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

Draft. This instrument was laid in draft and may differ from the one made. Look for the made version under its title.

Draft 2018, ISBN 9780111168127

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

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

Capital Gains Tax

Corporation Tax

Income Tax

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 2010f1 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—

Annotations to the whole text

Footnotes

f1

2010 c.8.

Contents

  1. 1Citation
  2. 2Double taxation and international enforcement arrangements to have effect
  3. Signature
  4. Schedule Schedule
  5. Explanatory note

1Citation

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

2Double taxation and international enforcement arrangements to have effect

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.

Signature

Name

Clerk of the Privy Council

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.