OpenLegislation

Part II EXCHANGE OF NOTES

Original text. Later amendments are not shown.

Your Excellency

London

15th October 1996

I have the honour to refer to the Protocol which has been signed today between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the Kingdom of Denmark (“the Protocol”) to amend the Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and Capital Gains signed at Copenhagen on 11 th November 1980 as amended by the Protocol signed at London on 1st July 199 1 (“the Convention”), and to propose on behalf of the Government of the United Kingdom of Great Britain and Northern Ireland that:

  • with reference to Articles 10(6), 11(6) and 12(5) of the Convention as amended by the Protocol, in the event that a resident of a Contracting State is denied relief from taxation in the other Contracting State by reason of one of those provisions, the competent authority of that other Contracting State shall notify the competent authority of the first-mentioned Contracting State; and

  • with reference to Article 22 of the Convention, by continuing to use the criterion of a holding of voting power in paragraph (l)(b) of Article 22 the Contracting States are exercising the option provided in paragraph 2 of Article 3 of Council Directive 90/435 EEC of 23rd July 1990 to derogate from paragraph 1 of that Article by replacing the criterion of a holding in the capital of a company of another Member State by that of a holding of voting rights.

If the foregoing proposal is acceptable to the Government of the Kingdom of Denmark, I have the honour to suggest that the present Note and Your Excellency’s reply to that effect shall be regarded as constituting an agreement between the two Governments in this matter which shall enter into force at the same time as the entry into force of this Protocol.

I avail myself of this opportunity to extend to Your Excellency the assurance of my highest consideration.

Nicholas Bonsor

Minister of State at the Foreign & Commonwealth Office