The Double Taxation Relief and International Tax Enforcement (Taxes on Income and Capital) (Netherlands) Order 2009

Statutory Instruments

2009 No. 227

Capital Gains Tax

Corporation Tax

Income Tax

The Double Taxation Relief and International Tax Enforcement (Taxes on Income and Capital) (Netherlands) Order 2009

Made

11th February 2009

At the Court at Buckingham Palace, the 11th day of February 2009

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 that 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 and International Tax Enforcement (Taxes on Income and Capital) (Netherlands) Order 2009.

Double taxation arrangements to have effect

2.  It is declared that—

(a) the arrangements specified in the Convention set out in Part 1 of the Schedule to this Order and in the Protocol set out in Part 2 of that Schedule have been made with the Government of the Kingdom of the Netherlands 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 the Kingdom of the Netherlands;

(b) those arrangements include provisions with respect to the exchange of information foreseeably relevant to the administration, enforcement or recovery of the taxes, and debts relating to the taxes, covered by the arrangements including, in particular, provisions about the prevention of fiscal evasion with respect to those taxes;

(c) those arrangements also include provisions with respect to the assistance in the collection of taxes; and

(d) it is expedient that those arrangements should have effect.

Judith Simpson

Clerk of the Privy Council

Article 2

SCHEDULE

EXPLANATORY NOTE

(This note is not part of the Order)

A Convention concerning the avoidance of double taxation and prevention of fiscal evasion between the United Kingdom and the Kingdom of the Netherlands (“the Convention”) is set out in Part 1 of the Schedule to this Order.

Article 2 of this Order makes a declaration as to the effect and content of arrangements set out in the Convention and in the Protocol contained in Part 2 of the Schedule to this Order, and declares that it is expedient that those arrangements should have effect.

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

The Convention will enter into force on the fifth day after the date of the later of the notifications by each country of the completion of its legislative procedures, as provided by Article 30 of the Convention.

It will take effect in the United Kingdom as follows —

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

(b) in respect of corporation tax, for any financial year beginning on or after 1st April in the calendar year next following that in which the Convention enters into force.

It will take effect in the Kingdom of the Netherlands as follows—

(a) in respect of taxes withheld at source, for amounts paid or credited on or after 1st January next following the date upon which the Convention enters into force; and

(b) in respect of other taxes, for taxable years and periods beginning on or after 1st January next following the date upon which the Convention enters into force.

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

A full and final Impact Assessment has not been produced for this instrument as a negligible 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) was amended by section 88(1) of the Finance Act 2002 (c. 23). Subsection (10) was substituted by section 176 of the Finance Act 2006 (c. 25).

(2)

2006 c. 25.