The Double Taxation Relief and International Tax Enforcement (Switzerland) Order 2012

EXPLANATORY NOTE

(This note is not part of the Order)

The Schedule to this Order contains an Exchange of Letters (“the Agreement”) which supplements a convention between the Government of the United Kingdom of Great Britain and Northern Ireland and the Swiss Federal Council for the Avoidance of Double Taxation with Respect to Taxes on Income (“the Convention”). The Convention was scheduled to The Double Taxation Relief (Taxes On Income) (Switzerland) Order 1978 (S.I. 1978/1408) and previously amended by the arrangements set out in the Schedules to The Double Taxation Relief (Taxes On Income) (Switzerland) Orders of 1982 (S.I. 1982/714), 1994 (S.I. 1994/3215), 2007 (S.I. 2007/3465) and the Double Taxation Relief and International Tax Enforcement (Switzerland) Order 2010 (S.I. 2010/2689). This Order brings the Agreement into effect.

The Convention aims to eliminate the double taxation of income arising in one country and paid to residents of the other country. It does this by allocating the taxing rights that each country has under its domestic law over the same income, and/or by providing relief from double taxation. It also provides for assistance in international tax enforcement.

The Agreement supplements the Convention by updating the exchange of information article (Article 25) in the Convention to bring it into line with the international standard for exchange of information as set out in the current Model Tax Convention on Income and on Capital published by the Organisation for Economic Cooperation and Development (“OECD”).

Article 1 provides for citation.

Article 2 makes a declaration as to the effect and content of the Agreement.

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 from the date of entry into force of the arrangements scheduled to the Double Taxation Relief and International Tax Enforcement (Switzerland) Order 2010 (S.I. 2010/2689).

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

A Tax Information and Impact Note has not been prepared for this Order as it gives effect to a previously announced policy to enact a double taxation agreement.