the 12th day of December 2007

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 (Taxes on Income and Capital) (Faroes) Order 2007.

Double Taxation arrangements to have effect

2.  It is declared that—

(a) the arrangements specified in the Agreement set out in Part 1 of the Schedule to this Order and in the Protocol set out in Part 2 of that Schedule have been made with the Government of the Faroes 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 the Faroes;

(b) those arrangements include provisions with respect to the exchange of information foreseeably relevant to the administration, 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;

(c) those arrangements also include provisions with respect to the assistance in the collection of taxes; and

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

Judith Simpson

Clerk of the Privy Council

SCHEDULE

EXPLANATORY NOTE

(This note is not part of the Order)

An agreement dealing with the avoidance of double taxation and fiscal evasion between the United Kingdom and the Faroes (“the Agreement”) 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 arrangements set out in the Agreement contained in Part 1 of the Schedule to the Order and in the Protocol contained in Part 2 of that Schedule and that it is expedient that those arrangements should have effect.

A detailed explanation of the Agreement can be found in the Explanatory Memorandum published with the Agreement and which may be accessed on the web site 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 country of the completion of its legislative procedures.

It will take effect 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 notice is given; and

in respect of corporation tax, for any financial year beginning on or after 1st April next following the date on which the notice is given.

It will take effect in the Faroes—

in respect of income years beginning on or after 1st January in the calendar year next following the year in which such notice has been given (see Article 29 of the Agreement).

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

A full regulatory impact assessment has not been produced for this instrument as no impact on the private or voluntary sectors is foreseen.

(1)

1988 c.1: section 788 was extended by section 277 of the Taxation of Chargeable Gains Act 1992 (c. 12). Section 788(10) was also amended by section 176 of the Finance Act 2006 (c.25). Section 788(1) was amended by section 88(1) of the Finance Act 2002 (c.23).

(2)

2006 c .25.