The Double Taxation Relief and International Tax Enforcement (Canada) Order 2015

Draft Order in Council laid before the House of Commons under section 5(2) of the Taxation (International and Other Provisions) Act 2010 and section 173(7) of the Finance Act 2006, for approval by resolution of that House.

Draft Statutory Instruments

2015 No. 0000

Taxes

The Double Taxation Relief and International Tax Enforcement (Canada) Order 2015

Made

[day] [month] 2015

At the Court at Buckingham Palace, the [date] day of [month] 2015

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 5(2) of the Taxation (International and Other Provisions) Act 2010(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 2 of the Taxation (International and Other Provisions) Act 2010 and section 173(1) to (3) 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 (Canada) Order 2015.

Double taxation and international tax enforcement arrangements to have effect

2.  It is declared that—

(a) the agreement specified in the Exchange of Letters set out in the Schedule to this Order (“the Agreement”), which supplements the provision for arbitration set out in the Schedule to the Double Taxation Relief (Taxes on Income) (Canada) Order 1980(3) has been made with the Government of Canada;

(b) the Agreement has been made with a view to prescribing the manner in which arbitration shall be conducted; and

(c) it is expedient that the Agreement should have effect.

Name

Clerk of the Privy Council

Article 2

SCHEDULE

PART 1

PART 2

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 Government of Canada for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital gains (“the Convention”).

The Convention is set out in the Schedule to the Double Taxation Relief (Taxes on Income) (Canada) Order 1980 (S.I. 1980/709) as amended by the arrangements set out in the Schedules to the Double Taxation Relief (Taxes on Income) (Canada) (No.2) Order 1980 (S.I. 1980/1528), the Double Taxation Relief (Taxes on Income) (Canada) Order 1985 (S.I. 1985/1996), the Double Taxation Relief (Taxes on Income) (Canada) Order 2003 (S.I. 2003/2619), and the Double Taxation Relief and International Tax Enforcement (Canada) Order 2014 (S.I. 2014/3274).

This Order brings the Agreement into effect.

Article 23 of the Convention (Mutual Agreement Procedure) was deleted and replaced by Article XII of the Schedule to The Double Taxation Relief and International Tax Enforcement (Canada) Order 2014. Paragraph 6 of Article 23 provides for arbitration to be conducted in the manner prescribed by the rules and procedures agreed upon by the Contracting States through an exchange of diplomatic notes. The Schedule to this Order contains that exchange of diplomatic notes.

Article 1 provides for citation.

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

The Agreement shall enter into force and have effect on the date of the later of the notifications by each country of the completion of its legislative procedures required to bring into force the Agreement.

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 tax information exchange agreement.

(1)

2010 c. 8

(2)

2006 c. 25.

(3)

S.I. 1980/709, as amended by S.I. 1980/1528, S.I. 1985/1996, S.I. 2003/2619, and S.I. 2014/3274.