The Tax Information Exchange Agreement (Taxes on Income) (Netherlands Antilles) Order 2005

Made: 7th June 2005

At the Court at Buckingham Palace, the 7th day of June 2005Present,The Queen’s Most Excellent Majesty in Council

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Citation

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Declaration about exchange of information

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SCHEDULE

PART I — CONVENTION BETWEEN THE KINGDOM OF THE NETHERLANDS IN RESPECT OF THE NETHERLANDS ANTILLES AND THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND CONCERNING THE AUTOMATIC EXCHANGE OF INFORMATION REGARDING SAVINGS INCOME IN THE FORM OF INTEREST PAYMENTS

WHEREAS:

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The agreement between the Netherlands Antilles and the Netherlands, as stated in the previous paragraph, is contingent on the adoption by all the Member States of the laws, regulations and administrative provisions necessary to comply with the Directive, and on the requirements of Article 17 of the Directive being met.

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Through this Convention, the Netherlands Antilles agrees to apply the provisions of the Directive, subject to what is otherwise agreed herein, in regard of Beneficial Owners that are residents of the United Kingdom of Great Britain and Northern Ireland and the United Kingdom of Great Britain and Northern Ireland agrees to apply the Directive in regard to Beneficial Owners that are residents of the Netherlands Antilles.

Article 1 — General Scope

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Article 2 — Definitions

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Article 3 — Identity and residence of beneficial owners

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Article 4 — Automatic exchange of information

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Article 5 — Transitional provisions

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Article 6 — Revenue sharing

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Article 7 — Exceptions to the withholding procedure

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Article 8 — Elimination of double taxation

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Article 9 — Other withholding taxes

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Article 10 — Transposition

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Article 11 — Annex

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Article 12 — Entry Into Force

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Article 13 — Termination

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Done in, English and Dutch languages all texts being equally authentic. In case there is any divergence of interpretation between the different language versions of the texts, the English text shall prevail.

Annex — Text of Article 7 of Directive 77/799/EEC of the Council of the European Union of 19th December, 1977 concerning mutual assistance by the competent authorities of the Member States in the field of direct taxation, certain excise duties and taxation of insurance premiums

“Provisions relating to secrecy

“PART II — Exchange of Notes

Note from the United Kingdom

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To the European Union

The Permanent Representative

Sir John Grant KCMG

15 February 2005

Your Excellency,

I have the honour to refer to the texts of respectively the “Convention between the Kingdom of the Netherlands in respect of the Netherlands Antilles and (Belgium, Austria and Luxembourg) concerning the automatic exchange of information regarding savings income in the form of interest payments”, the “Convention between the Kingdom of the Netherlands in respect of the Netherlands Antilles and (the EU Member State, other than Belgium, Austria and Luxembourg) concerning the automatic exchange of information regarding savings income in the form of interest payments”, the “Convention between the Kingdom of the Netherlands in respect of Aruba and (the EU Member State, other than Belgium, Austria and Luxembourg) concerning the automatic exchange of information regarding savings income in the form of interest payments” and the “Convention between the Kingdom of the Netherlands in respect of Aruba and (Belgium, Austria and Luxembourg) concerning the automatic exchange of information regarding savings income in the form of interest payments”, that resulted from the negotiations with the Netherlands Antilles and Aruba on a Savings Tax Agreement, and that were annexed, respectively as Annex I, II, III and IV, to the Outcome of Proceedings of the High Level Working Party of the Council of Ministers of the European Union of 12 March (doc.7660/04 FISC 68).

In view of the above mentioned texts I have the honour to propose to you the “Convention concerning the automatic exchange of information regarding savings income in the form of interest payments” as contained in Appendix 1 to this letter, and our mutual undertaking to comply at the earliest possible date with our internal constitutional formalities for the entry into force of this Convention and to notify each other without delay when such formalities are completed.

Pending the completion of these internal procedures and the entry into force of this “Convention concerning the automatic exchange of information regarding savings income in the form of interest payments”, I have the honour to propose to you that the United Kingdom of Great Britain and Northern Ireland and the Kingdom of the Netherlands in respect of the Netherlands Antilles apply this Convention provisionally, so as far as is possible under their respective domestic constitutional requirements, as from 1 January 2005, or the date of application of Council Directive 2003/48/EC of 3 June 2003 on taxation of savings income in the form of interest payments, whichever is later.

I have the honour to propose that, if the above is acceptable to your Government, this letter together with its Appendix 1 and your confirmation to that effect shall together constitute an Agreement between the United Kingdom of Great Britain and Northern Ireland and the Kingdom of the Netherlands in respect of the Netherlands Antilles.

Please accept, Your Excellency, the assurance of my highest consideration,

John Grant

Permanent Representative of the United Kingdom of Great Britain and Northern Ireland

Note from the Kingdom of the Netherlands in respect of the Netherlands Antilles

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I have the honour to acknowledge receipt of your letter of 15 February 2005, which reads as follows:

Your Excellency, I have the honour to refer to the texts of respectively the “Convention between the Kingdom of the Netherlands in respect of the Netherlands Antilles and (Belgium, Austria and Luxembourg) concerning the automatic exchange of information regarding savings income in the form of interest payments”, the “Convention between the Kingdom of the Netherlands in respect of the Netherlands Antilles and (the EU Member State, other than Belgium, Austria and Luxembourg) concerning the automatic exchange of information regarding savings income in the form of interest payments”, the “Convention between the Kingdom of the Netherlands in respect of Aruba and (the EU Member State, other than Belgium, Austria and Luxembourg) concerning the automatic exchange of information regarding savings income in the form of interest payments” and the “Convention between the Kingdom of the Netherlands in respect of Aruba and (Belgium, Austria and Luxembourg) concerning the automatic exchange of information regarding savings income in the form of interest payments”, that resulted from the negotiations with the Netherlands Antilles and Aruba on a Savings Tax Agreement, and that were annexed, respectively as Annex I, II, III and IV, to the Outcome of Proceedings of the High Level Working Party of the Council of Ministers of the European Union of 12 March (doc.7660/04 FISC 68). In view of the above mentioned texts I have the honour to propose to you the “Convention concerning the automatic exchange of information regarding savings income in the form of interest payments” as contained in Appendix 1 to this letter, and our mutual undertaking to comply at the earliest possible date with our internal constitutional formalities for the entry into force of this Convention and to notify each other without delay when such formalities are completed. Pending the completion of these internal procedures and the entry into force of this “Convention concerning the automatic exchange of information regarding savings income in the form of interest payments”, I have the honour to propose to you that the United Kingdom of Great Britain and Northern Ireland and the Kingdom of the Netherlands in respect of the Netherlands Antilles apply this Convention provisionally, so as far as is possible under their respective domestic constitutional requirements, as from 1 January 2005, or the date of application of Council Directive 2003/48/EC of 3 June 2003 on taxation of savings income in the form of interest payments, whichever is later. I have the honour to propose that, if the above is acceptable to your Government, this letter together with its Appendix 1 and your confirmation to that effect shall together constitute an Agreement between the United Kingdom of Great Britain and Northern Ireland and the Kingdom of the Netherlands in respect of the Netherlands Antilles. Please accept, Your Excellency, the assurance of our highest consideration,

In reply, I am able to confirm that foregoing proposal is acceptable to the Kingdom of the Netherlands in respect of the Netherlands Antilles who will regard your letter, together with its Appendix 1, and this reply as constituting an agreement between the United Kingdom of Great Britain and Northern Ireland and the Kingdom of the Netherlands in respect of the Netherlands Antilles.

Please accept, Sir, the assurance of my highest consideration,

E.T.M. Delanooy

Willemstad, 12 April 2005

Signed

A. K. Galloway — Clerk of the Privy Council

Explanatory note

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Footnotes

[^f00001]: 1988 c. 1. Section 815C was inserted by section 146(1) of the Finance Act 2000 (c. 17). and amended by section 88(2) of the Finance Act 2002 (c. 23) and section 198 of the Finance Act 2003 (c. 14).

[^f00002]: OJ No. L157, 26.06.2003, p. 38.

[^f00003]: Not reproduced. Copies of the Directive are available on the Commission web site http://europa.eu.int/comm/index–en.htm or on the Inland Revenue web site at http://www.hmrc.gov.uk/esd-guidance/index.htm.

[^f00004]: The text as in force at the time of the making of this Agreement is set out below.

[^f00005]: OJ No. L73, 19.03.1976, p. 18.

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Editorial notes