The Double Taxation Relief (Base Erosion and Profit Shifting) Order 2018

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

Draft Statutory Instruments

2018 No. XXXX

Capital Gains Tax

Corporation Tax

Income Tax

The Double Taxation Relief (Base Erosion and Profit Shifting) Order 2018

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 5(2) of the Taxation (International and Other Provisions) Act 2010(1) and approved by 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, orders as follows—

Citation

1.  This Order may be cited as the Double Taxation Relief (Base Erosion and Profit Shifting) Order 2018.

Double taxation and international enforcement arrangements to have effect

2.  It is declared that—

(a) The arrangements specified in the Convention set out in the Schedule to this Order have been made;

(b) The arrangements have been made with a view to affording relief from double taxation in relation to capital gains tax, corporation tax and income tax and taxes of a similar character imposed by the laws of territories outside of the United Kingdom; and

(c) It is expedient that those arrangements should have effect.

Name

Clerk of the Privy Council

Article 2

SCHEDULE

EXPLANATORY NOTE

(This note is not part of the Order)

The Schedule to the Order contains an Agreement (“the Arrangements”) between the United Kingdom of Great Britain and Northern Ireland and 77 other jurisdictions to implement tax treaty related measures to prevent base erosion and profit shifting. The Order brings the Arrangements into effect.

The Arrangements aim to prevent base erosion and profit shifting through the abuse of tax treaties. This is done by modifying tax treaties between the signatories in order to implement recommendations resulting from the OECD/G20 Base Erosion and Profit Shifting project.

Article 1 provides for citation.

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

The Arrangements will enter into force on the first day of the month following the expiration of a period of three calendar months beginning on the date of deposit of the fifth instrument of ratification, acceptance or approval. For each Signatory ratifying, accepting, or approving the Arrangements after the deposit of the fifth instrument of ratification, acceptance or approval, the Arrangements shall enter into force on the first day of the month following the expiration of a period of three calendar months beginning on the date of the deposit by such Signatory of its instrument of ratification, acceptance or approval.

The Arrangements will take effect in accordance with the provisions of Article 35 of the Arrangements.

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 produced for the Order as it modifies the effect of double taxation agreement. Double taxation agreements impose no obligations on taxpayers, rather they seek to eliminate double taxation and fiscal evasion.

(1)

2010 c.8.