146 International exchange of information: general.U.K.
(1)After section 815B of the Taxes Act 1988 there shall be inserted—
“815C Exchange of information with other countries.
(1)If Her Majesty by Order in Council declares that arrangements specified in the Order have been made with the government of any territory outside the United Kingdom with a view to the exchange of information necessary for carrying out—
(a)the domestic laws of the United Kingdom concerning income tax, capital gains tax and corporation tax in respect of income and chargeable gains; and
(b)the laws of the territory to which the arrangements relate concerning any taxes of a similar character to those taxes imposed by the laws of that territory,
and that it is expedient that those arrangements shall have effect, then those arrangements shall have effect notwithstanding anything in any enactment.
(2)Any Order in Council made under this section revoking an earlier such Order in Council may contain such transitional provisions as appear to Her Majesty to be necessary or expedient.
(3)An Order under this section shall not be submitted to Her Majesty in Council unless a draft of the Order has been laid before and approved by a resolution of the House of Commons.”.
(2)In subsection (2) of section 816 of that Act (disclosure of information), after “section 788" there shall be inserted “ or 815C ” and after that subsection there shall be inserted—
“(2ZA)Neither the Board nor an authorised officer of the Board shall disclose any information in pursuance of any arrangements having effect by virtue of section 815C unless satisfied that the government with which the arrangements are made is bound by, or has undertaken to observe, rules of confidentiality with respect to the information which are not less strict than those applying to it in the United Kingdom.”.
(3)Subsections (1) to (8) and (8C) to (9) of section 20 of the M1Taxes Management Act 1970 (powers to call for information relevant to liability to income tax, corporation tax or capital gains tax) shall have effect as if the references in those provisions to tax liability included a reference to liability to a tax which—
(a)is a tax of a territory outside the United Kingdom; and
(b)is covered by arrangements having effect under section 788 or 815C of the Taxes Act 1988 and containing provision with respect to the obtaining (as well as the disclosure) of information.
(4)In their application by virtue of subsection (3) above those provisions shall have effect as if—
(a)the reference in section 20(7A) to any provision of the Taxes Acts were a reference to any provision of the law of the territory concerned;
(b)the references in subsection (2) of section 20B to an appeal relating to tax were references to an appeal, review or similar proceedings under the law of that territory relating to the tax in question; and
(c)the reference in subsection (6) of that section to believing that tax has or may have been lost to the Crown were a reference to believing that the tax in question has or may have been lost to that territory.