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

Made: 11th February 2009

At the Court at Buckingham Palace, the 11th day of February 2009Present,The Queen’s Most Excellent Majesty in Council

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) (France) 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 French Republic 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 French Republic;

• (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; and

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

SCHEDULE

Signed

Judith Simpson — Clerk of the Privy Council

Explanatory note

(This note is not part of the Order)

EXPLANATORY NOTE

A Convention concerning the avoidance of double taxation and prevention of fiscal evasion between the United Kingdom and France (“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, 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 date of the later of the notifications by each country of the completion of its legislative procedures.

It will take effect in the United Kingdom—

• (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;

• (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; and

• (c) in respect of Article 9 of the Convention, for any chargeable period beginning on or after 1st April 1994.

The retroaction implicit in providing for Article 9 of the Convention to take effect for any chargeable period beginning on or after 1st April 1994 is authorised under section 788(8) of the Income and Corporation Taxes Act 1988.

It will take effect in France—

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

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

• (c) in respect of capital tax, for taxable events occurring on or after 1st January next following the date upon which the Convention enters into force; and

• (d) in respect of Article 9 of the Convention, for any calendar year or accounting period beginning on or after 1st January 1994.

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.

Footnotes

[^f00001]: 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).

[^f00002]: 2006 c. 25.