The Double Taxation Relief (Taxes on Income) (Switzerland) Order 2007

Statutory Instruments

2007 No. 3465

income tax

corporation tax

capital gains tax

The Double Taxation Relief (Taxes on Income) (Switzerland) 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 the 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 (Taxes on Income) (Switzerland) Order 2007.

Double taxation arrangements to have effect

2.  It is declared that —

(a) the arrangements specified in the Protocol set out in Part I of the Schedule to this Order and in the Exchange of Notes set out in Part II of that Schedule which vary the arrangements set out in the Schedule to the Double Taxation Relief (Taxes on Income) (Switzerland) Order 1978(3) have been made with the Swiss Federal Council 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 Switzerland;

(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 Switzerland 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.

Judith Simpson

Clerk of the Privy Council

SCHEDULE

EXPLANATORY NOTE

(This note is not part of the Order)

The Protocol scheduled to this Order makes certain alterations to the Convention set out in the Schedule to S.I 1978/1408, the Double Taxation Relief (Taxes on Income) (Switzerland) Order 1978.

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 Protocol contained in Part I of the Schedule to the Order and in the Exchange of Notes contained in Part II and that it is expedient that those arrangements should have effect.

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

The Protocol 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 as follows—

(a) with respect to income tax and capital gains tax, for any year of assessment beginning on or after 6th April in the calendar year following that in which the Protocol enters into force; and

(b) with respect to corporation tax, for any financial year beginning on or after 1st April in the calendar year following that in which the Protocol enters into force; and

(c) with respect to tax credits in respect of dividends paid by companies which are residents of the United Kingdom, to terminate any entitlement to such tax credits in respect of dividends paid on or after 6th April next following the date on which this Protocol enters into force; and

(d) with respect to exchange of information falling within sub-paragraph (a) of paragraph 1 of Article 25, information shall be exchanged on or after the date on which the Protocol enters into force; and

(e) with respect to exchange of information falling within sub-paragraph (b) of paragraph 1 of Article 25, information shall be exchanged for any financial year beginning on or after the date on which the Protocol enters into force; and

(f) with respect to exchange of information falling within sub-paragraph (c) of paragraph 1 of Article 25, information shall be exchanged for offences committed on or after the date on which the Protocol enters into force.

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). It has also been amended. The relevant amendments are as follows: Subsection (1) has been amended by section 88(1) of the Finance Act 2002 (c. 23). Subsection (10) has been substituted by section 176 of the Finance Act 2006 (c. 25).

(2)

2006 c.25.

(3)

S.I. 1978/1408, amended by S.I. 1982/714 and 1994/3215