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

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.

Draft Statutory Instruments

2006 No.

income tax

Corporation tax

capital gains tax

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

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 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—

Citation

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

Double taxation arrangements to have effect

2.  It is declared that—

(a) the arrangements specified in the Convention set out in Part 1 of the Schedule to this Order, and in the Exchange of Notes constituting an Agreement set out in Part 2 of that Schedule, have been made with the Government of the Republic of Botswana 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 Botswana;

(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 Botswana 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

Article 2

SCHEDULE

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 Botswana (“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 and in the Exchange of Notes contained in Part 2 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 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 6^th April in the calendar year next following the date the Convention enters into force, and in respect of corporation tax, for any financial year beginning on or after 1^st April in the calendar year next following that date. It will take effect in Botswana in respect of income tax and capital gains tax on taxable income and gains derived on or after 1^st July of the year next following that of the entry into force of the Convention (see Article 29 of the Convention).

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

(1)

1988 c. 1. Section 788 is extended by section 277 of the Taxation of Chargeable Gains Act 1992 (c. 12). It has also been amended: the relevant amendment is that made by section 198(1) and (2) of the Finance Act 2003 (c.14).