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Schedule 9

(Sections 59A and 59B)

DEDUCTIONS FOR HOBBY FARMING AND COMMUNITY ROAD REHABILITATION WORKS PROJECT

Part A

Hobby farming deduction

A maximum deduction of up to $5000 commencing income year 2013

Part B

Community road rehabilitation works deduction

A maximum deduction of up to $5000 commencing income year 2013

(Inserted by Act 3 of 2014)

CHAPTER 15.02
INCOME TAX ACT

SUBSIDIARY LEGISLATION

List of Subsidiary Legislation

1.	Income Tax (Evasion of Tax Payment) (Prevention) Rules – Section 151
2.	Income Tax (Exemptions) Proclamations – Section 25
3.	Income Tax (Double Taxation Relief) (United Kingdom) Order – Section 60
4.	Income Tax (Double Taxation Relief) (Canada) Order – Section 60
5.	Income Tax (Double Taxation Relief) (Sweden) Order – Section 60
6.	Income Tax (Double Taxation Relief) (Denmark) Order – Section 60
7.	Income Tax (Double Taxation Relief) (Norway) Order – Section 60
8.	Income tax (Double Taxation Relief) (U.S.A.) Order – Section 60
9.	Income Tax (Double Taxation Relief) (Switzerland) Order – Section 60
10.	Income Tax Forms Rules – Section 151
11.	Income Tax Appeals Against Assessments Rules – Section 151

Income Tax (Evasion of Tax Payment) (Prevention) Rules – Section 151

(Statutory Instruments 18/1971, 19/1977, 38/1993 and 32/1998)

Statutory Instrument 18/1971 .. in force 26 June 1971

Amended by S.I. 19/1977 .. in force 9 April 1977

Amended by S.I. 38/1993 .. in force 3 July 1993

Amended by S.I. 32/1998 .. in force 1 May 1998

ARRANGEMENT OF REGULATIONS

1.	Citation
2.	Exit Certificates
3.	Persons Exempted from Operation of Rule 2
4.	Immigration Officer to grant Permission to Leave
5.	Power of Comptroller to forbid sale of Ticket
6.	Right of Appeal
7.	Power of Police to Prevent Departure of Persons
8.	Penalty
Schedule

INCOME TAX (EVASION OF TAX PAYMENT) (PREVENTION) RULES – SECTION 151

Commencement [26 June 1971]

1. Citation

These Rules may be cited as the Income Tax (Evasion of Tax Payment) (Prevention) Rules.Editor's note: These rules are made under the Income Tax Act, 1965. This Act was repealed and replaced by the Income Tax Act. However, these rules continue in force under section 153.

2. Exit Certificates

(1) Subject to the provisions of rule 3 a person shall not leave or attempt to leave the State unless the person so leaving or attempting to leave has in his or her possession an exit certificate in the Form A contained in the Schedule duly signed by or on behalf of the Comptroller certifying that he or she—
1. (a) does not owe any income tax; or
1. (b) has made satisfactory arrangements for the payment of any income tax payable by him or her.

(2) Subject to the provisions of rule 3 a person shall not issue or cause to be issued to any other person any ticket entitling such other person to leave the State unless such other person has in his or her possession an exit certificate as in the last preceding subrule mentioned.

(3) A person shall not—
1. (a) accept or cause to be accepted as a passenger or otherwise any other person to whom this rule applies; or
1. (b) arrange or cause to be arranged any transportation for any person to whom this rule applies to leave the State,

unless such other person produces or causes to be produced to the first-named person a valid certificate issued to such other person by or on behalf of the Comptroller.

(4) Every person to whom this rule applies when about to leave the State, shall, if required so to do by any immigration officer, surrender to such immigration officer a valid exit certificate issued to him or her by or on behalf of the Comptroller.

(5) An exit certificate shall be valid for such period as might be stated therein and not thereafter.

(6) The following fees shall be payable in respect of every certificate issued under this rule.

A	Single Exit Certificate		$
	(i)	individual with no tax liability	5
	(ii)	pensioners with no other source of income	5
	(iii)	all other individuals	10
B	For each Exit Certificate valid for 3 months		40
C	For each Exit Certificate valid for 6 months		60
D	For each Exit Certificate valid for 12 months		120

(Substituted by S.I. 38/1993)

3. Persons Exempted from Operation of Rule 2

(1) Rule 2 shall not apply to—
1. (a) any person of the age of 16 years or under;
1. (b) any person of the age of 25 years or under, who is a whole time student at a secondary school, college or university;
1. (c) any married woman living with her husband, the latter being resident in the State;
1. (d) the Governor General, his or her spouse and children under 21 years of age;
1. (e)
  1. (i) members of the House of Assembly,
  1. (ii) public officers of the State when travelling on Government business;
1. (f) any member of the military, naval or air forces of Her Majesty or of any foreign State;
1. (g) any person in the diplomatic or consular service of Her Majesty or foreign state unless any such person is also engaged in any business or other employment in the State;
1. (h) any high official, his or her spouse and children under 21 years of age and any other official of any organisation in respect of which a declaration has been made by order of the Minister under and for the purpose of the International Organisations and Overseas Countries (Immunities and Privileges) Act and any representative of any other Government as defined in any such order;
1. (i) any person temporarily resident in the State; for the purposes of this paragraph a person is temporarily resident in the State whose total period of residence in any one year does not exceed 6 months;
1. (j) any trafficker or other person who by reason of the nature of his or her occupation or employment the Comptroller deems it expedient to exempt, and who holds a certificate of exemption issued by the Comptroller; and
1. (k) ministers of religion, their spouses and children under 16 years of age;
1. (l) any citizen or permanent resident of Saint Lucia.
1. (Amended by S.I. 32/1998)

(2) The certificate of exemption under this rule shall be in the Form B in the Schedule.

4. Immigration Officer to grant Permission to Leave

(1) Despite anything to the contrary in these Rules if an immigration officer is satisfied, on application made to him or her by any person, that circumstances have arisen in which it is impracticable for such person before leaving the State to apply to the Comptroller for an exit certificate or a certificate of exemption then—
1. (a) if such person satisfies the immigration officer that he or she has paid all income tax then due and owing by him or her on his or her own behalf or on behalf of some other person or has made satisfactory arrangements for the payment thereof; or
1. (b) if such person or any other person on his or her behalf enters into a bond in the Form D of the Schedule, with such surety or sureties, if any, as an immigration officer shall require in the sum of $1,000 for the payment by such person of any income, tax due and owing by him or her; or
1. (c) if such person satisfies the immigration officer that he or she is exempted from complying with the provisions of rule 2,

such immigration officer shall issue to such person a certificate in the Form C in the Schedule (in these rules referred to as a “special certificate of exemption”); and every person holding a valid special certificate of exemption is exempt from complying with the provisions of rule 2.

(2) An immigration officer who issues a special certificate of exemption shall, without delay, forward a copy of such certificate together with the relevant bond, if any, to the Comptroller.

(3) A special certificate of exemption shall be valid for such period from the date of its issue as may be stated therein and not thereafter.

(4) Any person who has obtained from an immigration officer a special certificate of exemption under subrule (1) shall, when about to leave the State, if required so to do by any immigration officer, surrender such certificate to such immigration officer.

(5) If an individual, upon his or her arrival in the State, satisfies an immigration officer that he or she is visiting the State for a temporary purpose (not with a view to deriving or earning income in the State) for a period not exceeding 30 days, the immigration officer shall mark the passport or other travel document issued in the name of that individual with an official stamp mark bearing the date of such arrival and the letters “E.W.T.C.” (denoting Exit Without Tax Certificate) and during the period of 30 days commencing on that date, whenever necessary for the purpose of these Rules in lieu of producing a tax certificate, that individual may produce his or her passport or other travel document so marked.

5. Power of Comptroller to forbid sale of Ticket

Despite anything to the contrary a person shall not issue or cause to be issued to any other person any ticket entitling such other person to leave the State and shall not arrange for any transportation for such other person to leave the State if a written request is issued by or on behalf of the Comptroller to such first named person prohibiting the issue of a ticket to such other person.

However, the provisions of this rule cease to have effect on the receipt by such first named person of a subsequent written request issued by or on behalf of the said Comptroller withdrawing such prohibition.

6. Right of Appeal

Any person aggrieved by—

(a) the refusal of the Comptroller to grant to such person an exit certificate or a certificate of exemption under these rules; or

(b) the request of the Comptroller prohibiting the issue of a ticket to such person, or the refusal of the Comptroller to issue a request withdrawing any such prohibition,

may appeal to the Minister whose decision thereon is final.

7. Power of Police to Prevent Departure of Persons

It is lawful for any police officer who has reasonable grounds to suspect that any person is attempting to leave the State in breach of the provisions of rules 2, 3 or 4 to order such person to disembark from or not to embark on any ship or aircraft, and to arrest such person without a warrant if he or she disobeys any such order.

8. Penalty

If any person contravenes or fails to comply with any provisions of these Rules, he or she commits an offence and is liable on summary conviction to a penalty not exceeding $1000. (Amended by S.I. 19/1997)

Schedule

FORM A			(Rule 2)
Income Tax Act
EXIT CERTIFICATE
(to be presented to shipping or air transport lines and to be surrendered on demand to an immigration officer at the place of departure).
................................................. 20 ...............
Applicant .........................................................
Address .........................................................
Occupation .................................................
This is to certify that the above person
	*(i)	does not owe any income tax, or
	(ii)	has made satisfactory arrangements for the payment of any income tax payable by him or her, and that the Comptroller has no objection to a ticket being issued to the above person to leave the State.
...........................................................
Comptroller.
* Delete what is not applicable.

FORM B	(Rule 3)
Income Tax Act
CERTIFICATE OF EXEMPTION
(to be presented to shipping or air transport lines and to be surrendered on demand to an immigration officer at the place of departure).
.................................................... 20 .............
Applicant .....................................................
Address ................................................
Occupation .........................................
*This is to certify that the above person is exempt from producing an exit certificate on the grounds that such person is ........................................... and that the Comptroller has no objection to a ticket being issued to the above person to leave the State.
...........................................................
Comptroller.
*Insert what is applicable.

FORM C		(Rule 4)
Income Tax Act
SPECIAL CERTIFICATE OF EXEMPTION
(to be presented to shipping or air transport lines and to be surrendered on demand to an immigration officer at the place of departure).
This certificate is issued to .......................................................................
(Full name and occupation)
of .....................................................................................................................
being holder of .............................................. Passport No ............................
(Nationality and No. of Passport)
This is to certify that the said .............................................................. is exempted from producing an exit certificate—
*(a)	paid all income tax now due and owing by him or her;
*(b)	make satisfactory arrangements for the payment of any income tax now due and owing by him or her;
*(c)	entered into a Bond in the sum of ............................................. with one or more sureties.
Issued this .................................... day of ....................................... 20 ..........
.................................................................
Immigration Officer.
*(a), (b) or (c) to be deleted as appropriate.
N.B.—This certificate is valid for a period of 2 clear days from the date of its issue and not thereafter.

FORM D

Income Tax Act

BOND

SAINT LUCIA.

Know All Men By These Presents That I .............................. of .............................., and I (We) .............................. of .............................., and .............................. of .............................. in the State of Saint Lucia (hereinafter referred to as the surety or sureties) are held and firmly bound unto the Comptroller of Inland Revenue of the said State in the sum of $.................... to be paid to the said Comptroller, for which payment to be well and truly made we bind ourselves and each one of us, our and each of our heirs, executors and administrators jointly and severally by these presents.

Dated this ................................. day of ..................................... 20...........

Whereas .............................. is desirous of leaving the State and has not satisfied an immigration officer that he or she has paid the income tax now due and owing by him or her, or that he or she has made satisfactory arrangements for the payment of such income tax.

And Whereas the said surety or sureties, desire to enable the said .............................. to leave the State.

Now, Therefore, the condition of the above-written bond are as follows—

(a) if the said .............................. returns to the State within 6 months of the date of this Bond; or

(b) pays or makes arrangements for the payment of the income tax due and owing by him or her on the day of his or her departure from the State, then the above-written bond is void, but otherwise the same remains in full force and virtue.

Signed ...................................................

of ..........................................................

Signed ...................................................

(Surety)

of ..........................................................

Signed ...................................................

(Surety)

of ..........................................................

Before me

............................................................

Immigration Officer.

Income Tax (Exemptions) Proclamations – Section 25Editor's note: This Proclamation was continued under the Income Tax Act, 1965. That Act was repealed and replaced by the Income Tax Act. However, the Proclamation continues in force under section 153.

(Statutory Instruments 5/1924 and 93/1941)

Statutory Instrument 5/1924 and 93/1941

It is hereby declared that the interest payable on all loans charged on the Public Revenue of Saint Lucia or on the revenue of any local authority to persons not resident in Saint Lucia is exempted from income tax as from 1 January 1924.

It is hereby declared that the interest payable on any Saint Lucia Savings Certificates issued by the Government of Saint Lucia is exempted from income tax.

Income Tax (Double Taxation Relief) (United Kingdom) Order – Section 60Editor's note: This Order was continued under the Income Tax Act, 1965. That Act was repealed and replaced by the Income Tax Act. However, the Order continues in force under section 153.

(Statutory Instruments 33/1949, 33/1951 and 25/1968)

Statutory Instrument 33/1949 .. in force:

Paragraph 6(3) of Schedule: 7 September 1968

Paragraphs 13(1) and 13(2) of Schedule: 1 January 1968

Remainder: 28 May 1949

Amended by S.I. 33/1951

Amended by S.I. 25/1968 .. in force 7 September 1968

Revoked by S.I. 95/2018 .. in force 29 October 2018

ARRANGEMENT OF REGULATIONS

1.	Citation
2.	Declaration
Schedule

INCOME TAX (DOUBLE TAXATION RELIEF) (UNITED KINGDOM) ORDER – SECTION 60

Commencement

[Paragraph 6(3) of Schedule: 7 September 1968]

[Paragraphs 13(1) and 13(2) of Schedule: 1 January 1968 Remainder: 28 May 1949]

1. Citation

This Order may be cited as the Income Tax (Double Taxation Relief) (United Kingdom) Order.

2. Declaration

It is hereby declared—

(a) that the arrangements specified in the Arrangement set out in the Schedule to this Order were made with the Government of the United Kingdom with a view to affording relief from double taxation in relation to income tax or profits tax and taxes of a similar character imposed by the laws of the United Kingdom; and

(b) that it is expedient that those arrangements have effect.

Schedule

Arrangement Between His Majesty's Government and the Government of Saint Lucia for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income

1.
1. (1) The taxes which are the subject of this Arrangement are—
  1. (a) In the United Kingdom:
1. The Income tax (including surtax) and the profits tax (hereinafter referred to as “United Kingdom tax”).
  1. (b) In Saint Lucia:
1. The Income tax (hereinafter referred to as “Saint Lucia tax”).

(2) This Arrangement shall also apply to any other taxes of a substantially similar character imposed in the United Kingdom or Saint Lucia after this Arrangement has come into force.

2.
1. (1) In this Arrangement, unless the context otherwise requires—
  1. (a) The term “United Kingdom” means Great Britain and Northern Ireland, excluding the Channel Islands and the Isle of Man.
  1. (b) (Repealed by S.I. 25/1968)
  1. (c) The terms “one of the territories” and “the other territory” mean the United Kingdom or Saint Lucia, as the context requires.
  1. (d) The term “tax” means United Kingdom tax or Saint Lucia tax, as the context requires.
  1. (e) The term “person” includes any body of persons, corporate or not corporate.
  1. (f) The term “company” includes any body corporate.
  1. (g) The terms “resident of the United Kingdom” and “resident of Saint Lucia” mean respectively any person who is resident in the United Kingdom for the purposes of United Kingdom tax and not resident in Saint Lucia for the purposes of Saint Lucia tax and any person who is resident in Saint Lucia for the purposes of Saint Lucia tax and not resident in the United Kingdom for the purposes of United Kingdom tax; and a company shall be regarded as resident in the United Kingdom if its business is managed and controlled in the United Kingdom and as resident in Saint Lucia if its business is managed and controlled in Saint Lucia.
  1. (h) The terms “resident of one of the territories” and “resident of the other territory” mean a person who is a resident of the United Kingdom or a person who is a resident of Saint Lucia, as the context requires.
  1. (i) The terms “United Kingdom enterprise” and “Saint Lucia enterprise” mean respectively an industrial or commercial enterprise or undertaking carried on by a resident of the United Kingdom and an industrial or commercial enterprise or undertaking carried on by a resident of Saint Lucia; and the terms “enterprise of one of the territories” and “enterprise of the other territory” mean a United Kingdom enterprise or a Saint Lucia enterprise, as the context requires.
  1. (j) The term “industrial or commercial profits” includes rentals in respect of cinematograph films.
  1. (k) The term “permanent establishment”, when used with respect to an enterprise of one of the territories means a branch, management or other fixed place of business, but does not include an agency unless the agent has, and habitually exercises, a general authority to negotiate and conclude contracts on behalf of such enterprise or has a stock of merchandise from which he regularly fills orders on its behalf.
    1. An enterprise of one of the territories shall not be deemed to have a permanent establishment in the other territory merely because it carries on business dealings in that other territory through a bona fide broker or general commission agent acting in the ordinary course of his business as such.
    1. The fact that an enterprise of one of the territories maintains in the other territory a fixed place of business exclusively for the purchase of goods or merchandise shall not of itself constitute that fixed place of business a permanent establishment of the enterprise.
    1. The fact that a company which is a resident of one of the territories has a subsidiary company which is a resident of the other territory or which is engaged in trade or business in that other territory (whether through a permanent establishment or otherwise) shall not of itself constitute that subsidiary company a permanent establishment of its parent company.
1. (2) Where under this Arrangement any income is exempt from tax in one of the territories if (with or without other conditions) it is subject to tax in the other territory, and that income is subject to tax in that other territory by reference to the amount thereof which is remitted to or received in that other territory, the exemption to be allowed under this Arrangement in the first-mentioned territory shall apply only to the amount so remitted or received.
1. (3) In the application of the provisions of this Arrangement by the United Kingdom or Saint Lucia, any term not otherwise defined shall, unless the context otherwise requires, have the meaning which it has under the laws of the United Kingdom, or, as the case may be, Saint Lucia, relating to the taxes which are the subject of this Arrangement.

3.
1. (1) The industrial or commercial profits of a United Kingdom enterprise shall not be subject to Saint Lucia tax unless the enterprise is engaged in trade or business in Saint Lucia through a permanent establishment situated therein. If it is so engaged, tax may be imposed on those profits by Saint Lucia but only on so much of them as is attributable to that permanent establishment.
1. (2) The industrial or commercial profits of a Saint Lucia enterprise shall not be subject to the United Kingdom tax unless the enterprise is engaged in trade or business in the United Kingdom through a permanent establishment situated therein. If it is so engaged, tax may be imposed on those profits by the United Kingdom, but only on so much of them as is attributable to that permanent establishment.
1. (3) Where an enterprise of one of the territories is engaged in trade or business in the other territory through a permanent establishment situated therein, there shall be attributed to that permanent establishment the industrial or commercial profits which it might be expected to derive from its activities in that other territory if it were an independent enterprise engaged in the same or similar activities under the same or similar conditions and dealing at arm's length with the enterprise of which it is a permanent establishment
1. (4) No portion of any profits arising from the sale of goods or merchandise by an enterprise of one of the territories shall be attributed to a permanent establishment situated in the other territory by reason of the mere purchase of the goods or merchandise within that other territory.

4. Where—
1. (a) an enterprise of one of the territories participates directly or indirectly in the management, control or capital of an enterprise of the other territory, or
1. (b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of one of the territories and an enterprise of the other territory, and
1. (c) in either case conditions are made or imposed between the 2 enterprises, in their commercial or financial relations, which differ from those which would be made between independent enterprises,

then any profits which would but for those conditions have accrued to one of the enterprises but by reason of those conditions have not so accrued may be included in the profits of that enterprise and taxed accordingly.

5. Notwithstanding the provisions of paragraphs 3 and 4, profits which a resident of one of the territories derives from operating ships or aircraft shall be exempt from tax in the other territory.

6.
1. (1) Dividends paid by a company resident in one of the territories to a resident of the other territory who is subject to tax in that other territory in respect thereof and not engaged in trade or business in the first-mentioned territory through a permanent establishment situated therein, shall be exempt from any tax in that first mentioned territory which is chargeable on dividends in addition to the tax chargeable in respect of the profits or income of the company.
1. (2) Where a company which is a resident of one of the territories derives profits or income from sources within the other territory, the Government of that other territory shall not impose any form of taxation on dividends paid by the company to persons not resident in that other territory or any tax in the nature of an undistributed profits tax on undistributed profits of the company, by reason of the fact that those dividends or undistributed profits represent, in whole or in part, profits or income so derived.
1. (3) If the recipient of a dividend is a company which owns 10% or more of the class of shares in respect of which the dividend is paid then subparagraph (1) shall not apply to the dividend to the extent that it can have been paid only out of profits which the company paying the dividend earned or other income which it received in a period ending 12 months or more before the relevant date. For the purposes of this subparagraph the term “relevant date” means the date on which the beneficial owner of the dividend became the owner of 10% or more of the class of shares in question. Provided that this subparagraph shall not apply if the beneficial owner of the dividend shows that the shares were acquired for bona fide commercial reasons and not primarily for the purpose of securing the benefit of this paragraph.

(Amended by S.I.25/1968)

7.
1. (1) Any royalty derived from sources within one of the territories by a resident of the other territory who is subject to tax in that other territory in respect thereof and is not engaged in trade or business in the first-mentioned territory through a permanent establishment situated therein, shall be exempt from tax in that first mentioned territory; but no exemption shall be allowed under this paragraph in respect of so much of any royalty as exceeds an amount which represents a fair and reasonable consideration for the rights for which the royalty is paid.
1. (2) In this paragraph the term “royalty” means any royalty or other amount paid as consideration for the use of, or for the privilege of using any copyright, patent, design, secret process or formula, trade-mark, or other like property, but does not include a royalty or other amount paid in respect of the operation of a mine or quarry or of other extraction of natural resources.

8.
1. (1) Remuneration, including pensions, paid by the Government of one of the territories to any individual for services rendered to that Government in the discharge of governmental functions shall be exempt from tax in the other territory if the individual is not ordinarily resident in that other territory or (where the remuneration is not a pension) is ordinarily resident in that other territory solely for the purpose of rendering those services.
1. (2) The provisions of this paragraph shall not apply to payments in respect of services rendered in connection with any trade or business carried on by either of the Governments for purposes of profit.

9.
1. (1) An individual who is a resident of the United Kingdom shall be exempt from Saint Lucia tax on profits or remuneration in respect of personal (including professional) services performed within Saint Lucia in any year of assessment if—
  1. (a) he is present within Saint Lucia for a period or periods not exceeding in the aggregate 183 days during that year, and
  1. (b) the services are performed for or on behalf of a person resident in the United Kingdom, and
  1. (c) the profits or remuneration are subject to United Kingdom tax.
1. (2) An individual who is a resident of Saint Lucia shall be exempt from United Kingdom tax on profits or remuneration in respect of personal (including professional) services performed within the United Kingdom in any year of assessment if—
  1. (a) he is present within the United Kingdom for a period or periods not exceeding in the aggregate 183 days during that year, and
  1. (b) the services are performed for or on behalf of a person resident in Saint Lucia, and
  1. (c) the profits or remuneration are subject to Saint Lucia tax.
1. (3) The provisions of this paragraph shall not apply to the profits or remuneration of public entertainers such as stage, motion picture or radio artists, musicians and athletes.

10.
1. (1) Any pension (other than a pension paid by the Government of Saint Lucia for services rendered to it in the discharge of governmental functions) and any annuity, derived from sources within Saint Lucia by an individual who is a resident of the United Kingdom and subject to United Kingdom tax in respect thereof, shall be exempt from Saint Lucia tax.
1. (2) Any pension (other than a pension paid by the Government of the United Kingdom for services rendered to it in the discharge of governmental functions) and any annuity, derived from sources within the United Kingdom by an individual who is a resident of Saint Lucia and subject to Saint Lucia tax in respect thereof, shall be exempt from United Kingdom tax.
1. (3) The term “annuity” means a stated sum payable periodically at stated times, during life or during a specified or ascertainable period of time, under an obligation to make the payments in consideration of money paid.

11. The remuneration derived by a professor or teacher who is ordinarily resident in one of the territories, for teaching, during a period of temporary residence not exceeding 2 years, at a university, college, school or other educational institution in the other territory, shall be exempt from tax in that other territory.

12. A student or business apprentice from one of the territories who is receiving full-time education or training in the other territory shall be exempt from tax in that other territory on payments made to him by persons in the first-mentioned territory for the purposes of his maintenance, education or training.

13.
1. (1) Subject to the provisions of the law of the United Kingdom regarding the allowance as a credit against United Kingdom tax or tax payable in a territory outside the United Kingdom (which shall not effect the general principle hereof)—
  1. (a) Saint Lucia tax payable under the laws of Saint Lucia and in accordance with this Arrangement, whether directly or by deduction, on profits or income from sources within Saint Lucia shall be allowed as a credit against any United Kingdom tax computed by reference to the same profits or income by reference to which Saint Lucia tax is computed. Provided that in the case of a dividend the credit shall only take into account such tax in respect thereof as is additional to any tax payable by the company on the profits out of which the dividend is paid and is ultimately borne by the recipient without reference to any tax so payable.
  1. (b) Where a company which is a resident of Saint Lucia pays a dividend to a company resident in the United Kingdom which controls directly or indirectly at least 10% of the voting power in the first-mentioned company, the credit shall take into account (in addition to any Saint Lucia tax for which credit may be allowed under (a) of this subparagraph) the Saint Lucia tax payable by that first-mentioned company in respect of the profits out of which such dividend is paid.
1. (2) Subject to the provisions of the law of Saint Lucia regarding the allowance as a credit against Saint Lucia tax of tax payable in a territory outside Saint Lucia (which shall not affect the general principle hereof)—
  1. (a) United Kingdom tax payable under the laws of the United Kingdom and in accordance with this Arrangement, whether directly of by deduction, on profits or income from sources within the United Kingdom shall be allowed as a credit against any Saint Lucia tax computed by reference to which the profits or income by reference to which the United Kingdom tax is computed. Provided that in the case of a dividend the credit shall only take into account such tax in respect thereof as is additional to any tax payable by the company on the profits out of which the dividend is paid and is ultimately borne by the recipient without reference to any tax so payable.
  1. (b) Where a company which is a resident of the United Kingdom pays a dividend to a company resident in Saint Lucia which controls directly or indirectly at least 10% of the voting power in the first-mentioned company, the credit shall take into account (in addition to any United Kingdom tax for which credit may be allowed under (a) of this subparagraph) the United Kingdom tax payable by that first-mentioned company in respect of the profits out of which such dividend is paid.
1. (3) For the purposes of this paragraph profits or remuneration for personal (including professional) services performed in one of the territories shall be deemed to be income from sources within that territory, and the services of an individual whose services are wholly or mainly performed in ships or aircraft operated by a resident of one of the territories shall be deemed to be performed in that territory.
1. (4) Where Colonial income tax is payable for a year for which this arrangement has effect in respect of any income in respect of which United Kingdom income tax is payable for a year prior to the year beginning on the 6th April, 1949, then—
  1. (a) in the case of a person resident in Saint Lucia, the Colonial income tax shall, for the purposes of subparagraph (2) of this paragraph, be deemed to be reduced by the amount of any relief allowable in respect thereof under the provisions of section 27 of the United Kingdom Finance Act, 1920; and
  1. (b) in the case of a person resident in the United Kingdom, the provisions of section 50 of the Saint Lucia Income Tax Act, 1948, shall apply for the purposes of the allowance of relief from the Saint Lucia tax.
  1. (Amended by S.I. 25/1968)

14.
1. (1) The taxation authorities of the United Kingdom and Saint Lucia shall exchange such information (being information available under their respective taxation laws) as is necessary for carrying out the provisions of this Arrangement or for the prevention of fraud or the administration of statutory provisions against legal avoidance in relation to the taxes which are the subject of this Arrangement. Any information so exchanged shall be treated as secret and shall not be disclosed to any persons other than those concerned with the assessment and collection of the taxes which are the subject of this Arrangement. No information shall be exchanged which would disclose any trade secret or trade process.
1. (2) As used in this paragraph, the term “taxation authorities” means the Commissioners of Inland Revenue or their authorised representative in the case of the United Kingdom and the Commissioners of Income Tax or their authorised representative in the case of Saint Lucia.

15. This Arrangement shall come into force on the date on which the last of all such things shall have been done in the United Kingdom and Saint Lucia as are necessary to give the Arrangement the force of law in the United Kingdom and Saint Lucia respectively, and shall thereupon have effect—
1. (a) In the United Kingdom:
1. as respects income tax, for any year of assessment beginning on or after 6 April 1949; as respects surtax, for any year of assessment beginning on or after 6 April 1948; and as respects profits tax, in respect of the following profits—
  1. (i) profits arising in any chargeable accounting period beginning on or after the 1 April 1949;
  1. (ii) profits attributable to so much of any chargeable accounting period falling partly before and partly after that date as falls after that date;
  1. (iii) profits not so arising or attributable by reference to which income tax is, or but for the present Arrangement would be, chargeable for any year of assessment beginning on or after 6 April 1949;
1. (b) In Saint Lucia:
1. as respects income tax for the year of assessment beginning on 1 January 1949, and subsequent years.

16. This Arrangement shall continue in effect indefinitely but either of the Governments may, on or before 30 June in any calendar year after the year 1950, give notice of termination to the other Government and in such event, this Arrangement shall cease to be effective—
1. (a) In the United Kingdom:
1. as respects income tax, for any year of assessment beginning on or after the 6th April in the calendar year next following that in which the notice is given; and as respects surtax, for any year of assessment beginning on or after the 6th April in the calendar year in which the notice is given; and as respects profits tax, in respect of the following profits—
  1. (i) profits arising in any chargeable accounting period beginning on or after 1 April in the calendar year next following that in which the notice is given;
  1. (ii) profits attributable to so much of any chargeable accounting period falling partly before and partly after that date as falls after that date.
  1. (iii) profits not so arising or attributable by reference to which income tax is chargeable for any year of assessment beginning on or after 6 April in that next following calendar year;
1. (b) In Saint Lucia:
1. as respects income tax for any year of assessment beginning on or after 1 January in the calendar year next following that in which such notice is given.

Income Tax (Double Taxation Relief) (Canada) Order – Section 60

(Statutory Instrument 19/1953)

Statutory Instrument 19/1953 .. in force 4 April 1953

ARRANGEMENT OF REGULATIONS

1.	Citation
2.	Declaration
Schedule

INCOME TAX (DOUBLE TAXATION RELIEF) (CANADA) ORDER – SECTION 60

Commencement [4 April 1953]

Whereas it is provided by section 52(1) of the Income Tax Act, 1947Editor's note: This Act was repealed by the Income Tax Act, 1965 which itself was repealed and replaced by the Income Tax Act. This Order was continued in force by the 1965 Act and section 153 of the Income Tax Act. that if the Governor General by order declares that arrangements specified in the order have been made with the Government of any territory outside Saint Lucia with a view to affording relief from double taxation in relation to income tax and any tax of a similar character imposed by the laws of that territory and that it is expedient that those arrangements have effect, the arrangements have effect in relation to income tax despite anything in any enactment;

And Whereas by an Agreement dated 5 June 1946, between the Government of the United Kingdom and the Government of Canada, arrangements were made, among other things, for the avoidance of double taxation;

And Whereas provision is made in the said Agreement for the application by means of a notification of extension given to the other Government by either of the said Governments of the said Agreement to all or any of its colonies, overseas territories, protectorates or territories in respect of which it exercises a mandate or trusteeship, that impose taxes substantially similar in character to those that are the subject of the said Agreement:

And Whereas by a notification dated 9 May 1952, the said Agreement was applied to Saint Lucia.

1. Citation

This Order may be cited as the Income Tax (Double Taxation Relief) (Canada) Order.

2. Declaration

It is hereby declared—

(a) that the arrangements specified in the Schedule to this Order subsist between the Government of Saint Lucia and the Government of Canada in manner provided by Article XV of the Schedule to this Order;

(b) that it is expedient that those arrangements have effect subject to modification of Article VI(3) of the Agreement contained in the Schedule to this Order substituting for the words “shall be exempt from United Kingdom surtax” of the words “is not liable to tax in Saint Lucia at a rate in excess of the rate applicable to a company”.

Schedule

(Section 2)

Agreement between the Government of the United Kingdom and the Government of Canada for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income

The Government of the United Kingdom of Great Britain and Northern Ireland and the Government of Canada, desiring to conclude an agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, have agreed as follows—

ARTICLE I

(1) The taxes which are the subject of the present Agreement are—
1. (a) In Canada:
1. The income taxes, including surtaxes and excess profits tax imposed by Canada (hereinafter referred to as “Canadian tax”).
1. (b) In the United Kingdom:
1. The income tax (including surtax), the excess profits tax and the national defence contribution (hereinafter referred to as “United Kingdom tax”).

(2) The present Agreement shall also apply to any other taxes of a substantially similar character imposed by either Contracting Government subsequently to the date of signature of the present Agreement or by the Government of any territory to which the present Agreement is extended under Article XV.

ARTICLE II

(1) In the present Agreement, unless the context otherwise requires—
1. (a) The term “United Kingdom” means Great Britain and Northern Ireland, excluding the Channel Islands and the Isle of Man.
1. (b) The terms “one of the territories” and “the other territory” mean the United Kingdom or Canada, as the context requires.
1. (c) The term “tax” means United Kingdom tax or Canadian tax, as the context requires.
1. (d) The term “person” includes any body of persons, corporate or not corporate.
1. (e) The term “company” includes any body corporate.
1. (f) The terms “resident of the United Kingdom” and “resident of Canada” mean respectively any person who is resident in the United Kingdom for the purposes of United Kingdom tax and not resident in Canada for the purposes of Canadian tax and any person who is resident in Canada for the purposes of Canadian tax and not resident in the United Kingdom for the purposes of United Kingdom tax; and a company shall be regarded as resident in the United Kingdom if its business is managed and controlled in the United Kingdom and as resident in Canada if its business is managed and controlled in Canada.
1. (g) The terms “resident of one of the territories” and “resident of the other territory” mean a person who is a resident of the United Kingdom or a person who is a resident of Canada, as the context requires.
1. (h) The terms “United Kingdom enterprise” and “Canadian enterprise” mean respectively an industrial or commercial enterprise or undertaking carried on by a resident of the United Kingdom and an industrial or commercial enterprise or undertaking carried on by a resident of Canada; and the terms “enterprise of one of the territories” and “enterprise of the other territory” mean a United Kingdom enterprise or a Canadian enterprise, as the context requires.
1. (i) The term “permanent establishment” when used with respect to an enterprise of one of the territories, means a branch or other fixed place of business, but does not include an agency unless the agent has, and habitually exercises, a general authority to negotiate and conclude contracts on behalf of such enterprise or has a stock of merchandise from which he regularly fills orders on its behalf.
1. An enterprise of one of the territories shall not be deemed to have a permanent establishment in the other territory merely because it carries on business dealings in that other territory through a bona fide broker or general commission agent acting in the ordinary course of his business as such.
1. The fact that an enterprise of one of the territories maintains in the other territory a fixed place of business exclusively for the purchase of goods or merchandise shall not of itself constitute that fixed place of business a permanent establishment of the enterprise.
1. The fact that a company which is a resident of one of the territories has a subsidiary company which is a resident of the other territory or which is engaged in trade or business in that other territory (whether through a permanent establishment or otherwise) shall not of itself constitute that subsidiary company a permanent establishment of its parent company.

(2) The term “industrial or commercial profits”, as used in the present Agreement, does not include income in the form of dividends, interest, rents or royalties, management charges, or remuneration for labour or personal services.

(3) In the application of the provisions of the present Agreement by one of the Contracting Governments any term not otherwise defined shall, unless the context otherwise requires, have the meaning which it has under the laws of that Contracting Government relating to the taxes which are the subject of the present Agreement.

ARTICLE III

(1) The industrial or commercial profits of a United Kingdom enterprise shall not be subject to a Canadian tax unless the enterprise is engaged in trade or business in Canada through a permanent establishment situated therein. If it so engaged, tax may be imposed on those profits by Canada, but only on so much of them as is attributable to that permanent establishment.

(2) The industrial or commercial profits of a Canadian enterprise shall not be subject to United Kingdom tax unless the enterprise is engaged in trade or business in the United Kingdom through a permanent establishment situated therein. If it is so engaged, tax may be imposed on those profits by the United Kingdom, but only on so much of them as is attributable to that permanent establishment; Provided that nothing in this paragraph shall affect any provisions of the law of the United Kingdom regarding the imposition of excess profits tax and national defence contribution in the case of inter-connected companies.

(3) Where an enterprise of one of the territories is engaged in trade or business in the other territory through a permanent establishment situated therein, there shall be attributed to such permanent establishment the industrial or commercial profits which it might be expected to derive if it were an independent enterprise engaged in the same or similar activities under the same or similar conditions and dealing at arm's length with the enterprise of which it is a permanent establishment.

(4) No portion of any profits arising from the sale of goods or merchandise by an enterprise of one of the territories shall be deemed to arise in the other territory by reason of the mere purchase of the goods or merchandise within that other territory.

(5) Where a company which is a resident of one of the territories derives profits or income from sources within the other territory, the Government of that other territory shall not impose any form of taxation on dividends paid by the company to persons not resident in that other territory, or any tax in the nature of an undistributed profits tax on undistributed profits of the company, by reason of the fact that those dividends or undistributed profits represent, in whole or in part, profits or income so derived.

ARTICLE IV

Where—
1. (a) an enterprise of one of the territories directly or indirectly in the management, control or capital of an enterprise of the other territory, or
1. (b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of one of the territories and an enterprise of the other territory, and
1. (c) in either case conditions are made or imposed between the 2 enterprises, in their commercial or financial relations, which differ from those which would be made between independent enterprises,

then any profits which would but for those conditions have accrued to one of the enterprises but by reason of those conditions have not so accrued may be included in the profits of that enterprise and taxed accordingly.

ARTICLE V

Notwithstanding the provisions of Articles III and IV, profits which a resident of one of the territories derives from operating ships or aircraft shall be exempt from tax in the other territory.

ARTICLE VI

(1) The rate of Canadian tax on income (other than earned income) derived from sources within Canada by a resident of the United Kingdom who is subject to United Kingdom tax in respect thereof and not engaged in trade or business in Canada through a permanent establishment situated therein, shall not exceed 15%.

(2) Notwithstanding the provisions of the foregoing paragraph, dividends paid to a company which is a resident of the United Kingdom by a Canadian company, all of whose shares (less directors' qualifying shares) which have under all circumstances full voting rights are beneficially owned by the former company, shall be exempt from Canadian Tax.

Provided that exemption shall not be allowed if ordinarily more than one-quarter of the gross income of the Canadian company is derived from interest and dividends other than interest and dividends from any wholly-owned subsidiary company.

(3) Income (other than earned income) derived from sources within the United Kingdom by an individual who is a resident of Canada, subject to Canadian tax in respect of the income, and not engaged in trade or business in the United Kingdom through a permanent establishment situated therein, shall be exempt from United Kingdom surtax.

ARTICLE VII

Copyright royalties and other like payments made in respect of the production or reproduction of any literary, dramatic, musical or artistic work (but not including rents or royalties in respect of motion picture films) and derived from sources within one of the territories by a resident of the other territory who is liable to tax in that other territory in respect thereof and not engaged in trade or business in the first-mentioned territory through a permanent establishment situated therein, shall be exempt from tax in that first-mentioned territory.

ARTICLE VIII

(1) Remuneration (other than pensions) paid by one of the Contracting Governments to any individual for services rendered to that Contracting Government in the discharge of governmental functions shall be exempt from tax in the territory of the other Contracting Government if the individual is not ordinarily resident in that territory or is ordinarily resident in that territory solely for the purpose of rendering those services.

(2) Any pension paid by one of the Contracting Governments to any individual for services rendered to that Contracting Government in the discharge of governmental functions shall be exempt from tax in the territory of the Contracting Government, if immediately prior to the cessation of those services the remuneration therefor was exempt from tax in that territory, whether under paragraph (1) of this Article or otherwise, or would have been exempt under that paragraph if the present Agreement had been in force at the time when the remuneration was paid.

(3) The provisions of this Article shall not apply to payments in respect of services rendered in connection with any trade or business carried on by either of the Contracting Governments for purposes of profit.

ARTICLE IX

(1) An individual who is a resident of the United Kingdom shall be exempt from Canadian tax on profits or remuneration in respect of personal (including professional) services performed within Canada in any taxation year if—
1. (a) he is present within Canada for a period or periods not exceeding in the aggregate 183 days during that year, and
1. (b) the services are performed for or on behalf of a person resident in the United Kingdom, and
1. (c) the profits or remuneration are subject to United Kingdom tax.

(2) An individual who is a resident of Canada shall be exempt from United Kingdom tax on profits or remuneration in respect of personal (including professional) services performed within the United Kingdom in any year of assessment if—
1. (a) he is present within the United Kingdom for a period or periods not exceeding in the aggregate 183 days during that year, and
1. (b) the services are performed for or on behalf of a person resident in Canada, and
1. (c) the profits or remuneration are subject to Canadian tax.

(3) The provisions of this Article shall not apply to the profits or remuneration of public entertainers such as stage, motion picture or radio artists, musicians and athletes.

ARTICLE X

(1) Any pension (other than a pension paid by the Government of Canada for services rendered to it in the discharge of governmental functions) and any annuity, derived from sources within Canada by an individual who is a resident of the United Kingdom and subject to United Kingdom tax in respect thereof, shall be exempt from Canadian tax.

(2) Any pension (other than a pension paid by the Government of the United Kingdom for services rendered to it in the discharge of governmental functions) and any annuity, derived from sources within the United Kingdom by an individual who is a resident of Canada and subject to Canadian tax in respect thereof, shall be exempt from United Kingdom tax.

(3) The term “annuity” means a stated sum payable periodically at stated times, during life or during a specified or ascertainable period of time, under an obligation to make the payments in consideration of money paid.

ARTICLE XI.

A professor or teacher from one of the territories who receives remuneration for teaching, during a period of temporary residence not exceeding 2 years, at a university, college, school or other educational institution in the other territory, shall be exempt from tax in that other territory in respect of that remuneration.

ARTICLE XII

A student or business apprentice from one of the territories who is receiving full-time education or training in the other territory shall be exempt from tax in that other territory on payments made to him by persons in the first-mentioned territory for the purposes of his maintenance, education or training.

ARTICLE XIII

(1) Subject to the provisions of the law of the United Kingdom regarding the allowance as a credit against United Kingdom tax of tax payable in a territory outside the United Kingdom, Canadian tax payable in respect of income from sources within Canada shall be allowed as a credit against any United Kingdom tax payable in respect of that income. Where such income is an ordinary dividend paid by a Canadian debtor, the credit shall take into account (in addition to any Canadian income tax chargeable directly or by deduction in respect of the dividend) the Canadian income tax payable in respect of its profits by the company paying the dividend, and where it is a dividend paid on participating preference shares and representing both a dividend at a fixed rate to which the shares are entitled and an additional participation in profits, the Canadian income tax so payable by the company shall likewise be taken into account in so far as the dividend exceeds that fixed rate.

(2) For the purposes of the foregoing paragraph and of the aforesaid provisions of the law of the United Kingdom, so much of the tax chargeable under the law of Canada relating to excess profits tax as is chargeable otherwise than by reference to excess profits shall be treated as income tax and not as excess profits tax.

(3) Subject to the provisions of the law of Canada regarding the deduction from tax payable in Canada of tax paid in a territory outside Canada, United Kingdom tax payable in respect of income from sources within the United Kingdom shall be deducted from any Canadian tax payable in respect of that income. Where such income is an ordinary dividend paid by a company resident in the United Kingdom, the deduction shall take into account (in addition to any United Kingdom income tax appropriate to the dividend) the United Kingdom national defence contribution payable by the company in respect of its profits, and where it is a dividend paid on participating preference shares and representing both a dividend at the fixed rate to which the shares are entitled and an additional participation in profits, the national defence contributions so payable by the company shall likewise be taken into account in so far as the dividend exceeds that fixed rate.

(4) For the purposes of this Article, profits or remuneration for personal (including professional) services performed in one of the territories shall be deemed to be income from sources within that territory, and the services of an individual whose services are wholly or mainly performed in ships or aircraft operated by a resident of one of the territories shall be deemed to be performed in that territory.

ARTICLE XIV

(1) The taxation authorities of the Contracting Governments shall exchange such information (being information available under the respective taxation laws of the Contracting Governments) as is necessary for carrying out the provisions of the present Agreement or for the prevention of fraud or the administration of statutory provisions against legal avoidance in relation to the taxes which are the subject of the present Agreement. Any information so exchanged shall be treated as secret and shall not be disclosed to any persons other than those concerned with the assessment and collection of the taxes which are the subject of the present Agreement. No information shall be exchanged which would disclose any trade secret or trade process.

(2) The taxation authorities of the Contracting Governments may consult together as may be necessary for the purpose of carrying out the provisions of the present Agreement and, in particular, the provisions of Articles III and IV.

(3) As used in this Article, the term “taxation authorities” means, in the case of Canada, the Minister of National Revenue or his authorised representative; in the case of the United Kingdom, the Commissioners of Inland Revenue or their authorised representative; and, in the case of any territory to which the present Agreement is extended under Article XV, the competent authority for the administration in such territory of the taxes to which the present Agreement applies.

ARTICLE XV

(1) Either of the Contracting Governments may, on the coming into force of the present Agreement or at any time thereafter while it continues in force, by a written notification of extension given to the other Contracting Government, declare its desire that the operation of the present Agreement shall extend, subject to such modification as may be necessary, to all or any of its colonies, overseas territories, protectorates, or territories in respect of which it exercises a mandate or trusteeship, which impose taxes substantially similar in character to those which are the subject of the present Agreement. The present Agreement shall, subject to such modifications (if any) as may be specified in the notification, apply to the territory or territories named in such notification on the date or dates specified in the notification (not being less than 60 days from the date of the notification) or, if no date is specified in respect of any such territory, on the sixtieth day after the date of the notification, unless prior to the date on which the Agreement would otherwise become applicable to a particular territory, the Contracting Government to whom notification is given shall have informed the other Contracting Government in writing that it does not accept the notification as to that territory. In the absence of such extension, the present Agreement shall not apply to any such territory.

(2) At any time after the expiration of one year from the entry into force of an extension under paragraph (1) of this Article, either of the Contracting Governments may, by written notice of termination given to the other Contracting Government, terminate the application of the present Agreement to any territory to which it has been extended under paragraph (1), and in that event the present Agreement shall cease to apply, 6 months after the date of the notice, to the territory or territories named therein, but without affecting its continued application to Canada, the United Kingdom or to any other territory to which it has been extended under paragraph (1) hereof.

(3) In the application of the present Agreement in relation to any territory to which it is extended by notification by the United Kingdom or Canada, references to the “United Kingdom” or, as the case may be, “Canada” shall be construed as references to that territory.

(4) The termination in respect of Canada or the United Kingdom of the present Agreement under Article XVIII shall, unless otherwise expressly agreed by both Contracting Governments, terminate the application of the present Agreement to any territory to which the Agreement has been extended by Canada or the United Kingdom.

(5) The provisions of the preceding paragraphs of this Article shall apply to the Channel Islands and the Isle of Man as if they were colonies of the United Kingdom.

ARTICLE XVI

The present Agreement shall come into force on the date on which the last of all such things shall have been done in the United Kingdom and Canada as are necessary to give the Agreement the force of law in the United Kingdom and Canada respectively, and shall thereupon have effect—
1. (a) in Canada as respects income taxes, including surtaxes, for the taxation year 1946 and subsequent years, and as respects excess profits tax for any fiscal period beginning on or after the first day of January, 1946, and for the unexpired portion of any fiscal period current at that date;
1. (b) in the United Kingdom, as respects income tax for the year of assessment beginning on the 6th day of April, 1946, and subsequent years; as respects surtax for the year of assessment beginning on the 6th day of April, 1945, and subsequent years; and as respects excess profits tax and national defence contribution for any chargeable accounting period beginning on or after the first day of January, 1946, and for unexpired portion of any chargeable accounting period current at that date.

ARTICLE XVII

The present Agreement shall be deemed to have superseded the Agreements made on the 8th day of May, 1930, and the 3rd day of October, 1935, between the Government of the United Kingdom and the Government of Canada for reciprocal exemption from income tax in certain cases of profits accruing from the business of shipping and profits or gains accruing through an agency respectively, and those Agreements shall cease to have effect—
1. (a) in Canada, for the taxation year 1946 and subsequent years;
1. (b) in the United Kingdom, as respects income tax for the year of assessment beginning on the 6th day of April, 1946, and subsequent years, and as respects surtax for the year of assessment beginning on the 6th day of April, 1945, and subsequent years.

ARTICLE XVIII

(1) The present Agreement shall continue in effect indefinitely but either of the Contracting Governments may, on or before the 30th day of June in any calendar year after the year 1947, give notice of termination to the other Contracting Government and, in such event, the present Agreement shall cease to be effective—
1. (a) in Canada, as respects income taxes, including surtaxes, for any taxation year ending in or after the calendar year next following that in which such notice is given, and as respects excess profits tax for any fiscal period beginning on or after the first day of January in the calendar year next following that in which such notice is given and for the unexpired portion of any fiscal period current at that date;
1. (b) in the United Kingdom, as respects income tax for any year of assessment beginning on or after the 6th day of April in the calendar year next following that in which such notice is given; as respects surtax for any year of assessment beginning on or after the 6th day of April in the calendar year in which such notice is given, and as respects excess profits tax or national defence contribution for any chargeable accounting period beginning on or after the first day of January in the calendar year next following that in which such notice is given and for the unexpired portion of any chargeable accounting period current at that date.

(2) The termination of the present Agreement shall not have the effect of reviving any agreement or arrangement abrogated by the present Agreement or by agreements previously concluded between the Contracting Governments.

In Witness thereof the undersigned, duly authorised thereto, have signed the present Agreement and have affixed thereto their seals.

Done at London, in duplicate, on the fifth day of June, one thousand nine hundred and forty-six.
For the Government of the United Kingdom:
[L.S.]
Hugh Dalton.
For the Government of Canada:
[L.S.]
W. L. Mackenzie King.

Income Tax (Double Taxation Relief) (Sweden) Order – Section 60

(Statutory Instrument 50/1954)

Statutory Instrument 50/1954 .. in force 31 December 1954

ARRANGEMENT OF REGULATIONS

1.	Citation
2.	Declaration
Schedule 1
Schedule 2

INCOME TAX (DOUBLE TAXATION RELIEF) (SWEDEN) ORDER – SECTION 60

Commencement [31 December 1954]

Whereas it is provided by section 52(1) of the Income Tax Act 1947Editor's note: This Act was repealed by the Income Tax Act, 1965 which itself was repealed and replaced by the Income Tax Act. This Order was continued in force by the 1965 Act and section 153 of the Income Tax Act., that if the Governor General by order declares that arrangements specified in the order were made with the Government of any territory outside Saint Lucia with a view to affording relief from double taxation in relation to income tax and any tax of a similar character imposed by the laws of that territory and that it is expedient that those arrangements have effect, the arrangements have effect in relation to income tax despite anything in any enactment;

And Whereas by a Convention dated 30 March 1949 between His Majesty in respect of the United Kingdom and His Majesty the King of Sweden, arrangements were made among other things for the avoidance of double taxation;

And Whereas provision is made in the said Convention for the extension by means of an exchange of notes between the High Contracting Parties of the said Convention, subject to such modifications and conditions (including conditions as to termination) as may be specified in the exchange of notes, to any territory, for whose foreign relations the United Kingdom is responsible, which imposes taxes substantially similar in character to those which are the subject of the said Convention;

And Whereas by a notification dated 18 December 1953 the said Convention with certain modifications was applied to Saint Lucia.

1. Citation

This Order may be cited as the Income Tax (Double Taxation Relief) (Sweden) Order.

2. Declaration

It is hereby declared—

(a) that the arrangements specified in Schedule 1 to this Order, as modified by the provisions of Schedule 2 to this Order have been made with the Government of Sweden;

(b) that it is expedient that those arrangements have effect.

Schedule 1

(Section 2)

Convention Between His Majesty in Respect of the United Kingdom of Great Britain and Northern Ireland and His Majesty the King of Sweden for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income.

London, 30th March, 1949

His Majesty The King of Great Britain, Ireland and the British Dominions beyond the Seas and His Majesty the King of Sweden,

Desiring to conclude a Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income,

Have appointed for that purpose as their Plenipotentiaries:

His Majesty the King of Great Britain, Ireland and the British Dominions beyond the Seas:

For the United Kingdom of Great Britain and Northern Ireland:

Sir William Strang, K.C.B., K.C.M.G., M.B.E., Permanent Under-Secretary of State for Foreign Affairs:

His Majesty the King of Sweden:

His Excellency Monsieur Bo Gunnar Richardson, Hagglof, His Majesty's Ambassador Extraordinary and Plenipotentiary in London:

Who, having exhibited their respective full powers, found in good and due form, have agreed as follows:—

ARTICLE I

1. The taxes which are the subject of the present Convention are—
1. (a) In Sweden:
1. The State income tax (including coupon tax) and the tax on the undistributed profits of companies (Ersattningsskatt), and, for the purposes of Articles XXII, paragraph (3), and XXIII to XXV inclusive, the State capital tax (hereinafter referred to as “Swedish tax”).
1. (b) In the United Kingdom of Great Britain and Northern Ireland:
1. The income tax (including surtax) and the profits tax (hereinafter referred to as “United Kingdom tax”).

2. The present Convention shall also apply to any other taxes of a substantially similar character imposed in the United Kingdom or Sweden subsequently to the date of signature of the present Convention.

ARTICLE II

1. In the present Convention, unless the context otherwise requires—
1. (a) the term “United Kingdom” means Great Britain and Northern Ireland, excluding the Channel Islands and the Isle of Man;
1. (b) the terms “one of the territories” and “the other territory” mean the United Kingdom or Sweden, as the context requires;
1. (c) the term “tax” means United Kingdom tax or Swedish tax, as the context requires;
1. (d) the term “person” includes any body of persons, corporate or not corporate;
1. (e) the term “company” means any body corporate;
1. (f) the terms “resident of the United Kingdom” and “resident of Sweden” mean respectively any person who is resident in the United Kingdom for the purposes of United Kingdom tax and not resident in Sweden for the purposes of Swedish tax and any person who is resident in Sweden for the purposes of Swedish tax and not resident in the United Kingdom for the purposes of United Kingdom tax; a company shall be regarded as resident in the United Kingdom if its business is managed and controlled in the United Kingdom and as resident in Sweden if it is incorporated under the laws of Sweden and its business is not managed and controlled in the United Kingdom, or if it is not so incorporated but its business is managed and controlled in Sweden;
1. (g) the terms “resident of one of the territories” and “resident of the other territory” mean a person who is a resident of the United Kingdom or a person who is a resident of Sweden, as the context requires;
1. (h) the terms “United Kingdom enterprise” and “Swedish enterprise” mean respectively an industrial or commercial enterprise or undertaking carried on by a resident of the United Kingdom and an industrial or commercial enterprise or undertaking carried on by a resident of Sweden, and the terms “enterprise of one of the territories” and “enterprise of the other territory” mean a United Kingdom enterprise or a Swedish enterprise, as the context requires;
1. (i) the term “industrial or commercial profits” includes rents or royalties in respect of cinematograph films;
1. (j) the term “permanent establishment,” when used with respect to an enterprise of one of the territories, means a branch, management, factory, or other fixed place of business, a mine, quarry or any other place of natural resources subject to exploitation. It also includes a place where building construction is carried on by contract for a period of at least one year, but does not include an agency unless the agent has, and habitually exercises, a general authority to negotiate and conclude contracts on behalf of the enterprise or has a stock of merchandise from which he regularly fills orders on its behalf. In this connection
  1. (i) an enterprise of one of the territories shall not be deemed to have a permanent establishment in the other territory merely because it carries on business dealings in that other territory through a bona fide broker or general commission agent acting in the ordinary course of his business as such,
  1. (ii) the fact that an enterprise of one of the territories maintains in the other territory a fixed place of business exclusively for the purchase of goods or merchandise shall not of itself constitute that fixed place of business a permanent establishment of the enterprise,
  1. (iii) the fact that a company which is a resident of one of the territories has a subsidiary company which is a resident of the other territory or which carries on a trade or business in that other territory (whether through a permanent establishment or otherwise) shall not of itself constitute that subsidiary company a permanent establishment of its parent company.

2. Where under this Convention any income is exempt from tax in one of the territories if (with or without other conditions) it is subject to tax in the other territory, and that income is subject to tax in that other territory by reference to the amount thereof which is remitted to or received in that other territory, the exemption to be allowed under this Convention in the first-mentioned territory shall apply only to the amount so remitted or received.

3. In the application of the provisions of the present Convention of the High Contracting Parties any term not otherwise defined shall, unless the context otherwise requires, have the meaning which it has under the laws in force in the territory of that Party relating to the taxes which are the subject of the present Convention.

ARTICLE III

1. The industrial or commercial profits of a United Kingdom enterprise shall not be subject to Swedish tax unless the enterprise carries on a trade or business in Sweden through a permanent establishment situated therein. If it carries on a trade or business as aforesaid, tax may be imposed on those profits by Sweden, but only on so much of them as is attributable to that permanent establishment.

2. The industrial or commercial profits of a Swedish enterprise shall not be subject to United Kingdom tax unless the enterprise carries on a trade or business in the United Kingdom through a permanent establishment situated therein. If it carries on a trade or business as aforesaid, tax may be imposed on those profits by the United Kingdom, but only on so much of them as is attributable to that permanent establishment.

3. Where an enterprise of one of the territories carries on a trade or business in the other territory through a permanent establishment situated therein, there shall be attributed to that permanent establishment the industrial or commercial profits which it might be expected to derive in that other territory if it were an independent enterprise engaged in the same or similar activities under the same or similar conditions and dealing at arm's length with the enterprise of which it is a permanent establishment.

4. Where an enterprise of one of the territories derives profits, under contracts concluded in that territory, from sales of goods or merchandise stocked in a warehouse in the other territory for convenience of delivery and not for purposes of display, those profits shall not be attributed to a permanent establishment of the enterprise in that other territory.

5. No portion of any profits arising to an enterprise of one of the territories shall be attributed to a permanent establishment situated in the other territory by reason of the mere purchase of goods or merchandise within that other territory by the enterprise.

ARTICLE IV

Where—
1. (a) an enterprise of one of the territories participates directly or indirectly in the management, control or capital of an enterprise of the other territory; or
1. (b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of one of the territories and an enterprise of the other territory;

and in either case, conditions are made or imposed between the 2 enterprises, in their commercial or financial relations, which differ from those which would be made between independent enterprises, then any profits which would but for those conditions have accrued to one of the enterprises but by reason of those conditions have not so accrued may be included in the profits of that enterprise and taxed accordingly.

ARTICLE V

1. The industrial and commercial profits of a Swedish enterprise shall, so long as undistributed profits of United Kingdom enterprises are effectively charged to United Kingdom profits tax at a lower rate than distributed profits of such enterprises, be charged to United Kingdom profits tax only at that lower rate.

2 Where a company which is a resident of Sweden controls, directly or indirectly, not less than 50%. of the entire voting power of a company which is a resident of the United Kingdom, distributions by the latter company to the former company shall be left out of account in computing United Kingdom profits tax effectively chargeable on the latter company at the rate appropriate to distributed profits.

ARTICLE VI

Notwithstanding the provisions of Articles III, IV, and V, profits which a resident of one of the territories derives from operating ships or aircraft shall be exempt from tax in the other territory.

ARTICLE VII

1.
1. (a) Dividends paid by a company which is a resident of the United Kingdom to a resident of Sweden, who is subject to tax in Sweden in respect thereof and does not carry on a trade or business in the United Kingdom through a permanent establishment situated therein, shall be exempt from United Kingdom surtax.
1. (b) The Swedish coupon tax on dividends paid by a company which is a resident of Sweden to a resident of the United Kingdom, who is subject to tax in the United Kingdom in respect thereof and does not carry on a trade or business in Sweden through a permanent establishment situated therein, shall not exceed 5%.

Provided that where the resident of the United Kingdom is a company which controls, directly or indirectly, not less than 50%. of the entire voting power of the company paying the dividends, the dividends shall be exempt from coupon tax.

2. Where a company which is a resident of one of the territories derives profits or income from sources within the other territory, there shall not be imposed in that other territory any form of taxation on dividends paid by the company to persons not resident in that other territory, or any tax in the nature of undistributed profits tax on undistributed profits of the company, whether or not those dividends or undistributed profits represent, in whole or in part, profits or income so derived.

ARTICLE VIII

1. Any interest derived from sources within one of the territories by a resident of the other territory who is subject to tax in that other territory in respect thereof and does not carry on a trade or business in the first-mentioned territory through a permanent establishment situated therein, shall be exempt from tax in that first-mentioned territory.

2. In this Article, the term “interest” includes interest on bonds, securities, notes, debentures or any other form of indebtedness.

3. Where any interest exceeds a fair and reasonable consideration in respect of the indebtedness for which it is paid, the exemption provided by the present Article shall apply only to so much of the interest as represents such fair and reasonable consideration.

ARTICLE IX

1. Any royalty derived from sources within one of the territories by a resident of the other territory, who is subject to tax in that other territory in respect thereof and does not carry on a trade or business in the first-mentioned territory through a permanent establishment situated therein, shall be exempt from tax in that first-mentioned territory.

2. In this Article, the term “royalty” means any royalty or other amount paid as consideration for the use of, or for the privilege of using, any copyright, patent, design, secret process or formula, trade-mark, or other like property, but does not include any royalty or other amount paid in respect of the operation of a mine or quarry or of any other extraction of natural resources.

3. Where any royalty exceeds a fair and reasonable consideration in respect of the rights for which it is paid, the exemption provided by the present Article shall apply only to so much of the royalty as represents such fair and reasonable consideration.

4. Any capital sum derived from sources within one of the territories from the sale of patent rights by a resident of the other territory who does not carry on a trade or business in the first-mentioned territory through a permanent establishment situated therein, shall be exempt from tax in that first-mentioned territory.

ARTICLE X

1. Income of whatever nature derived from real property within the territory of the United Kingdom (other than income from mortgages or bonds secured by real property) by a resident of Sweden who is subject to tax in the United Kingdom in respect thereof shall be exempt from tax in Sweden.

2. Any royalty or other amount paid in respect of the operation of a mine or quarry or of any other extraction of natural resources within the territory of the United Kingdom to a resident of Sweden who is subject to tax in the United Kingdom in respect thereof, shall be exempt from tax in Sweden.

3. Swedish tax payable in respect of income of the kind referred to in the preceding paragraphs, derived from sources within Sweden by a resident of the United Kingdom who is liable to tax in the United Kingdom in respect thereof, shall in accordance with Article XIX be allowed as a credit against the United Kingdom tax payable in respect of that income.

ARTICLE XI

1. Where under the provisions of this Convention a resident of the United Kingdom is exempt or entitled to relief from Swedish tax, similar exemption or relief shall be applied to the undivided estates of deceased persons in so far as one or more of the beneficiaries is a resident of the United Kingdom.

2. Swedish tax on the undivided estate of a deceased person shall, in so far as the income accrues to a beneficiary who is resident in the United Kingdom, be allowed as a credit under Article XIX.

ARTICLE XII

A resident of one of the territories who does not carry on a trade or business in the other territory through a permanent establishment situated therein shall be exempt in that other territory from any tax on gains from the sale, transfer, or exchange of capital assets.

ARTICLE XIII

1. Remuneration or pensions paid by, or out of funds created by, one of the High Contracting Parties to any individual in respect of services rendered to that Party in the discharge of governmental functions shall be exempt from tax in the territory of the other High Contracting Party, unless the individual is a national of that other Party without being also a national of the first-mentioned Party.

2. The provisions of this Article shall not apply to payments in respect of services rendered in connection with any trade or business carried on by either of the High Contracting Parties for purposes of profit.

ARTICLE XIV

1. An individual who is a resident of the United Kingdom shall be exempt from Swedish tax on profits or remuneration in respect of personal (including professional) services performed within Sweden in any year of assessment if—
1. (a) he is present within Sweden for a period or periods not exceeding in the aggregate 183 days during that year; and
1. (b) the services are performed for or on behalf of a resident of the United Kingdom, and
1. (c) the profits of remuneration are subject to United Kingdom tax.

2. An individual who is a resident of Sweden shall be exempt from United Kingdom tax on profits or remuneration in respect of personal (including professional) services performed within the United Kingdom in any year of assessment, if—
1. (a) he is present within the United Kingdom for a period or periods not exceeding in the aggregate 183 days during that year, and
1. (b) the services are performed for or on behalf of a resident of Sweden, and
1. (c) the profits or remuneration are subject to Swedish tax.

3. The provisions of this Article shall not apply to the profits or remuneration of public entertainers such as theatre, motion picture or radio artists, musicians and athletes.

ARTICLE XV

1. Any pension (other than a pension of the kind referred to in paragraph 1 of Article XIII) and any annuity, derived from sources within Sweden by an individual who is a resident of the United Kingdom and subject to United Kingdom tax in respect thereof, shall be exempt from Swedish tax.

2. Any pension (other than a pension of the kind referred to in paragraph 1 of Article XIII) and any annuity, derived from sources within the United Kingdom by an individual who is a resident of Sweden and subject to Swedish tax in respect thereof, shall be exempt from the United Kingdom tax.

3. The term “annuity” means a stated sum payable periodically at stated times, during life or during a specified or ascertainable period of time, under an obligation to make the payments in return for adequate and full consideration in money or money's worth.

ARTICLE XVI

A professor or teacher from one of the territories, who receives remuneration for teaching, during a period of temporary residence not exceeding 2 years, at a university, college or other establishment for further education in the other territory, shall be exempt from tax in that other territory in respect of that remuneration.

ARTICLE XVII

A student or business apprentice from one of the territories who is receiving full-time education or training in the other territory, shall be exempt from tax in that other territory on payments made to him by persons in the first-mentioned territory for the purposes of his maintenance, education or training.

ARTICLE XVIII

1. Individuals who are residents of Sweden shall be entitled to the same personal allowances, reliefs and reductions for the purposes of United Kingdom tax as British subjects not resident in the United Kingdom.

Individuals who are residents of the United Kingdom shall be entitled to the same personal allowances, reliefs and reductions for the purposes of Swedish tax as those to which Swedish nationals not resident in Sweden may be entitled.

ARTICLE XIX

1. Subject to the provisions of the law of the United Kingdom regarding the allowance as a credit against United Kingdom tax of tax payable in a territory outside the United Kingdom, Swedish tax payable under the laws of Sweden and in accordance with this Convention, whether directly or by deduction, in respect of income from sources within Sweden shall be allowed as a credit against any United Kingdom tax payable in respect of that income. Where such income is an ordinary dividend paid by a company which is a resident of Sweden the credit shall take into account (in addition to any Swedish tax appropriate to the dividend) the Swedish tax payable by the company in respect of its profits; and, where it is a dividend paid on participating preference shares and representing both a dividend at the fixed rate to which the shares are entitled and an additional participation in profits, the Swedish tax so payable by the Company shall likewise be taken into account in so far as the dividend exceeds that fixed rate.

2. Income from sources within the United Kingdom which under the laws of the United Kingdom and in accordance with this Convention is subject to tax in the United Kingdom either directly or by deduction shall be exempt from Swedish tax:

Provided that where such income is a dividend paid by a company being a resident of the United Kingdom to a person resident in Sweden, not being a company, whether or not he is also resident in the United Kingdom, Swedish tax may be charged on the amount of the dividend after deduction of United Kingdom income tax, but the amount of Swedish tax chargeable shall be reduced by a sum equal to 20%. of the amount of the dividend so charged.

3. Where income is derived from sources outside both the United Kingdom and Sweden by a person who is resident in the United Kingdom for the purposes of United Kingdom tax and also resident in Sweden for the purposes of Swedish tax, the income may be taxed in both countries (subject to any Convention which may exist between either of the High Contracting Parties and the territory or territories from which the income is derived), but the Swedish tax on that income shall be limited to tax on the proportion of such income represented by the proportion which such person's income from sources in Sweden bears to the sum of his income from sources in Sweden and of his income from sources in the United Kingdom, and the United Kingdom tax on that income shall be reduced by a credit, in accordance with paragraph 1 of this Article, for the Swedish tax on the proportion of that income so computed.

4. The special tax payable in Sweden by public entertainers such as theatre and radio artists, musicians and athletes (bevillningsavgift för vissa offentliga f”restallningar) shall be regarded, for the purposes of this Article, as Swedish tax.

5. For the purposes of this Article, profits or remuneration for personal (including professional) services performed in one of the territories shall be deemed to be income from sources within that territory, and the services of an individual whose services are wholly or mainly performed in ships or aircraft operated by a resident of one of the territories shall be deemed to be performed in that territory.

6. That graduated rate of Swedish tax to be imposed on residents of Sweden may be calculated as though income exempted under this Convention were included in the amount of the total income.

ARTICLE XX

1. The taxation authorities of the High Contracting Parties shall exchange such information (being information which is at their disposal under their respective taxation laws in the normal course of administration) as is necessary for carrying out the provisions of the present Convention or for the prevention of fraud or for the administration of statutory provisions against legal avoidance in relation to the taxes which are the subject of the present Convention. Any information so exchanged shall be treated as secret and shall not be disclosed to any person other than those concerned with the assessment and collection of the taxes which are the subject of the present Convention. No information as aforesaid shall be exchanged which would disclose any trade, business, industrial or professional secret or trade process.

2. As used in these Articles, the term “taxation authorities” means, in the case of the United Kingdom, the Commissioners of Inland Revenue; in the case of Sweden, the Finance Ministry; and, in the case of any territory to which the present Convention is extended under Article XXIII, the competent authority for the administration in such territory of the taxes to which the present Convention applies.

ARTICLE XXI

The following agreements between the United Kingdom and Sweden shall not have effect for any period for which the present Convention has effect, that is to say—
1. (a) the agreement dated 19th December, 1924 (1) for the reciprocal exemption from income tax in certain cases of profits accruing from the business of shipping;
1. (b) the agreement dated 6th July, 1931, (2) for the reciprocal exemption from taxes in certain cases of profits arising through agencies.

ARTICLE XXII

1. The nationals of one of the High Contracting Parties shall not be subjected in the territory of the other High Contracting Party to any taxation or any requirements connected therewith which is other, higher, or more burdensome than the taxation and connected requirements for which the nationals of the latter Party are or may be subjected.

2. The enterprises of one of the territories shall not be subject in the other territory, in respect of profits attributable to their permanent establishments in that other territory, to any taxation which is other, higher or more burdensome than the taxation to which the enterprises of that other territory are or may be suspected in respect of the like profits.

3. An individual or company being a resident of one of the territories shall not be subject to any tax on capital in the other territory which is other, higher or more burdensome than the tax on capital to which an individual or, as the case may be, a company, being a resident of that other territory is or may be subjected.

4. Nothing in paragraph 1 or paragraph 2 of this Article shall be construed as obliging one of the High Contracting Parties to grant to nationals of the other High Contracting Party who are not resident in the territory of the former Party the same personal allowances, reliefs and reductions for tax purposes as are granted to his own nationals.

5. In this Article the term “nationals” means—
1. (a) in relation to Sweden, all Swedish subjects and all legal persons, partnerships and associations deriving their status as such from the law in force in Sweden;
1. (b) in relation to the United Kingdom, all British subjects and British-protected persons residing in the United Kingdom or any British territory to which the present Convention applies by reason of extension made under Article XXIII and all legal persons, partnerships and associations deriving their status as such from the law in force in any British territory to which the present Convention applies.

6. In this Article the term “taxation” means taxes of every kind and description levied on behalf of any authority whatsoever.

ARTICLE XXIII

1. The present Convention may be extended, either in its entirety or with modifications, to any territory for whose foreign relations the United Kingdom is responsible and which imposes taxes substantially similar in character to those which are the subject of the present Convention, and any such extension shall take effect from such date and subject to such modifications and conditions (including conditions as to termination) as may be specified and agreed between the High Contracting Parties in notes to be exchanged for this purpose.

2. The termination in respect of Sweden or the United Kingdom of the present Convention under Article XXV shall, unless otherwise expressly agreed by both High Contracting Parties, terminate the application of the present Convention to any territory to which the Convention has been extended under this Article.

ARTICLE XXIV

1. The present Convention shall be ratified by the High Contracting Parties. Ratification by His Majesty the King of Sweden shall be subject to the consent of the Riksdag.

2. The instruments of ratification shall be exchanged at Stockholm as soon as possible.

3. Upon exchange of ratifications the present Convention shall have effect—
1. (a) In Sweden:
1. as respects tax on income which is assessed in or after the calendar year beginning on 1st January, 1950, being income for which preliminary tax is payable during the period 1st March, 1949, to 28th February, 1950; or any succeeding period;
1. as respects coupon tax payable on or after 1st January 1949;
1. as respects capital tax which is assessed in or after the calendar year beginning on 1st January, 1950.
1. (b) In the United Kingdom:
1. as respects income tax for any year of assessment beginning on or after 6th April, 1949;
1. as respects surtax for any year of assessment beginning on or after 6th April, 1948; and
1. as respects profits tax in respect of the following profits:—
  1. (i) profits arising in any chargeable accounting period beginning on or after 1st April, 1949;
  1. (ii) profits attributable to so much of any chargeable accounting period falling partly before and partly after that date as falls after that date;
  1. (iii) profits not so arising or attributable by reference to which income tax is, or but for the present Convention would be chargeable for any year of assessment beginning on or after 6th April, 1949.

ARTICLE XXV

The present Convention shall continue in effect indefinitely but either of the High Contracting Parties may, on or before 30th June in any calendar year not earlier than the year 1953, give to the other High Contracting Party, through diplomatic channels, written notice of termination and, in such event, the present Convention shall cease to be effective—
1. (a) In Sweden:
1. as respects tax on income for which preliminary tax is payable after the last day of February in the calendar year next following that in which the notice is given;
1. as respects coupon tax payable on or after 1st January in the calendar year next following that in which the notice is given.
1. as respects capital tax assessed in or after the second calendar year following that in which the notice is given.
1. (b) In the United Kingdom:
1. as respects income tax for any year of assessment beginning on or after 6th April in the calendar year next following that in which the notice is given;
1. as respects surtax for any year of assessment beginning on or after 6th April in the calendar year in which the notice is given; and
1. as respects profits tax in respect of the following profits:—
  1. (i) profits arising in any chargeable accounting period beginning on or after 1st April in the calendar year next following that in which the notice is given;
  1. (ii) profits attributable to so much of any chargeable accounting period falling partly before and partly after that date as falls after that date;
  1. (iii) profits not so arising or attributable by reference to which income tax is chargeable for any year of assessment beginning on or after 6th April in the next following calendar year.

In witness whereof the above-mentioned plenipotentiaries have signed the present Convention and have affixed thereto their seals.

Done at London, in duplicate, in the English and Swedish languages, both texts being equally authentic, on the thirtieth day of March, one thousand nine hundred and forty-nine.

(L.S.) WILLIAM STRANG

(L.S.) GUNNAR HAGGLOF.

Schedule 2

(Section 2)

1. Application

(1) The provisions of the Convention incorporated in Schedule 1 to this Order shall apply as modified below—
1. (a) as if the contracting parties were Saint Lucia and the Government of Sweden; and as if the tax concerned in the case of Saint Lucia were income tax;
1. (b) as if references to the date of signature were references to 18 December 1953.

(2) The extension
1. (a) has effect in Saint Lucia as respects tax for the year of assessment beginning in the calendar year next following the date of this Order and for subsequent years of assessment; and
1. (b) has effect in Sweden—
1. as respects Swedish tax on income for which preliminary tax is payable after the last day of February in the calendar year next following the date of this Order;
1. as respects Swedish coupon tax payable on or after 1 January in the calendar year next following the date of this Order;
1. as respects Swedish capital tax assessed in or after the second calendar year next following that date.

(3) The extension continues in effect indefinitely but may be terminated as respects Saint Lucia by written notice of termination given on or before 30 June in any calendar year by either of the High Contracting Parties to the Convention to the other High Contracting Party through the diplomatic channel and in such event the extension—
1. (a) ceases to have effect in Saint Lucia as respects tax for the year of assessment beginning in the calendar year next following the date of such notice and for subsequent years of assessment; and
1. (b) ceases to have effect in Sweden as respects Swedish tax on income for which preliminary tax is payable after the last day of February in the calendar year next following that in which the notice is given, as respects Swedish coupon tax payable on or after 1 January in the calendar year next following that in which the notice is given, and as respects Swedish capital tax assessed in or after the second calendar year next following that in which the notice is given.

2. Modifications

(1) In article VII(1) of the Convention the words “exempt from United Kingdom Surtax” shall be understood for the purposes of this extension as though they read “is not liable to tax in the territory at a rate in excess of the rate applicable to a company”.

(2) Article VIII is considered to be deleted.

Income Tax (Double Taxation Relief) (Denmark) Order – Section 60

(Statutory Instrument appearing in volume 7, page 1106 of the 1957 Revision of the Laws of Saint Lucia)

Statutory Instrument appearing in volume 7, page 1106 of the 1957 Revision of the Laws of Saint Lucia

ARRANGEMENT OF REGULATIONS

1.	Citation
2.	Declaration
Schedule 1
Schedule 2

INCOME TAX (DOUBLE TAXATION RELIEF) (DENMARK) ORDER – SECTION 60

Whereas it is provided by section 52(1) of the Income Tax Act, 1947Editor's note: This Act was repealed by the Income Tax Act, 1965 which itself was repealed and replaced by the Income Tax Act. This Order was continued in force by the 1965 Act and section 153 of the Income Tax Act. that if the Governor General by order declares that arrangements specified in the order were made with the Government of any territory outside Saint Lucia with a view to affording relief from double taxation in relation to income tax and any tax of a similar character imposed by the laws of that territory and that it is expedient that those arrangements have effect, the arrangements have effect in relation to income tax despite anything in any enactment;

And Whereas by a Convention dated 27 March 1950, between the Government of the United Kingdom and the Government of Denmark arrangements were made among other things for the avoidance of double taxation;

And Whereas provision is made in the said Convention for the extension by means of an exchange of notes between the High Contracting Parties of the said Convention, subject to such modifications and conditions (including conditions as to termination) as may be specified in the exchange of notes, to any territory, for whose international relations the United Kingdom is responsible, which imposes taxes substantially similar in character to those which are the subject of the said Convention;

And Whereas by an Exchange of Notes dated respectively 18 November and 22 December 1954 the said Convention with certain modifications was applied to Saint Lucia.

1. Citation

This Order may be cited as the Income Tax (Double Taxation Relief) (Denmark) Order.

2. Declaration

It is hereby declared—

(a) that the arrangements specified in Schedule 1 to this Order, as modified by the provisions of Schedule 2 to this Order, have been made with the Government of Denmark;

(b) that it is expedient that those arrangements have effect.

Schedule 1

(Section 2)

Convention Between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the Kingdom of Denmark for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion With Respect to Taxes on Income.

The Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the Kingdom of Denmark,

Desiring to conclude a Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income,

Have appointed for that purpose as their Plenipotentiaries:

The Government of the United Kingdom of Great Britain and Northern Ireland:

The Right Honourable Ernest Bevin, M.P., Principal Secretary of State for Foreign Affairs;

The Government of the Kingdom of Denmark:

His Excellency Count Eduard Reventlow; Ambassador Extra-ordinary and Plenipotentiary of Denmark in London;

Who, having exhibited their respective full powers, found in good and due form, have agreed as follows—

ARTICLE I

1. The taxes which are the subject of the present Convention are:
1. (a) In Denmark: The national income tax (including the extraordinary company tax) (hereinafter referred to as “Danish tax”).
1. (b) In the United Kingdom of Great Britain and Northern Ireland: The income tax (including surtax) and the profits tax (hereinafter referred to as “United Kingdom tax”).

2. The present Convention shall also apply to any other taxes of a substantially similar character imposed in Denmark or the United Kingdom subsequently to the date of signature of the present Convention.

ARTICLE II

1. In the present Convention, unless 'the context otherwise requires:
1. (a) The term “United Kingdom” means Great Britain and Northern Ireland, excluding the Channel Islands and the Isle of Man;
1. (b) The term “Denmark” means the Kingdom of Denmark, excluding the Faroe Islands and Greenland;
1. (c) The terms “one of the territories” and “the other territory” mean the United Kingdom of Denmark, as the context requires;
1. (d) The term “tax” means United Kingdom tax or Danish tax, as the context requires;
1. (e) The term “person” includes any body of persons, corporate or not corporate;
1. (f) The term “company” means any body corporate;
1. (g) The terms “resident of the United Kingdom” and “resident of Denmark” mean respectively any person who is resident in the United Kingdom for the purposes of United Kingdom tax and not resident in Denmark for the purposes of Danish tax, and any person who is resident in Denmark for the purposes of Danish tax and not resident in the United Kingdom for the purpose of United Kingdom tax; a company shall be regarded as resident in the United Kingdom if its business is managed and controlled in the United Kingdom and as resident in Denmark if its business is managed and controlled in Denmark;
1. (h) The terms “resident of one of the territories” and “resident of the other territory” mean a person who is a resident of the United Kingdom or a person who is a resident of Denmark, as the context requires;
1. (i) The terms “United Kingdom enterprise” and “Danish enterprise” mean respectively an industrial or commercial enterprise or undertaking carried on by a resident of the United Kingdom and an industrial or commercial enterprise or undertaking carried on by a resident of Denmark, and the terms “enterprise of one of the territories” and “enterprise of the other territory” mean a United Kingdom enterprise or a Danish enterprise, as the context requires;
1. (j) The term “industrial or commercial profits” includes rents or royalties in respect of cinematograph films;
1. (k) The term “permanent establishment,” when used with respect to an enterprise of one of the territories, means a branch, management, factory, or other fixed place of business, but does not include an agency unless the agent has, and habitually exercises, a general authority to negotiate and conclude contracts on behalf of such enterprise or has a stock of merchandise from which he regularly fills orders on its behalf. In this connection—
  1. (i) An enterprise of one of the territories shall not be deemed to have a permanent establishment in the other territory merely because it carries on business dealings in that other territory through a bono fide broker or general commission agent acting in the ordinary course of his business as such;
  1. (ii) The fact that an enterprise of one of the territories maintains in the other territory a fixed place of business exclusively for the purchase of goods or merchandise shall not of itself constitute that fixed place of business a permanent establishment of the enterprise;
  1. (iii) The fact that a company which is a resident of one of the territories has a subsidiary company which is a resident of the other territory or which carries on a trade or business in that other territory (whether through a permanent establishment or otherwise) shall not of itself constitute that subsidiary company a permanent establishment of its parent company.

2. Where under this Convention any income is exempt from tax in one of the territories if (with or without other conditions) it is subject to tax in the other territory, and that income is subject to tax in that other territory by reference only to the amount thereof which is remitted to or received in that other territory, the exemption to be allowed under this Convention in the first-mentioned territory shall apply only to the amount so remitted or received.

3. In the application of the provisions of the present Convention by one of the High Contracting Parties any term not otherwise defined shall, unless the context otherwise requires, have the meaning which it has under the laws in force in the territory of that Party relating to the taxes which are the subject of the present Convention.

ARTICLE III

1. The industrial or commercial profits of a United Kingdom enterprise shall not be subject to Danish tax unless the enterprise carries on a trade or business in Denmark through a permanent establishment situated therein. If it carries on a trade or business as aforesaid, tax may be imposed on those profits by Denmark, but only on so much of them as is attributable to that permanent establishment.

2. The industrial or commercial profits of a Danish enterprise shall not be subject to United Kingdom tax unless the enterprise carries on a trade or business in the United Kingdom through a permanent establishment situated therein. If it carries on a trade or business as aforesaid, tax may be imposed on those profits by the United Kingdom, but only on so much of them as is attributable to that permanent establishment.

3. Where an enterprise of one of the territories carries on a trade or business in the other territory through a permanent establishment situated therein, there shall be attributed to that permanent establishment the industrial or commercial profits which it might be expected to derive in that other territory if it were an independent enterprise engaged in the same or similar activities under the same or similar conditions and dealing at arm's length with the enterprise of which it is a permanent establishment.

4. Where an enterprise of one of the territories derives profits, under contracts concluded in that territory, from sales of goods or merchandise stocked in a warehouse in the other territory for convenience of delivery and not for purposes of display, those profits shall not be attributed to a permanent establishment of the enterprise in that other territory, notwithstanding that the offers of purchase have been obtained by an agent in that other territory and transmitted by him to the enterprise for acceptance.

5. No portion of any profits arising to an enterprise of one of the territories shall be attributable to a permanent establishment situated in the other territory by reason of the mere purchase of goods or merchandise within that other territory by the enterprise.

ARTICLE IV

Where—
1. (a) an enterprise of one of the territories participates directly or indirectly in the management, control or capital of an enterprise of the other territory, or
1. (b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of one of the territories and an enterprise of the other territory,

ARTICLE V

1. The industrial and commercial profits of a company which is a resident of Denmark shall, so long as undistributed profits of United Kingdom enterprises are effectively charged to United Kingdom Profits Tax at a lower rate than distributed profits of such enterprises, be charged to United Kingdom Profits Tax only at that lower rate.

2. Where a company which is a resident of Denmark controls, directly or indirectly, not less than 50%, of the entire voting power of a company which is a resident of the United Kingdom, distributions by the latter company to the former company shall be left out of account in computing United Kingdom Profits Tax effectively chargeable on the latter company at the rate appropriate to distributed profits.

3. If the industrial and commercial profits of a company which is a resident of the United Kingdom become chargeable to a form of Danish tax under which, in the case of companies which are residents of Denmark, the undistributed or undistributable income is charged to tax at a lower rate than the distributed or distributable income of such companies, these industrial and commercial profits shall be charged to Danish tax only at the lower rate.

4. Where a company which is a resident of the United Kingdom beneficially owns not less than 50%, of the entire ordinary share capital of a company which is a resident of Denmark, distributed or distributable income payable by the latter company to the former company shall be left out of account in computing the liability of the latter company to Danish tax at any higher rate appropriate to distributed or distributable income, and this shall apply, in particular, in computing the liability of the latter company to that part of the Danish extraordinary tax on companies known as Udbytterate.

ARTICLE VI

1. Notwithstanding the provisions of Articles III, IV and V, profits which a resident of one of the territories derives from operating ships or aircraft shall be exempt from tax in the other territory.

2. The Agreement dated 18th December, 1924, between the United Kingdom and Denmark for the reciprocal exemption from Income Tax in certain cases of profits accruing from the business of shipping shall not have effect for any year or period for which the present Convention has effect.

ARTICLE VII

1.
1. (a) Dividends paid by a company which is a resident of the United Kingdom to a resident of Denmark, who is subject to tax in Denmark in respect thereof and does not carry on a trade or business in the United Kingdom through a permanent establishment situated therein, shall be exempt from United Kingdom surtax.
1. (b) Dividends paid by a company which is a resident of Denmark to a resident of the United Kingdom, who is subject to tax in the United Kingdom in respect thereof and does not carry on a trade or business in Denmark through a permanent establishment situated therein, shall not be chargeable to tax in addition to the tax on the profits out of which the dividends are paid at a rate exceeding 5%.: Provided that where the resident of the United Kingdom is a company which beneficially owns not less than 50%, of the entire ordinary share capital of the company paying the dividends, the dividends shall be exempt from any such tax on dividends.

2. Where a company which is a resident of one of the territories derives profits or income from sources within the other territory, there shall not be imposed in that other territory any form of taxation on dividends paid by the company to persons not resident in that other territory, or any tax in the nature of undistributed profits tax on undistributed profits of the company, whether or not those dividends or undistributed profits represent, in whole or in part, profits or income so derived.

ARTICLE VIII

1. Any interest or royalty derived from sources within one of the territories by a resident of the other territory, who is subject to tax in that other territory in respect thereof and does not carry on a trade or business in the first-mentioned territory through a permanent establishment situated therein, shall be exempt from tax in that first-mentioned territory; but no exemption shall be allowed in respect of interest paid by a company which is a resident of one of the territories to a company which is a resident of the other territory where the latter company controls, either directly or indirectly, more than 50%, of the entire voting power of the former company.

2. In this Article—
1. (a) The term “interest” includes interest on bonds, securities, notes, debentures or on any other form of indebtedness;
1. (b) The term “royalty” means any royalty or other amount paid as consideration for the use of, or for the privilege of using, any copyright, patent, design, secret process or formula, trade mark or other like property, but does not include any royalty or other amount paid in respect of the operation of a mine or quarry or of any other extraction of natural resources.

3. Where any interest or royalty exceeds a fair and reasonable consideration in respect of the indebtedness or rights for which it is paid, the exemption provided by the present Article shall apply only to so much of the interest or royalty as represents such fair and reasonable consideration.

4. Any capital sum derived from one of the territories from the sale of patent rights by a resident of the other territory who does not carry on a trade or business in the first-mentioned territory through a permanent establishment situated therein, shall be exempt from tax in that first-mentioned territory.

ARTICLE IX

Income of whatever nature derived from real property within one of the territories (except interest on mortgages secured on real property) shall be chargeable to tax in accordance with the laws of that territory. Where the said income is also chargeable to tax in the other territory, credit for the tax payable in the first-mentioned territory shall be given against the tax payable on that income in the other territory in accordance with Article XVII.

ARTICLE X

A resident of one of the territories who does not carry on a trade or business in the other territory through a permanent establishment situated therein shall be exempt in that other territory from any tax on gains from the sale, transfer, or exchange of capital assets.

ARTICLE XI

1. Remuneration, including pensions, paid by, or out of funds created by, one of the High Contracting Parties to any individual in respect of services rendered to that Party in discharge of governmental functions shall be exempt from tax in the territory of the other High Contracting Party, unless the individual is a national of that other Party without being also a national of the first-mentioned Party.

2. The provisions of this Article shall not apply to payments in respect of services rendered in connection with any trade or business carried on by either of the High Contracting Parties for purposes of profit.

ARTICLE XII

1. An individual who is a resident of the United Kingdom shall be exempt from Danish tax on profits or remuneration in respect of personal (including professional) services performed within Denmark in any year of assessment if—
1. (a) he is present within Denmark for a period or periods not exceeding in the aggregate 183 days during that year, and
1. (b) the services are performed for or on behalf of a resident of the United Kingdom, and
1. (c) the profits or remuneration are subject to United Kingdom tax.

2. An individual who is a resident of Denmark shall be exempt from United Kingdom tax on profits or remuneration in respect of personal (including professional) services performed within the United Kingdom in any year of assessment, if—
1. (a) he is present within the United Kingdom for a period or periods not exceeding in the aggregate 183 days during that year, and
1. (b) the services are performed for or on behalf of a resident of Denmark, and
1. (c) the profits or remuneration are subject to Danish tax.

3. The provisions of this Article shall not apply to the profits or remuneration of public entertainers such as theatre, motion picture or radio artists, musicians and athletes.

ARTICLE XIII

1. Any pension (other than a pension of the kind referred to in paragraph 1 of Article XI) and any annuity, derived from sources within Denmark by an individual who is a resident of the United Kingdom and subject to United Kingdom tax in respect thereof, shall be exempt from Danish tax.

2. Any pension (other than a pension of the kind referred to in paragraph 1 of Article XI) and any annuity, derived from sources within the United Kingdom by an individual who is a resident of Denmark and subject to Danish tax in respect thereof, shall be exempt from United Kingdom tax.

3. The term “annuity” means a stated sum payable periodically at stated times, during life or during a specified or ascertainable period of time, under an obligation to make the payments in return for adequate and full consideration in money or money's worth.

ARTICLE XIV

A professor or teacher from one of the territories, who receives remuneration for teaching, during a period of temporary residence not exceeding 2 years, at a university, college, school or other educational institution in the other territory, shall be exempt from tax in that other territory in respect of that remuneration.

ARTICLE XV

A student or business apprentice from one of the territories, who is receiving full-time education or training in the other territory, shall be exempt from tax in that other territory on payments made to him by persons in the first-mentioned territory for the purposes of his maintenance, education or training.

ARTICLE XVI

1. Individuals who are residents of Denmark shall be entitled to the same personal allowances, reliefs and reductions for the purposes of United Kingdom income tax as British subjects not resident in the United Kingdom.

2. Individuals who are residents of the United Kingdom shall be entitled to the same personal allowances and reliefs for the purposes of Danish tax as Danish nationals not resident in Denmark.

ARTICLE XVII

1. The laws of the High Contracting Parties shall continue to govern the taxation of income arising in either of the territories except where express provision to the contrary is made in this Convention. Where income is subject to tax in both territories, relief from double taxation shall be given in accordance with the following paragraphs.

2. Subject to the provisions of the law of the United Kingdom regarding the allowance as a credit against United Kingdom tax of tax payable in a territory outside the United Kingdom, Danish tax, payable whether directly or by deduction, in respect of income from sources within Denmark shall be allowed as a credit against the United Kingdom tax payable in respect of that income. Where such income is an ordinary dividend paid by a company resident in Denmark, the credit shall take into account (in addition to any Danish tax appropriate to the dividend) the Danish tax payable by the company in respect of its profits; and, where it is a dividend paid on participating preference shares and representing both a dividend at the fixed rate to which the shares are entitled and an additional participation in profits, the Danish tax so payable by the company shall likewise be taken into account in so far as the dividend exceeds that fixed rate.

3. United Kingdom tax payable, whether directly or by deduction, in respect of income from sources within the United Kingdom shall be allowed as a deduction from Danish tax payable in respect of that income. Provided that the amount of deduction shall not exceed the proportion of the Danish tax which such income chargeable to Danish tax bears to the total income chargeable to Danish tax. For the purposes of this paragraph only, the expression “Danish tax” shall include the Danish inter-municipal income tax.

4. In the case of a person who is resident in the United Kingdom for the purposes of United Kingdom tax and is also resident in Denmark for the purposes of Danish tax, the provisions of paragraph 2 of this Article shall apply in relation to income which that person derives from sources within Denmark, and the provisions of paragraph 3 of this Article shall apply in relating to income which he derives from sources within the United Kingdom. If such person derives income from sources outside both the United Kingdom and Denmark, tax may be imposed on that income in both the territories (subject to the laws in force in the territories and to any Convention which may exist between either of the High Contracting Parties and the territory from which the Income is derived). A credit shall be allowed in accordance with paragraph 2 of this Article against any United Kingdom tax payable in respect of that income, equal to that proportion of the United Kingdom tax or the Danish tax on that income, whichever is the less, which such person's income from sources within the United Kingdom bears to the sum of his income from sources within the United Kingdom and his income from sources within Denmark; and a deduction shall be allowed in accordance with paragraph 3 of this Article against any Danish tax payable in respect of that income equal to that proportion of the United Kingdom tax or the Danish tax on that income, whichever is the less, which such person's income from sources within Denmark bears to the sum of his income from sources within the United Kingdom and his income from sources within Denmark.

5. For the purposes of this Article, profits or remuneration for personal (including professional) services performed in one of the territories shall be deemed to be income from sources within that territory, and the services of an individual whose services are wholly or mainly performed in ships or aircraft operated by a resident of one of the territories shall be deemed to be performed in that territory.

ARTICLE XVIII

1. The taxation authorities of the High Contracting Parties shall exchange such information (being information which is at their disposal under their respective taxation laws in the normal course of administration) as is necessary for carrying out the provisions of the present Convention or for the prevention of fraud or for the administration of statutory provisions against legal avoidance in relation to the taxes which are the subject of the present Convention. Any information so exchanged shall be treated as secret and shall not be disclosed to any persons other than those concerned with the assessment and collection of taxes which are the subject of the present Convention. No information as aforesaid shall be exchanged which would disclose any trade, business, industrial or professional secret or trade process.

2. As used in this Article, the term “taxation authorities” means, in the case of the United Kingdom, the Commissioners of Inland Revenue or their authorised representatives; in the case of Denmark, the Director General of Taxation or his authorised representative; and, in the case of any territory to which the present Convention is extended under Article XX, the competent authority for the administration in such territory of the taxes to which the present Convention applies.

ARTICLE XIX

1. The nationals of one of the High Contracting Parties shall not be subjected in the territory of the other High Contracting Party to any taxation or any requirement connected therewith which is other, higher, or more burdensome than the taxation and connected requirements to which the nationals of the latter Party are or may be subjected.

2. The enterprises of one of the territories, whether carried on by a company, a body of persons or by individuals alone or in partnership, shall not be subjected in the other territory, in respect of profits or capital attributable to their permanent establishments in that other territory, to any taxation which is other, higher or more burdensome than the taxation to which the enterprises of that other territory similarly carried on are or may be subjected in respect of the like profits or capital.

3. The income, profits and capital of an enterprise of one of the territories, the capital of which is wholly or partly owned or controlled, directly or indirectly, by a resident or residents of the other territory shall not be subjected in the first-mentioned territory to any taxation which is other, higher or more burdensome than the taxation to which other enterprises of that first-mentioned territory are or may be subjected in respect of the like income, profits and capital.

4. Nothing in paragraph 1 or paragraph 2 of this Article shall be construed as obliging one of the High Contracting Parties to grant to nationals of the other High Contracting Party who are not resident in the territory of the former Party the same personal allowances, reliefs and reductions for tax purposes as are granted to his own nationals.

5. In this Article the term “nationals” means—
1. (a) in relation to Denmark, all Danish citizens and all legal persons, partnerships, associations and other entities deriving their status as such from the law in force in Denmark or in any Danish territory to which the present Convention applies by reason of extension made under Article XX;
1. (b) in relation to the United Kingdom, all British subjects and British-protected persons residing in the United Kingdom or any British territory to which the present Convention applies by reason of extension made under Article XX, and all legal persons, partnerships, associations and other entities deriving their status as such from the law in force in any British territory to which the present Convention applies.

6. In this Article the term “taxation” means taxes of every kind and description levied on behalf of any authority whatsoever.

ARTICLE XX

1. The present Convention may be extended, either in its entirety or with modifications, to any territory of one of the High Contracting Parties to which this Article applies and which imposes taxes substantially similar in character to those which are the subject of the present Convention, and any such extension shall take effect from such date and subject to such modifications and conditions (including conditions as to termination) as may be specified and agreed between the High Contracting Parties in notes to be exchanged for this purpose.

2. The termination in respect of Denmark or the United Kingdom of the present Convention under Article XXII shall, unless otherwise expressly agreed by both High Contracting Parties, terminate the application of the present Convention to any territory to which the Convention has been extended under this Article.

3. The territories to which this Article applies are—
1. (a) in relation to the United Kingdom: any territory other, than the United Kingdom for whose international relations the United Kingdom is responsible;
1. (b) in relation to Denmark: any territory other than Denmark for whose international relations Denmark is responsible.

ARTICLE XXI

1. The present Convention shall be ratified and the instruments of ratification shall be exchanged at London as soon as possible.

2. Upon exchange of ratifications the present Convention shall have effect—
1. (a) In the United Kingdom:
1. as respects income tax for any year of assessment beginning on or after the 6th April, 1949;
1. as respect surtax for any year of assessment beginning on or after the 6th April, 1948; and
1. as respects profits tax in respect of the following profits—
  1. (i) profits arising in any chargeable accounting period beginning on or after the 1st April, 1949;
  1. (ii) profits attributable to so much of any chargeable accounting period falling partly before and partly after that date as falls after that date;
  1. (iii) profits not so arising or attributable by reference to which income tax is, or but for the present Convention would be, chargeable for any year of assessment beginning on or after the 6th April, 1949.
1. (b) In Denmark:
1. as respects Danish tax for any taxation year beginning on or after the 1st April, 1949.

ARTICLE XXII

The present Convention shall continue in effect indefinitely but either of the High Contracting Parties may, on or before the 30th June in any calendar year not earlier than the year 1953, give to the other High Contracting Party, through diplomatic channels, written notice of termination and, in such event the present Convention shall cease to be effective—
1. (a) In the United Kingdom:
1. as respects income tax for any year of assessment beginning on or after the 6th April in the calendar year next following that in which the notice is given; and
1. as respects surtax for any year of assessment beginning on or after the 6th April in the calendar year in which the notice is given; and
1. as respects profits tax in respect of the following profits:—
  1. (i) profits arising in any chargeable accounting period beginning on or after the 1st April in the calendar year next following that in which the notice is given;
  1. (ii) profits attributable to so much of any chargeable accounting period falling partly before and partly after that date as falls after that date;
  1. (iii) profits not so arising or attributable by reference to which income tax is chargeable for any year of assessment beginning on or after the 6th April in the next following calendar year.
1. (b) In Denmark:
1. as respects Danish tax for any taxation year beginning on or after the 1st April in the calendar year next following that in which the notice is given.

In witness whereof the above-mentioned Plenipotentiaries have signed the present Convention and have affixed thereto their seals.

Done at London in duplicate, in the English and Danish languages, both texts being equally authentic, on the twenty-seventh day of March, one thousand nine hundred and fifty.

(L.S.) ERNEST BEVIN.

(L.S.) E. REVENTLOW.

Schedule 2

(Section 2)

1. Application

(1) The provisions of the Convention incorporated in Schedule 1 to this Order apply as modified below—
1. (a) as if the contracting parties were Saint Lucia and the Government of Denmark;
1. (b) as if the tax concerned in the case of Saint Lucia were income tax;
1. (c) as if the taxes concerned in the case of Denmark included the Defence tax;
1. (d) as if references to the date of signature were references to 22 December 1954;
1. (e) as if references to the 6th day of April were references to 1 January 1954.

(2) The extension shall have effect in Saint Lucia as respect tax for the year of assessment 1954 (or 1954/55) and for subsequent years of assessment, (and will have effect in Denmark as respects Danish tax for any taxation year beginning on or after 1 April 1954).

(3) The extension shall continue in effect indefinitely but may be terminated as respects Saint Lucia by written notice of termination given on or before 30 June in any calendar year not earlier than the year 1957 by either of the High Contracting Parties to the Convention to the other High Contracting Party through the diplomatic channel and in such event the extension shall cease to have effect in Saint Lucia as respects tax for the year of assessment beginning in the calendar year next following the date of such notice and for subsequent years of assessment and will cease to have effect in Denmark as respects Danish tax for any taxation year beginning on or after 1 April in the calendar year next following that in which the notice is given.

2. Modifications

(1) In Article VII(1) of the Convention the words “exempt from United Kingdom surtax” shall be understood for the purposes of this extension as though they read “is not liable to tax in the territory at a rate in excess of the rate applicable to a company”.

(2) In Articles VIII and IX all references to interest shall be deemed to be deleted.

Income Tax (Double Taxation Relief) (Norway) Order – Section 60

(Statutory Instrument appearing in volume 7, page 1119 of the 1957 Revision of the Laws of Saint Lucia)

Statutory Instrument appearing in volume 7, page 1119 of the 1957 Revision of the Laws of Saint Lucia

ARRANGEMENT OF REGULATIONS

1.	Citation
2.	Declaration
Schedule 1
Schedule 2

INCOME TAX (DOUBLE TAXATION RELIEF) (NORWAY) ORDER – SECTION 60

Whereas it is provided by section 52 of the Income Tax Act, 1947Editor's note: This Act was repealed by the Income Tax Act, 1965 which itself was repealed and replaced by the Income Tax Act. This Order was continued in force by the 1965 Act and section 153 of the Income Tax Act. that if the Governor General by order declares that arrangements specified in the Order were made with the Government of any territory outside Saint Lucia with a view to affording relief from double taxation in relation to income tax and any tax of a similar character imposed by the laws of that territory and that it is expedient that those arrangements have effect, the arrangements have effect in relation to Income Tax despite anything in any enactment;

And Whereas by a Convention dated the 2nd day of May, 1951 between the Government of the United Kingdom and the Government of Norway, arrangements were made among other things for the avoidance of Double Taxation;

And Whereas provision is made in the said Convention for the extension by means of an exchange of notes between the Contracting Parties of the said Convention, subject to such modifications and conditions (including conditions as to termination) as may be specified in the exchange of notes, to any territory, for whose international relations the United Kingdom is responsible, which imposes taxes substantially similar in character to those which are the subject of the said Convention;

And Whereas by an Exchange of Notes dated 18 May 1955, the said Convention with certain modifications was applied to Saint Lucia.

Now, Therefore, it is hereby ordered and declared by His Excellency the Governor General as follows—

1. Citation

This Order may be cited as the Income Tax (Double Taxation Relief) (Norway) Order.

2. Declaration

It is hereby declared—

(a) That the arrangements specified in Schedule 1 to this Order, as modified by the provisions of Schedule 2 to this Order, have been made with the Government of Norway;

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

Schedule 1

(Section 2)

Agreement Between the Government of the United Kingdom and the Norwegian Government for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income.

The Government of the United Kingdom of Great Britain and Northern Ireland and the Government of Norway,

Desiring to conclude a Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.

Have agreed as follows—

ARTICLE I

(1) The taxes which are the subject of the present Convention are—
1. (a) In Norway:
1. The national income tax, including the national defence tax on income, the communal income tax, the old age pension tax, the war pension tax, and the seamen's tax, and, for the purposes of Article XIX, the national property tax, including the national defence tax on property (hereinafter referred to as “Norwegian tax”);
1. (b) In the United Kingdom of Great Britain and Northern Ireland:
1. The income tax (including surtax) and the profits tax (hereinafter referred to as “United Kingdom tax”).

(2) The present Convention shall also apply to any other taxes of a substantially similar character imposed in Norway or the United Kingdom subsequently to the date of signature of the present Convention.

ARTICLE II

(1) In the present Convention, unless the context otherwise requires—
1. (a) The term “United Kingdom” means Great Britain and Northern Ireland, excluding the Channel Islands and the Isle of Man;
1. (b) The term “Norway” means the Kingdom of Norway, excluding Spitsbergen and Bear Island and Jan Mayen and the Norwegian dependencies outside Europe;
1. (c) The terms “one of the territories” and “the other territory” mean the United Kingdom or Norway, as the context requires;
1. (d) The term “tax” means United Kingdom tax or Norwegian tax, as the context requires;
1. (e) The term “person” includes any body of persons, corporate or not corporate;
1. (f) The term “company” means any body corporate;
1. (g) The terms “resident of the United Kingdom” and “resident of Norway” mean respectively any person who is resident in the United Kingdom for the purposes of United Kingdom tax and not resident in Norway for the purposes of Norwegian tax, and any person who is resident in Norway for the purposes of Norwegian tax and not resident in the United Kingdom for the purposes of United Kingdom tax; a company shall be regarded as resident in the United Kingdom if its business is managed and controlled in the United Kingdom and as resident in Norway, if its business is managed and controlled in Norway;
1. (h) The terms “resident of one of the territories” and “resident of the other territory” mean a person who is a resident of the United Kingdom or a person who is a resident of Norway, as the context requires;
1. (i) The terms “United Kingdom enterprise” and “Norwegian enterprise” mean respectively an industrial or commercial enterprise or undertaking carried on by a resident of the United Kingdom and an industrial or commercial enterprise or undertaking carried on by a resident of Norway, and the terms “enterprise of one of the territories” and “enterprise of the other territory” mean a United Kingdom enterprise or a Norwegian enterprise, as the context requires;
1. (j) The term “industrial or commercial profits” includes rents or royalties in respect of cinematograph films;
1. (k) The term “permanent establishment,” when used with respect to an enterprise of one of the territories, means a branch, management, factory, or other fixed place of business, but does not include an agency unless the agent has, and habitually exercises, a general authority to negotiate and conclude contracts on behalf of such enterprise or has a stock of merchandise from which he regularly fills orders on its behalf. In this connection—
  1. (i) An enterprise of one of the territories shall not be deemed to have a permanent establishment in the other territory merely because it carries on business dealings in that other territory through a bona fide broker or general commission agent acting in the ordinary course of his business as such.
  1. (ii) The fact that an enterprise of one of the territories maintains in the other territory a fixed place of business exclusively for the purchase of goods or merchandise shall not of itself constitute that fixed place of business a permanent establishment of the enterprise.
  1. (iii) The fact that a company which is a resident of one of the territories has a subsidiary company which is a resident of the other territory or which carries on a trade or business in that other territory (whether through a permanent establishment or otherwise) shall not of itself constitute that subsidiary company a permanent establishment of its parent company.

(2) Where under the present Convention any income is exempt from tax in one of the territories if (with or without other conditions) it is subject to tax in the other territory, and that income is subject to tax in that other territory, by reference to the amount thereof which is remitted to or received in that other territory, the exemption to be allowed under this Convention in the first-mentioned territory shall apply only to the amount so remitted or received.

(3) In the application of the provisions of the present Convention by one of the Contracting Parties any term not otherwise defined shall, unless the context otherwise requires, have the meaning which it has under the laws in force in the territory of that Party relating to the taxes which are the subject of the present Convention.

ARTICLE III

(1) The industrial or commercial profits of a United Kingdom enterprise shall not be subject to Norwegian tax unless the enterprise carries on a trade or business in Norway through a permanent establishment situated therein. If it carries on a trade or business as aforesaid, tax may be imposed on those profits by Norway, but only on so much of them as is attributable to that permanent establishment.

(2) The industrial or commercial profits of a Norwegian enterprise shall not be subject to United Kingdom tax unless the enterprise carries on a trade or business in the United Kingdom through a permanent establishment situated therein. If it carries on a trade or business as aforesaid, tax may be imposed on those profits by the United Kingdom, but only on so much of them as is attributable to that permanent establishment.

(3) Where an enterprise of one of the territories carries on a trade or business in the other territory through a permanent establishment situated therein, there shall be attributed to that permanent establishment the industrial or commercial profits which it might be expected to derive in that other territory if it were an independent enterprise engaged in the same or similar activities under the same or similar conditions and dealing at arm's length with the enterprise of which it is a permanent establishment.

(4) Where an enterprise of one of the territories derives profits, under contracts concluded in that territory, from sales of goods or merchandise stocked in a warehouse in the other territory for convenience of delivery and not for purposes of display, those profits shall not be attributed to a permanent establishment of the enterprise in that other territory, notwithstanding that the offers of purchase have been obtained by an agent in that other territory and transmitted by him to the enterprise for acceptance.

(5) No portion of any profits arising to an enterprise of one of the territories shall be attributed to a permanent establishment situated in the other territory by reason of the mere purchase of goods or merchandise within that other territory by the enterprise.

ARTICLE IV

Where—
1. (a) an enterprise of one of the territories participates directly or indirectly in the management, control or capital of an enterprise of the other territory, or
1. (b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of one of the territories and an enterprise of the other territory,

and, in either case, conditions are made or imposed between the 2 enterprises, in their commercial or financial relations, which differ from those which would be made between independent enterprises, then any profits which would but for those conditions have accrued to one of the enterprises but by reason of those conditions have not so accrued may be included in the profits of that enterprise and taxed accordingly.

ARTICLE V

Notwithstanding the provisions of Articles III and IV, profits which a resident of one of the territories derives from operating ships or aircraft shall be exempt from tax in the other territory.

ARTICLE VI

(1)
1. (a) Dividends paid by a company which is a resident of the United Kingdom to a resident of Norway, who is subject to tax in Norway in respect thereof and does not carry on a trade or business in the United Kingdom through a permanent establishment situated therein, shall be exempt from United Kingdom surtax.
1. (b) Norwegian tax on dividends paid by a company which is a resident of Norway to a resident of the United Kingdom, who is subject to tax in the United Kingdom in respect thereof and does not carry on trade or business in Norway through a permanent establishment situated therein, shall not exceed 5%.
1. Provided that, where the resident of the United Kingdom is a company which controls, directly or indirectly, not less than 50% of the entire voting power of the company paying the dividends, the dividends shall be exempt from Norwegian tax.

(2) Where a company which is a resident of one of the territories derives profits or income from sources within the other territory, there shall not be imposed in that other territory any form of taxation on dividends paid by the company to persons not resident in that other territory, or any tax in the nature of an undistributed profits tax on undistributed profits of the company, whether or not those dividends or undistributed profits represent, in whole or in part, profits or income so derived.

ARTICLE VII

(1) Any interest or royalty derived from sources within one of the territories by a resident of the other territory, who is subject to tax in that other territory in respect thereof and does not carry on a trade or business in the first-mentioned territory through a permanent establishment situated therein, shall be exempt from tax in that first-mentioned territory.

(2) In this Article—
1. (a) The term “interest” includes interest on bonds, securities, notes, debentures or on any other form of indebtedness;
1. (b) The term “royalty” means any royalty or other amount paid as consideration for the use of, or for the privilege of using, any copyright, patent, design, secret process or formula, trade mark or other like property, but does not include any royalty or other amount paid in respect of the operation of a mine or quarry or of any other extraction of natural resources.

(3) Where any interest or royalty exceeds a fair and reasonable consideration in respect of the indebtedness or rights for which it is paid, the exemption provided by the present Article shall apply only to so much of the interest or royalty as represents such fair and reasonable consideration.

(4) Any capital sum derived from sources within one of the territories from the sale of patent rights by a resident of the other territory, who does not carry on a trade or business in the first-mentioned territory through a permanent establishment situated therein, shall be exempt from tax in that first-mentioned territory.

ARTICLE VIII

(1) Where under the provisions of the present Convention a resident of the United Kingdom is exempt or entitled to relief from Norwegian tax, similar exemption or relief shall be applied to the undivided estates of deceased persons in so far as one or more of the beneficiaries is a resident of the United Kingdom.

(2) Norwegian tax on the undivided estate of a deceased person shall, in so far as the income accrues to a beneficiary who is resident in the United Kingdom, be allowed as a credit under Article XVI.

ARTICLE IX

(1) Remuneration, including pensions, paid by, or out of funds created by, one of the Contracting Parties to any individual in respect of services rendered to that Party in the discharge of governmental functions shall be exempt from tax in the territory of the other Contracting Party, unless the individual is a national of that other Party without being also a national of the first-mentioned Party.

(2) The provisions of this Article shall not apply to payments in respect of services rendered in connection with any trade or business carried on by either of the Contracting Parties for purposes of profit.

ARTICLE X

(1) An individual who is a resident of the United Kingdom shall be exempt from Norwegian tax on profits or remuneration in respect of personal (including professional) services performed within Norway in any year of assessment if—
1. (a) he is present within Norway for a period or periods not exceeding in the aggregate 183 days during that year, and
1. (b) the services are performed for or on behalf of a resident of the United Kingdom, and
1. (c) the profits or remuneration are subject to United Kingdom tax.

(2) An individual who is a resident of Norway shall be exempt from United Kingdom tax on profits or remuneration in respect of personal (including professional) services performed within the United Kingdom in any year of assessment, if—
1. (a) he is present within the United Kingdom for a period or periods not exceeding in the aggregate 183 days during that year, and
1. (b) the services are performed for or on behalf of a resident of Norway, and
1. (c) the profits or remuneration are subject to Norwegian tax.

(3) The provisions of this Article shall not apply to the profits or remuneration of public entertainers such, as theatre, motion picture or radio artistes, musicians and athletes.

ARTICLE XI

A resident of one of the territories shall be exempt from tax in the other territory in respect of remuneration for services performed on ships or aircraft operating outside the other territory.

ARTICLE XII

(1) Any pension (other than a pension of the kind referred to in paragraph (1) of Article IX) and any annuity, derived from sources within Norway by an individual who is a resident of the United Kingdom and subject to United Kingdom tax in respect thereof, shall be exempt from Norwegian tax.

(2) Any pension (other than a pension of the kind referred to in paragraph (1) of Article IX) and any annuity, derived from sources within the United Kingdom by an individual who is a resident of Norway and subject to Norwegian tax in respect thereof, shall be exempt from United Kingdom tax.

(3) The term “annuity” means a stated sum payable periodically at stated times, during life or during a specified or ascertainable period of time, under an obligation to make the payments in return for adequate and full consideration in money or money's worth.

ARTICLE XIII

A professor or teacher from one of the territories, who receives remuneration for teaching, during a period of temporary residence not exceeding 2 years, at a university, college, school, or other educational institution in the other territory, shall be exempt from tax in that other territory in respect of that remuneration.

ARTICLE XIV

A student or apprentice from one of the territories, who is receiving full-time education or training in the other territory, shall be exempt from tax in that other territory on payments made to him from abroad for the purposes of his maintenance, education or training.

ARTICLE XV

(1) Individuals who are residents of Norway shall be entitled to the same personal allowances, reliefs and reductions for the purposes of United Kingdom tax as British subjects not resident in the United Kingdom.

(2) Individuals who are residents of the United Kingdom shall be entitled to the same personal allowances, reliefs and reductions for the purposes of Norwegian tax as Norwegian nationals not resident in Norway.

ARTICLE XVI

(1) Subject to the provisions of the laws of the United Kingdom regarding the allowance as a credit against United Kingdom tax of tax payable in a territory outside the United Kingdom, Norwegian tax payable, whether directly or by deduction, in respect of income from sources within Norway shall be allowed as a credit against any United Kingdom tax payable in respect of that income.

Where such income is an ordinary dividend paid by a company resident in Norway the credit shall take into account (in addition to any Norwegian tax appropriate to the dividend) the Norwegian tax payable by the company in respect of its profits; and, where it is a dividend paid on participating preference shares and representing both a dividend at the fixed rate to which the shares are entitled and an additional participation in profits, the Norwegian tax so payable by the company shall likewise be taken into account in so far as the dividend exceeds that fixed rate.

Provided that for the purposes of this paragraph of this Article, the credit to be allowed for Norwegian communal income tax shall not exceed one-half of the said communal income tax.

(2) Where United Kingdom tax is payable, whether directly or by deduction, in respect of income from sources within the United Kingdom, and that income is chargeable also to Norwegian tax, the Norwegian tax payable by the person entitled to such income on his total income chargeable to Norwegian tax shall be reduced by an amount which bears the same proportion to that Norwegian tax as the income from sources within the United Kingdom bears to the said total income. Provided that the Norwegian Ministry of Finance and Customs may decide that the deduction shall not exceed the amount of the United Kingdom tax.

Where such income is an ordinary dividend paid by a company resident in the United Kingdom, the deduction, in the event that it is restricted to the amount of the United Kingdom tax, shall take into account (in addition to the United Kingdom tax appropriate to the dividend) the United Kingdom profits tax payable by the company in respect of its profits; and, where it is a dividend paid on participating preference shares and representing both a dividend at a fixed rate to which the shares are entitled and an additional participation in profits, the profits tax so payable by the company shall likewise be taken into account in so far as the dividend exceeds that fixed rate.

(3) Where income is derived from sources outside both the United Kingdom and Norway by a person who is resident in the United Kingdom for the purposes of United Kingdom tax and also resident in Norway for the purposes of Norwegian tax the income may be taxed in both countries (subject to any Convention which may exist between either of the Contracting Parties and the territory or territories from which the income is derived). A credit shall be allowed in accordance with paragraph (1) of this Article against any United Kingdom tax payable in respect of that income, equal to that proportion of the United Kingdom tax or the Norwegian tax, which ever is the less, which such person's income from sources within the United Kingdom bears to the sum of his income from sources within the United Kingdom and his income from sources within Norway; and a deduction shall be allowed in accordance with paragraph (2) of this Article against any Norwegian tax payable in respect of that income equal to that proportion of the United Kingdom tax or the Norwegian tax, whichever is the less, which such person's income from sources within Norway bears to the sum of his income from sources within the United Kingdom and his income from sources within Norway.

(4) For the purposes of this Article, profits or remuneration for personal (including professional) services performed in one of the territories shall be deemed to be income from sources within that territory, except that the remuneration of a director of a company shall be deemed to be income from sources within the territory in which the company is resident, and the services of an individual whose services are wholly or mainly performed in ships or aircraft operated by a resident of one of the territories shall be deemed to be performed in that territory.

ARTICLE XVII

(1) The taxation authorities of the Contracting Parties shall exchange such information (being information which is at their disposal under their respective taxation laws in the normal course of administration) as is necessary for carrying out the provisions of the present Convention or for the prevention of fraud or for the administration of statutory provisions against legal avoidance in relation to the taxes which are the subject of the present Convention. Any information so exchanged shall be treated as secret and shall not be disclosed to any persons other than persons (including a Court) concerned with the assessment, determination and collection of the taxes which are the subject of the present Convention. No information as aforesaid shall be exchanged which would disclose any trade, business, industrial or professional secret or trade process.

As used in this Article, the term “taxation authorities” means, in the case of the United Kingdom, the Commissioners of Inland Revenue or their authorised representative; in the case of Norway, the Ministry of Finance and Customs: and, in the case of any territory to which the present Convention is extended under Article XX, the competent authority for the administration in such territory of the taxes to which the present Convention applies.

ARTICLE XVIII

The Agreement of 18th December, 1924, between Great Britain and Norway for the reciprocal exemption from income tax in certain cases of profits accruing from the business of shipping, and the Agreement of 21st December, 1938 between the United Kingdom and Norway for the reciprocal exemption from taxes in certain cases of profits arising through agencies, shall not have effect—
1. (a) in Norway, for any period for which the present Convention has effect in that country;
1. (b) in the United Kingdom, in relation to any tax for any period for which the present Convention has effect as respects that tax.

ARTICLE XIX

(1) The nationals of one of the Contracting Parties shall not be subjected in the territory of the other Contracting Party to any taxation or any requirement connected therewith which is other, higher or more burdensome than the taxation and connected requirements to which the nationals of the latter Party are or may be subjected.

(2) The enterprises of one of the territories shall not be subjected in the other territory, in respect of profits or capital attributable to their permanent establishments in that other territory, to any taxation which is other, higher or more burdensome than the taxation to which the enterprises of that other territory are or may be subjected in respect of the like profits or capital.

(3) The income, profits and capital of an enterprise of one of the territories, the capital of which is wholly or partly owned or controlled, directly or indirectly by a resident or residents of the other territory shall not be subjected in the first-mentioned territory to any taxation which is other, higher or more burdensome than the taxation to which other enterprises of that first-mentioned territory are or may be subjected in respect of the like income, profits and capital.

(4) Nothing in paragraph (1) or paragraph (2) of this Article shall be construed as obliging one of the Contracting Parties to grant to nationals of the other Contracting Party who are not resident in the territory of the former Party the same personal allowances, reliefs and reductions for tax purposes as are granted to its own nationals.

(5) In this Article the term “nationals” means—
1. (a) in relation to Norway, all Norwegian citizens and all juridical persons domiciled in Norway;
1. (b) in relation to the United Kingdom all British subjects and British protected persons residing in the United Kingdom or any British territory to which the present Convention applies by reason of extension made under Article XX, and all legal persons, partnerships and associations deriving their status as such from the law in force in any British territory to which the present Convention applies.

(6) In this Article the term “taxation” means taxes of every kind and description levied on behalf of any authority whatsoever.

ARTICLE XX

(1) The present Convention may be extended, either in its entirety or with modifications, to any territory for whose international relations the United Kingdom is responsible and which imposes taxes substantially similar in character to those which are the subject of the present Convention, and any such extension shall take effect from such date and subject to such modifications and conditions (including conditions as to termination) as may be specified and agreed between the Contracting Parties in notes to be exchanged for this purpose.

(2) The termination in respect of Norway or the United Kingdom of the present Convention under Article XXII shall, unless otherwise expressly agreed by both Contracting Parties, terminate the application of the present Convention to any territory to which the Convention has been extended under this Article.

(3) The territories to which this Article applies are:
1. (a) in relation to the United Kingdom: any territory other than the United Kingdom for whose international relations the United Kingdom is responsible;
1. (b) in relation to Denmark: any territory other than Denmark for whose international relations Denmark is responsible.

ARTICLE XXI

(1) The present Convention shall be ratified and the instruments of ratification shall be exchanged at Oslo as soon as possible.

(2) The present Convention shall enter into force upon the exchange of ratifications and the foregoing provisions thereof shall have effect—
1. (a) In the United Kingdom:
1. as respects income tax for any year of assessment beginning on or after 6th April, 1950;
1. as respects surtax for any year of assessment beginning on or after 6th April, 1949; and
1. as respects profits tax in respect of the following profits:—
  1. (i) profits arising in any chargeable accounting period beginning on or after 1st April, 1950;
  1. (ii) profits attributable to so much of any chargeable accounting period falling partly before and partly after that date as falls after that date;
  1. (iii) profits not so arising or attributable by reference to which income tax is, or but for the present convention would be, chargeable for any year of assessment beginning on or after 6th April, 1950;
1. (b) In Norway:
1. for the taxable years beginning on or after 1st January, 1950.

ARTICLE XXII

The present Convention shall continue in force indefinitely but either of the Contracting Parties may, on or before 30th June in any calendar year not earlier than the year 1954, give to the other Contracting Party, through diplomatic channels, written notice of termination, provided that such notice of termination may be given in any year before 1954 if there should be any important change in the laws of the other Contracting Party affecting the application of Article XVI. In such event, the present Convention shall cease to be effective—
1. (a) In the United Kingdom:
1. as respects income tax, for any year of assessment beginning on or after 6th April in the calendar year next following that in which the notice is given:
1. as respects surtax, for any year of assessment beginning on or after 6th April in the calendar year in which the notice is given; and as respects profits tax, in respect of the following profits—
  1. (i) profits arising in any chargeable accounting period beginning on or after 1st April in the calendar year next following that in which the notice is given;
  1. (ii) profits attributable to so much of any chargeable accounting period falling partly before and partly after that date as falls after that date:
  1. (iii) profits not so arising or attributable by reference to which income tax is chargeable for any year of assessment beginning on or after 6th April in the next following calendar year;
1. (b) In Norway:
1. for the taxable years beginning on or after 1st January in the calendar year next following that in which the notice is given.

In Witness Whereof the undersigned, being duly authorised by their respective Governments, have signed the present Convention and have affixed thereto their seals.

Done at London, in duplicate, in the English and Norwegian languages, both texts being equally authoritative, on the 2nd day of May, 1951.
(L.S.) HERBERT MORRISON,
(L.S.) P. PREBENSEN.

Schedule 2

(Section 2)

1. Application

(a) The provisions of the Convention incorporated in Schedule 1 to this Order shall apply as modified below—
1. (i) as if the Contracting Parties were Saint Lucia and the Government of Norway; and as if the tax concerned in the case of Saint Lucia were Income Tax;
1. (ii) as if references to the date of signature were references to the 18th day of May, 1955.

(b) The extension shall have effect in Saint Lucia as respects tax for the year of assessment 1955 and for subsequent years of assessment, and will have effect in Norway – as respects Norwegian tax for taxable years beginning on or after 1st January, 1954.

(c) The extension shall continue in effect indefinitely but may be terminated as respects Saint Lucia by written notice of termination given on or before the 30th June in any calendar year not earlier than the year 1957 by either of the Contracting Parties to the Convention to the other Contracting Party through the diplomatic channel and in such event the extension shall cease to have effect in Saint Lucia as respects tax for the year of assessment beginning in the calendar year next following the date of such notice and for subsequent years of assessment, and will cease to have effect in Norway as respects Norwegian tax for the taxable years beginning on or after 1st January in the calendar year in which the notice is given.

2. Modifications

(a) In article VI(1) of the Convention the words “shall be exempt from United Kingdom surtax” shall be understood for the purposes of this extension as though they read “is not liable to tax in the territory at a rate in excess of the rate applicable to a company”.

(b)
1. (i) In Article VII all references to interest is considered to be deleted; and
1. (i) in paragraph 2 of Article XVI references to income (except in the phrase “total income”) is considered not to include interest.

Income tax (Double Taxation Relief) (U.S.A.) Order – Section 60

(Statutory Instrument 42/1958)

Statutory Instrument 42/1958 .. in force 27 December 1958

ARRANGEMENT OF REGULATIONS

1.	Citation
2.	Declaration
Schedule 1
Schedule 2

INCOME TAX (DOUBLE TAXATION RELIEF) (U.S.A.) ORDER – SECTION 60

Commencement [27 December 1958]

WHEREAS it is provided by section 52(1) of the Income Tax Act, 1947Editor's note: This Act was repealed by the Income Tax Act, 1965 which itself was repealed and replaced by the Income Tax Act. This Order was continued in force by the 1965 Act and section 153 of the Income Tax Act. that if the Governor General by Order declares that arrangements specified in the Order were made with the Government of any territory outside Saint Lucia with a view to affording relief from double taxation in relation to income tax and any tax of a similar character imposed by the Laws of that territory and that it is expedient that those arrangements have effect, the arrangements have effect in relation to income tax despite anything in any enactment;

AND WHEREAS by a Convention dated 16 April 1945 and a protocol thereto dated 6 June 1946 and a further protocol thereto dated 25 May 1954 and a further protocol thereto dated 19 August 1957 between the Government of the United Kingdom and the Government of the United States, arrangements were made among other things for the avoidance of double taxation;

AND WHEREAS provision is made in the said Convention as amended by the said protocols for the application by means of a notification of extension given by either of the said Governments to the other Government and acceptance thereof by the other Government of the said Convention as amended, subject to such modifications, if any, as may be specified in the notification, to all or any of its Colonies, overseas territories, protectorates or territories in respect of which it exercise a mandate or trusteeship, which impose taxes substantially similar in character to those which are the subject of the said Convention.

AND WHEREAS by acceptance of a notification dated 3 December 1958 the said Convention as amended, with certain modifications, was applied to Saint Lucia;

1. Citation

This Order may be cited as the Income Tax (Double Taxation Relief) (U.S.A.) Order.

2. Declaration

It is hereby declared—

(a) that the arrangements specified in Schedule 1 to this Order, as modified by the provisions of Schedule 2 to this Order, have been made with the Government of the United States of America;

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

Schedule 1

(Section 2)

PART 1
CONVENTION BETWEEN THE GOVERNMENT OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND AND THE GOVERNMENT OF THE UNITED STATES OF AMERICA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME

The Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the United States of America,

Desiring to conclude a Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income,

Have appointed for that purpose as their Plenipotentiaries:

The Government of the United Kingdom of Great Britain and Northern Ireland:

The Right Honourable the Earl of Halifax, K.G., Ambassador Extraordinary in Washington; and

The Government of the United States of America:

Mr. Edward R. Stettinius, Jr., Secretary of State;

Who, having exhibited their respective full powers, found in good and due form, have agreed as follows—

ARTICLE 1

(1) The taxes which are the subject of the present Convention are—
1. (a) In the United States of America:
1. The Federal income taxes, including surtaxes and excess profits taxes (hereinafter referred to as United States tax).
1. (b) In the United Kingdom of Great Britain and Northern Ireland;
1. The income tax (including surtax), the excess profits tax and the national defence contribution (hereinafter referred to as United Kingdom tax).

(2) The present Convention shall also apply to any other taxes of a substantially similar character imposed by either Contracting Party subsequently to the date of signature of the present Convention or by the Government of any territory to which the present Convention is extended under Article XXII.

ARTICLE II

(1) In the present Convention, unless the context otherwise requires—
1. (a) The term “United States” means the United States of America, and when used in a geographical sense means the States, the Territories of Alaska and of Hawaii, and the District of Columbia.
1. (b) The term “United Kingdom” means Great Britain and Northern Ireland, excluding the Channel Islands and the Isle of Man.
1. (c) The terms “territory of one of the Contracting Parties” and “territory of the other Contracting Party” mean the United States or the United Kingdom as the context requires.
1. (d) The term “United States corporation” means a corporation, association or other like entity created or organised in or under the laws of the United States.
1. (e) The term “United Kingdom corporation” means any kind of juridical person created under the laws of the United Kingdom.
1. (f) The terms “corporation of one Contracting Party” and “corporation of the other Contracting Party” mean a United States corporation, or a United Kingdom corporation as the context requires.
1. (g) The term “resident of the United Kingdom” means any person (other than a citizen of the United States or a United States corporation) who is resident in the United Kingdom for the purposes of United Kingdom tax and not resident in the United States for the purposes of United States tax. A corporation is to be regarded as resident in the United Kingdom if its business is managed and controlled in the United Kingdom.
1. (h) The term “resident of the United States” means any individual who is resident in the United States for the purposes of United States tax and not resident in the United Kingdom for the purposes of United Kingdom tax, and any United States corporation and any partnership created or organised in or under the laws of the United States, being a corporation or partnership which is not resident in the United Kingdom for the purposes of United Kingdom tax.
1. (1) The term “United Kingdom enterprise” means an industrial or commercial enterprise or undertaking carried on by a resident of the United Kingdom.
1. (j) The term “United States enterprise” means an industrial or commercial enterprise or undertaking carried on by a resident of the United States.
1. (k) The terms “enterprise of one of the Contracting Parties” and “enterprise of the other Contracting Party” mean a United States enterprise or a United Kingdom enterprise, as the context requires.
1. (l) The term “permanent establishment” when used with respect to an enterprise of one of the Contracting Parties means a branch, management, factory or other fixed place of business, but does not include an agency unless the agent has, and habitually exercises, a general authority to negotiate and conclude contracts on behalf of such enterprise or has a stock of merchandise from which he regularly fills orders on its behalf. An enterprise of one of the Contracting Parties shall not be deemed to have a permanent establishment in the territory of the other Contracting Party merely because it carries on business dealings in the territory of such other Contracting Party through a bona fide commission agent, broker or custodian acting in the ordinary course of his business as such. The fact that an enterprise of one of the Contracting Parties maintains in the territory of the other Contracting Party a fixed place of business exclusively for the purchase of goods or merchandise shall not of itself constitute such fixed place of business a permanent establishment of such enterprise. The fact that a corporation of one Contracting Party has a subsidiary corporation which is a corporation of the other Contracting Party or which is engaged in trade or business in the territory of such other Contracting Party (whether through a permanent establishment or otherwise) shall not of itself constitute that subsidiary corporation a permanent establishment of its parent corporation.

(2) For the purposes of Articles VI, VII, VIII, IX and XIV a resident of the United Kingdom shall not be deemed to be engaged in trade or business in the United States in any taxable year unless such resident has a permanent establishment situated therein in such taxable year. The same principle shall be applied, mutatis mutandis, by the United Kingdom in the case of a resident of the United States.

(3) In the application of the provisions of the present Convention by one of the Contracting Parties any term not otherwise defined shall, unless the context otherwise requires, have the meaning which it has under the laws of that Contracting Party relating to the taxes which are the subject of the present Convention.

ARTICLE III

(1) A United Kingdom enterprise shall not be subject to United States tax in respect of its industrial or commercial profits unless it is engaged in trade or business in the United States through a permanent establishment situated therein. If it is so engaged, United States tax may be imposed upon the entire income of such enterprise from sources within the United States.

(2) A United States enterprise shall not be subject to United Kingdom tax in respect of its industrial or commercial profits unless it is engaged in trade or business in the United Kingdom through a permanent establishment situated therein. If it is so engaged, United Kingdom tax may be imposed upon the entire income of such enterprise from sources within the United Kingdom : Provided that nothing in this paragraph shall affect any provisions of the law of the United Kingdom regarding the imposition of United Kingdom excess profits tax and national defence contribution in the case of inter-connected companies.

(3) Where an enterprise of one of the Contracting Parties is engaged in trade or business in the territory of the other Contracting Party through a permanent establishment situated therein, there shall be attributed to such permanent establishment the industrial or commercial profits which it might be expected to derive if it were an independent enterprise engaged in the same or similar activities under the same or similar conditions and dealing at arm's length with the enterprise of which it is a permanent establishment, and the profits so attributed shall, subject to the law of such other Contracting Party, be deemed to be income from sources within the territory of such other Contracting Party.

(4) In determining the industrial or commercial profits from sources within the territory of one of the Contracting Parties of an enterprise of the other Contracting Party, no profits shall be deemed to arise from the mere purchase of goods or merchandise within the territory of the former Contracting Party by such enterprise.

ARTICLE IV

Where an enterprise of one of the Contracting Parties, by reason of its participation in the management, control or capital of an enterprise of the other Contracting Party, makes with or imposes on the latter, in their commercial or financial relations, conditions different from those which would be made with an independent enterprise, any profits which would but for those conditions have accrued to one of the enterprises but by reason of those conditions have not so accrued, may be included in the profits of that enterprise and taxed accordingly.

ARTICLE V

(1) Notwithstanding the provisions of Articles III and IV of the present Convention, profits which an individual (other than a citizen of the United States) resident in the United Kingdom or a United Kingdom corporation derives from operating ships documented or aircraft registered under the laws of the United Kingdom, shall be exempt from United States tax.

(2) Notwithstanding the provisions of Articles III and IV of the present Convention, profits which a citizen of the United States not resident in the United Kingdom or a United States corporation derives from operating ships documented or aircraft registered under the laws of the United States, shall be exempt from United Kingdom tax.

(3) This Article shall be deemed to have superseded, on and after the first day of January, 1945, as to United States tax, and on and after the 6th day of April, 1945, as to United Kingdom tax, the arrangements relating to reciprocal exemption of shipping profits from income tax effected between the Government of the United States and the Government of the United Kingdom by exchange of Notes dated August 11, 1924, November 18, 1924, November 26, 1924, January 15, 1925, February 13, 1925, and March 16, 1925, which shall accordingly cease to have effect.

ARTICLE VI

(1) The rate of United States tax on dividends derived from a United States corporation by a resident of the United Kingdom who is subject to United Kingdom tax on such dividends and not engaged in trade or business in the United States shall not exceed 15%.: Provided that such rate of tax shall not exceed 5%, if such resident is a corporation controlling, directly or indirectly, at least 95%, of the entire voting power in the corporation paying the dividend, and not more than 25%, of the gross income of such paying corporation is derived from interest and dividends, other than interest and dividends received from its own subsidiary corporations. Such reduction of the rate to 5%, shall not apply if the relationship of the 2 corporations has been arranged or is maintained primarily with the intention of securing such reduced rate.

(2) Dividends derived from sources within the United Kingdom by an individual who is (a) a resident of the United States, (b) subject to United States tax with respect to such dividends and (c) not engaged in trade or business in the United Kingdom, shall be exempt from United Kingdom surtax.

(3) Either of the contracting Parties may terminate this Article by giving written notice of termination to the other Contracting Party, through diplomatic channels, on or before the thirtieth day of June in any year after the year 1945, and in such event paragraph (1) hereof shall cease to be effective as to United States tax on and after the first day of January, and paragraph (2) hereof shall cease to be effective as to United Kingdom tax on and after the 6th day of April, in the year next following that in which such notice was given.

ARTICLE VII

(1) Interest (on bonds, securities, notes, debentures, or on any other form of indebtedness) derived from sources within the United States by a resident of the United Kingdom who is subject to United Kingdom tax on such interest and not engaged in trade or business in the United States, shall be exempt from United States tax ; but such exemption shall not apply to such interest paid by a United States corporation to a corporation resident in the United Kingdom controlling, directly or indirectly, more than 50%, of the entire voting power in the paying corporation.

(2) Interest (on bonds, securities, notes, debentures, or on any other form of indebtedness) derived from sources within the United Kingdom by a resident of the United States who is subject to United States tax on such interest and not engaged in trade or business in the United Kingdom, shall be exempt from United Kingdom tax ; but such exemption shall not apply to such interest paid by a corporation resident in the United Kingdom to a United States corporation controlling, directly or indirectly, more than 50%, of the entire voting power in the paying corporation.

ARTICLE VIII

(1) Royalties and other amounts paid as consideration for the use of, or for the privilege of using, copyrights, patents, designs, secret processes and formulae, trade marks, and other like property, and derived from sources within the United States by a resident of the United Kingdom who is subject to United Kingdom tax on such royalties or other amounts and not engaged in trade or business in the United States, shall be exempt from United States tax.

(2) Royalties and other amounts paid as consideration for the use of, or for the privilege of using, copyrights, patents, designs, secret processes and formulae, trade-marks and other like property, and derived from sources within the United Kingdom by a resident of the United States who is subject to United States tax on such royalties or other amounts and not engaged in trade or business in the United Kingdom, shall be exempted from United Kingdom tax.

(3) For the purposes of this Article the term “royalties” shall be deemed to include rentals in respect of motion picture films.

ARTICLE IX

(1) The rate of United States tax on royalties in respect of the operation of mines or quarries or of other extraction of natural resources, and on rentals from real property or from an interest in such property, derived from sources within the United States by a resident of the United Kingdom who is subject to United Kingdom tax with respect to such royalties or rentals and not engaged in trade or business in the United States, shall not exceed 15%. : Provided that any such resident may elect for any taxable year to be subject to United States tax as if such resident were engaged in trade or business in the United States.

(2) Royalties in respect of the operation of mines or quarries of other extraction of natural resources, and rentals from real property or from an interest in such property, derived from sources within the United Kingdom by an individual who is (a) a resident of the United States, (b) subject to United States tax with respect to such royalties and rentals, and (c) not engaged in trade or business in the United Kingdom, shall be exempt from United Kingdom surtax.

ARTICLE X

(1) Any salary, wage, similar remuneration, or pension, paid by the Government of the United States to an individual (other than a British subject who is not also a citizen of the United States) in respect of services rendered to the United States in the discharge of governmental functions, shall be exempt from United Kingdom tax.

(2) Any salary, wage, similar remuneration, or pension, paid by the Government of the United Kingdom to an individual (other than a citizen of the United States who is not also a British subject) in respect of services rendered to the United Kingdom in the discharge of governmental functions, shall be exempt from United States tax.

(3) The provisions of this Article shall not apply to payments in respect of services rendered in connection with any trade or business carried on by either of the Contracting Parties for purposes of profit.

ARTICLE XI

(1) An individual who is a resident of the United Kingdom shall be exempt from United States tax upon compensation for personal (including professional) services performed during the taxable year within the United States if (a) he is present within the United States for a period or periods not exceeding in the aggregate 183 days during such taxable year, and (b) such services are performed for or on behalf of a person resident in the United Kingdom.

(2) An individual who is a resident of the United States shall be exempt from United Kingdom tax upon profits, emoluments or other remuneration in respect of personal (including professional) services performed within the United Kingdom in any year of assessment if (a) he is present within the United Kingdom for a period or periods not, exceeding in the aggregate 183 days during that year, and (b) such services are performed for or on behalf of a person resident in the United States.

(3) The provisions of this Article shall not apply to the compensation, profits, emoluments or other remuneration of public entertainers such as stage, motion picture or radio artists, musicians and athletes.

ARTICLE XII

(1) Any pension (other than a pension to which Article X applies), and any life annuity, derived from sources within the United States by an individual who is a resident of the United Kingdom shall be exempt from United States tax.

(2) Any pension (other than a pension to which Article X applies), and any life annuity, derived from sources within the United Kingdom by an individual who is a resident of the United States shall be exempt from United Kingdom tax.

(3) The term “life annuity” means a stated sum payable periodically at stated times, during life or during a specified or ascertainable period of time, under an obligation to make the payments in consideration of money paid.

ARTICLE XIII

(1) Subject to section 131 of the United States Internal Revenue Code as in effect on the first day of January, 1945, United Kingdom tax shall be allowed as a credit against United States tax. For this purpose, the recipient of a dividend paid by a corporation which is a resident of the United Kingdom shall be deemed to have paid the United Kingdom income tax appropriate to such dividend if such recipient elects to include in his gross income for the purposes of United States tax the amount of such United Kingdom income tax.

(2) Subject to such provisions (which shall not affect the general principle hereof) as may be enacted in the United Kingdom, United States tax payable in respect of income from sources within the United States shall be allowed as a credit against any United Kingdom tax payable in respect of that income. Where such income is an ordinary dividend paid by a United States corporation, such credit shall take into account (in addition to any United States income tax deducted from or imposed on such dividend) the United States income tax imposed on such corporation in respect of its profits, and where it is a dividend paid on participating preference shares and representing both a dividend at the fixed rate to which the shares are entitled and an additional participation in profits, such tax on profits shall likewise be taken into account in so far as the dividend exceeds such fixed rate.

(3) For the purposes of this Article, compensation, profits, emoluments and other remuneration for personal (including professional) services shall be deemed to be income from sources within the territory of the Contracting Party where such services are performed.

ARTICLE XIV

A resident of the United Kingdom not engaged in trade or business in the United States shall be exempt from United States tax on gains from the sale or exchange of capital assets.

ARTICLE XV

Dividends and interest paid on or after the first day of January, 1945, by a United Kingdom corporation shall be exempt from United States tax except where the recipient is a citizen of or a resident of the United States or a United States corporation.

ARTICLE XVI

A United Kingdom corporation shall be exempt from United States tax on its accumulated or undistributed earnings, profits, income or surplus, if individuals who are residents of the United Kingdom control, directly or indirectly, throughout the last half of the taxable year, more than 50%, of the entire voting power in such corporation.

ARTICLE XVII

(1) The United States income tax liability for any taxable year beginning prior to the 1st January, 1936, of any individual (other than a citizen of the United States) resident in the United Kingdom, or of any United Kingdom corporation, remaining unpaid on the date of signature of the present Convention, may be adjusted on a basis satisfactory to the United States Commissioner of Internal Revenue: Provided that the amount to be paid in settlement of such liability shall not exceed the amount of the liability which would have been determined if—
1. (a) the United States Revenue Act of 1936 (except in the case of a United Kingdom corporation in which more than 50%, of the entire voting power was controlled, directly or indirectly, throughout the latter half of the taxable year, by citizens or residents of the United States), and
1. (b) Articles XV and XVI of the present Convention,

had been in effect for such year. If the taxpayer was not, within the meaning of such Revenue Act, engaged in trade or business in the United States and had no office or place of business therein during the taxable year, the amount of interest and penalties shall not exceed 50%, of the amount of the tax with respect to which such interest and penalties have been computed.

(2) The United States income tax unpaid on the date of signature of the present Convention for any taxable year beginning after the 31 December 1935, and prior to 1 January 1945, in the case of an individual (other than a citizen of the United States) resident of the United Kingdom, or in the case of any United Kingdom corporation shall be determined as if the provisions of Articles XV and XVI of the present Convention had been in effect for such taxable year.

(3) The provisions of paragraph (1) of this Article shall not apply—
1. (a) unless the taxpayer files with the Commissioner of Internal Revenue on or before 31 December 1947, a request that such tax liability be so adjusted and furnishes such information as the Commissioner may require; or
1. (b) in any case in which the Commissioner is satisfied that any deficiency in tax is due to fraud with intent to evade the tax.

ARTICLE XVIII

A professor or teacher from the territory of one of the Contracting Parties who visits the territory of the other Contracting Party for the purpose of teaching, for a period not exceeding 2 years, at a university, college, school or other educational institution in the territory of such other Contracting Party shall be exempted by such other Contracting Party from tax on his remuneration for such teaching for such period.

ARTICLE XIX

A student or business apprentice from the territory of one of the Contracting Parties who is receiving full-time education or training in the territory of the other Contracting Party shall be exempted by such other Contracting Party from tax on payments made to him by persons within the territory of the former Contracting Party for the purposes of his maintenance, education or training.

ARTICLE XX

(1) The taxation authorities of the Contracting Parties shall exchange such information (being information available under the respective taxation laws of the Contracting Parties) as is necessary for carrying out the provisions of the present Convention or for the prevention of fraud or the administration of statutory provisions against legal avoidance in relation to the taxes which are the subject of the present Convention. Any information so exchanged shall be treated as secret and shall not be disclosed to any person other than those concerned with the assessment and collection of the taxes which are the subject of the present Convention. No information shall be exchanged which would disclose any trade secret or trade process.

(2) As used in this Article, the term “taxation authorities” means, in the case of the United States, the Commissioner of Internal Revenue or his authorised representative; in the case of the United Kingdom, the Commissioners of Inland Revenue or their authorised representative ; and, in the case of any territory to which the present Convention is extended under Article XXII, the competent authority for the administration in such territory of the taxes to which the present Convention applies.

ARTICLE XXI

(1) The nationals of one of the Contracting Parties shall not, while resident in the territory of the other Contracting Party, be subjected therein to other or more burdensome taxes than are the nationals of such other Contracting Party, resident in its territory.

(2) The term “nationals” as used in this Article means—
1. (a) In relation to the United Kingdom, all British subjects and British protected persons, from the United Kingdom or any territory with respect to which the present Convention is applicable by reason of extension made by the United Kingdom under Article XXII; and
1. (b) In relation to the United States, United States citizens, and all persons under the protection of the United States, from the United States or any territory to which the present Convention is applicable by reason of extension made by the United States under Article XXII;

and includes all legal persons, partnerships and associations deriving their status as such from, or created or organised under, the laws in force in any territory of the Contracting Parties to which the present Convention applies.

(3) In this Article the word “taxes” means taxes of every kind or description, whether national, federal, state, provincial or municipal.

ARTICLE XXII

(1) Either of the Contracting Parties may, at the time of exchange of instruments of ratification or thereafter while the present Convention continues in force, by a written notification of extension given to the other Contracting Party through diplomatic channels, declare its desire that the operation of the present Convention shall extend to all or any of its Colonies, overseas territories, protectorates, or territories in respect of which it exercises a mandate, which impose taxes substantially similar in character to those which are the subject of the present Convention. The present Convention shall apply to the territory or territories named in such notification on the date or dates specified in the notification (not being less than 60 days from the date of the notification) or, if no date is specified in respect of any such territory, on the sixtieth day after the date of such notification, unless, prior to the date on which the Convention would otherwise become applicable to a particular territory, the Contracting Party to whom notification is given shall have informed the other Contracting Party in writing through diplomatic channels that it does not accept such notification as to that territory. In the absence of such extension, the present Convention shall not apply to any such territory.

(2) At any time after the expiration of one year from the entry into force of an extension under paragraph (1) of this Article, either of the Contracting Parties may, by written notice of termination given to the other Contracting Party through diplomatic channels, terminate the application of the present Convention to any territory to which it has been extended under paragraph (1), and in such event the present Convention shall cease to apply, 6 months after the date of such notice, to the territory or territories named therein, but without affecting its continued application to the United States, the United Kingdom or to any other territory to which it has been extended under paragraph (1) hereof.

(3) In the application of the present Convention in relation to any territory to which it is extended by notification by the United Kingdom or the United States references to the “United Kingdom” or, as the case may be, the “United States” shall be construed as references to that territory.

(4) The termination in respect of the United States or the United Kingdom of the present Convention under Article XXIV or of Article VI shall, unless otherwise expressly agreed by both Contracting Parties, terminate the application of the present Convention or, as the case may be, that Article to any territory to which the Convention has been extended by the United States or the United Kingdom.

(5) The provisions of the preceding paragraphs of this Article shall apply to the channel Islands and the Isle of Man as if they were colonies of the United Kingdom.

ARTICLE XXIII

(1) The present Convention shall be ratified and the instruments of ratification shall be exchanged at Washington as soon as possible.

(2) Upon exchange of ratifications, the present Convention shall have effect—
1. (a) as respects United States tax, for the taxable years beginning on or after the first day of January, 1945;
1. (b)
  1. (i) as respects United Kingdom income tax, for the year of assessment beginning on the 6th day of April, 1945, and subsequent years;
  1. (ii) as respects United Kingdom surtax, for the year of assessment beginning on the 6th day of April, 1944, and subsequent years; and
  1. (iii) as respects United Kingdom excess profits tax and national defence contribution, for any chargeable accounting period beginning on or after the first day of April, 1945, and for the unexpired portion of any chargeable accounting period current at that date.

ARTICLE XXIV

(1) The present Convention shall continue in effect indefinitely but either of the Contracting Parties may, on or before the 30th day of June in any year after the year 1946, give to the other Contracting Party, through diplomatic channels, notice of termination and, in such event, the present Convention shall cease to be effective—
1. (a) as respects United States tax for the taxable years beginning on or after the first day of January in the year next following that in which such notice is given;
1. (b)
  1. (i) as respects United Kingdom income tax, for any year of assessment beginning on or after the 6th day of April in the year next following that in which such notice is given;
  1. (i) as respects United Kingdom surtax, for any year of assessment beginning on or after the 6th day of April in the year in which such notice is given; and
  1. (iii) as respects United Kingdom excess profits tax and national defence contribution, for any chargeable accounting period beginning on or after the first day of April in the year next following that in which such notice is given and for the unexpired portion of any chargeable accounting period current at that date.

(2) The termination of the present Convention or of any Article thereof shall not have the effect of reviving any treaty or arrangement abrogated by the present Convention or by treaties previously concluded between the Contracting Parties.

In witness whereof the above-mentioned Plenipotentiaries have signed the present Convention and have affixed thereto their seals.

Done at Washington, in duplicate, on the sixteenth day of April, one thousand nine hundred and forty-five.

For the Government of the United Kingdom of Great Britain and Northern Ireland:
(L.S.) HALIFAX.
For the Government of the United States of America :
(L.S.) E. R. STETTINIUS, Jr.

PART 2
PROTOCOL

The Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the United States of America,

Desiring to conclude a supplementary Protocol modifying in certain respects the Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income which was signed at Washington on April 16th, 1945,

Have agreed as follows :

ARTICLE 1

Paragraph (3) of Article XI of the Convention of April 16th, 1945, for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income shall be deemed to be deleted and of no effect.

ARTICLE II

This Protocol, which shall be regarded as an integral part of the said Convention, shall be ratified and the instruments of ratification thereof shall be exchanged at Washington.

IN WITNESS WHEREOF the undersigned Plenipotentiaries, being authorized thereto by their respective Governments, have signed this Protocol and have affixed thereto their seals.

DONE at Washington, in duplicate, this sixth day of June, 1946.

FOR THE GOVERNMENT OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND:
john balfour,
His Majesty's
Envoy Extraordinary and Minister Plenipotentiary in Washington.

FOR THE GOVERNMENT OF THE UNITED STATES OF AMERICA:
james f. byrnes,
Secretary of State of the United States of America,

SUPPLEMENTARY PROTOCOL AMENDING THE CONVENTION FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME, SIGNED AT WASHINGTON ON THE 16TH APRIL, 1945, AS MODIFIED BY THE SUPPLEMENTARY PROTOCOL, SIGNED AT WASHINGTON ON THE 6TH JUNE, 1946.

The Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the United States of America,

Desiring to conclude a further supplementary Protocol amending the Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income, signed at Washington on the 16th April, 1945, as modified by the Supplementary Protocol, signed at Washington on the 6th June, 1946,

Have agreed as follows :

ARTICLE 1

Paragraph (1) of Article XXII of the Convention of the 16th April, 1945, for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income is hereby amended to read as follows :

“(1) Either of the Contracting Parties may, at any time while the present Convention continues in force, by a written notification given to the other Contracting Party through the diplomatic channel, declare its desire that the operation of the present Convention, either in whole or in part or with such modifications as may be found necessary for special application in a particular case, shall extend to all or any of its territories for whose international relations it is responsible, which impose taxes substantially similar in character to those which are the subject of the present Convention. When the other Contracting Party has, by a written communication through the diplomatic channel, signified to the first Contracting Party that such notification is accepted in respect of such territory or territories, the present Convention, in whole or in part or with such modifications as may be found necessary for special application in a particular case, as specified in the notification, shall apply to the territory or territories named in the notification on and after the date or dates specified therein. None of the provisions of the present Convention shall apply to any such territory in the absence of such acceptance in respect of that territory.”

ARTICLE II

This supplementary Protocol, which shall be regarded as an integral part of the said Convention, shall be ratified and the instruments of ratification thereof shall be exchanged in London.

IN WITNESS WHEREOF the undersigned, being authorized thereto by their respective Governments, have signed this supplementary Protocol and have affixed thereto their seals.

DONE in duplicate at Washington this twenty-fifth day of May, 1954.

FOR THE GOVERNMENT OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND :
Roger Makins,
Her Majesty's
Ambassador Extraordinary and Plenipotentiary at Washington.

FOR THE GOVERNMENT OF THE UNITED STATES OF AMERICA :
John Foster Dulles,
Secretary of State of the United States of America.

SUPPLEMENTARY PROTOCOL BETWEEN THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND AND THE UNITED STATES OF AMERICA AMENDING THE CONVENTION FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME, SIGNED AT WASHINGTON ON THE 16TH APRIL 1945, AS MODIFIED BY THE SUPPLEMENTARY PROTOCOL SIGNED AT WASHINGTON ON THE 6TH JUNE 1946 AND BY THE SUPPLEMENTARY PROTOCOL SIGNED AT WASHINGTON ON THE 25TH MAY 1954.

The Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the United States of America,

Desiring to conclude a further supplementary Protocol amending the Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income, signed at Washington on the 16th April 1945, as modified by the supplementary Protocol signed at Washington on the 6th June 1946 and by the supplementary Protocol signed at Washington on the 25th May 1954,

Have agreed as follows :

ARTICLE 1

Paragraphs (1) and (2) of Article VIII of the Convention of the 16th April 1945 for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to taxes on income are hereby amended to read as follows :

“(1) Royalties and other amounts paid as consideration for the use of, or for the privilege of using, copyrights, patents, designs, secret processes and formulae, trade marks and other like property, and derived from sources within the United States by a resident of the United Kingdom who is subject to United Kingdom tax on such royalties or other amounts shall be exempt from United States tax (a) if such resident is not engaged in trade or business in the United States through a permanent establishment situated therein or (b) if such resident is so engaged, the royalties or other amounts are not directly associated with the business carried on through that permanent establishment.

(2) Royalties and other amounts paid as consideration for the use of, or for the privilege of using, copyrights, patents, designs, secret processes and formulae, trade marks, and other like property, and derived from sources within the United Kingdom by a resident of the United States who is subject to United States tax on such royalties or other amounts shall be exempt from United Kingdom tax (a) if such resident is not engaged in trade or business in the United Kingdom through a permanent establishment situated therein or (b) if such resident is so engaged, the royalties or other amounts are not directly associated with the business carried on through that permanent establishment.”

ARTICLE II

Paragraph (1) of Article XIII of the said Convention is hereby amended to read as follows :

“(1) Subject to Sections 901 to 905 of the United States Internal Revenue Code as in effect on the 1st day of January 1956, United Kingdom tax shall be allowed as a credit against United States tax. For this purpose
1. (a) the recipient of a dividend paid by a corporation which is a resident of the United Kingdom shall be deemed to have paid the United Kingdom tax appropriate to such dividend, and
1. (b) the recipient of any royalty or other amount coming within the scope of Article VIII of the present Convention shall be deemed to have paid any United Kingdom tax legally deducted from the royalty or other amount by the person by or through whom any payment thereof is made,

if the recipient of the dividend or royalty or other amount, as the case may be, elects to include in his gross income for the purposes of United States tax the amount of such United Kingdom income tax.”

ARTICLE III

(1) This supplementary Protocol shall be ratified and the instruments of ratification shall be exchanged at London as soon as possible.

(2) This supplementary Protocol shall enter into force upon the exchange of instruments of ratification and shall thereupon have effect—
1. (a) In the United Kingdom:
  1. (1) as respects income tax and surtax for any year of assessment beginning on or after the 6th April 1956;
  1. (ii) as respects profits tax for any chargeable accounting period beginning on or after the 1st April 1956, and for the unexpired portion of any chargeable accounting period current at that date.
1. (b) In the United States:

As respects taxable years beginning on or after the 1st January 1956.

IN WITNESS WHEREOF the undersigned, being authorised thereto by their respective Governments, have signed this supplementary Protocol and have affixed thereto their seals.

Done in duplicate at Washington this nineteenth day of August, 1957.

For the Government of the United Kingdom of Great Britain and Northern Ireland:
(L.S.) Harold Caccia.

For the Government of the United States of America:
(L.S.) John Foster Dulles.

Schedule 2

(Section 2)

1. Application

(a) The provisions of the Convention and Protocols incorporated in Schedule 1 to this Order shall apply as modified below—
1. (1) as if the contracting parties were Saint Lucia and the Government of the United States; and as if the tax concerned in the case of Saint Lucia were Income Tax;
1. (ii) as if references to the date of signature were references to the 3rd day of December, 1958;
1. (iii) as if references to the 6th day of April were references to the 1st day of January.

(b) The extension shall have effect in Saint Lucia as respects tax for the year of assessment next following that in which the last of those measures shall have been taken in the United States and Saint Lucia necessary to give the extension the force of law in the United States and Saint Lucia and for subsequent years of assessment and will have effect in the United States as respects United States tax for the taxable year beginning on or after the 1st day of January in that next following calendar year.

2. Modifications

(a) In Article VI(2) the words “exempt from United Kingdom Surtax” shall be understood for the purposes of this extension as though they read “is not liable to any tax in the territory other than tax imposed with respect to the profits or earnings of the corporation out of which such dividends are paid”.

(b) In Article IX(2) the words “shall be exempt from United Kingdom surtax” shall be understood for the purposes of this extension as though they read “is not liable to tax in the territory at a rate in excess of the rate applicable to a company”.

Income Tax (Double Taxation Relief) (Switzerland) Order – Section 60

(Statutory Instrument 16/1965)

Statutory Instrument 16/1965 .. in force 28 August 1965

ARRANGEMENT OF REGULATIONS

1.	Citation
2.	Declaration
Schedule 1
Schedule 2

INCOME TAX (DOUBLE TAXATION RELIEF) (SWITZERLAND) ORDER – SECTION 60

Commencement [28 August 1965]

Whereas it is provided by section 52(1) of the Income Tax Act, 1947Editor's note: This Act was repealed by the Income Tax Act, 1965 which itself was repealed and replaced by the Income Tax Act. This Order was continued in force by the 1965 Act and section 153 of the Income Tax Act. that if the Governor General by Order declares that arrangements specified in the Order have been made with the Government of any territory outside Saint Lucia with a view to affording relief from double taxation in relation to income tax and any tax of a similar character imposed by the laws of that territory and that it is expedient that those arrangements have effect, the arrangements have effect in relation to income tax despite anything in any enactment;

And Whereas by a Convention dated 30 September 1954 between the Government of the United Kingdom and Northern Ireland and the Swiss Federal Council, arrangements were made among other things for the avoidance of double taxation;

And Whereas provision is made in the said Convention for the extension by means of an exchange of notes between the High Contracting Parties of the said Convention, subject to such modifications and conditions (including conditions as to termination) as may be specified in the exchange of notes, to any territory, for whose foreign relations the United Kingdom is responsible, which imposes taxes substantially similar in character to those which are the subject of the said Convention;

And Whereas by a notification dated 1 January 1961 the said Convention with certain modifications was applied to Saint Lucia.

1. Citation

This Order may be cited as the Income Tax (Double Taxation Relief) (Switzerland) Order.

2. Declaration

It is hereby declared—

(a) that the arrangements specified in Schedule 1 to this Order as modified by the provisions of Schedule 2 to this Order have been made with the Swiss Federal Council;

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

Schedule 1

(Section 2)

CONVENTION BETWEEN THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND AND THE SWISS CONFEDERATION FOR THE AVOIDANCE OF DOUBLE TAXATION WITH RESPECT TO TAXES ON INCOME.

The Government of the United Kingdom of Great Britain and Northern Ireland and the Swiss Federal Council.

Desiring to conclude a Convention for the avoidance of double taxation with respect to taxes on income.

Have appointed for that purpose as their respective Plenipotentiaries:

The Government of the United Kingdom of Great Britain and Northern Ireland:
1. Alfred Douglas Dodds-Parker, Esquire, Parliamentary Under-Secretary of State for Foreign Affairs;
1. The Swiss Federal Council;
1. Monsieur Erwin Bernath, Swiss Charge d'Affaires ad interim in London;

Who, having communicated to one another their full powers, found in good and due form, have agreed as follows:

ARTICLE 1

(1) The taxes which are the subject of the present Convention are—
1. (a) In the United Kingdom:
1. The income tax (including surtax), the profits tax and the excess profits levy (hereinafter referred to as “United Kingdom tax”);
1. (b) In Switzerland:
1. The federal, cantonal and communal taxes on income (total income, earned income, income from capital, industrial and commercial profits, &c.), but not including the Federal coupon tax except where expressly mentioned (hereinafter referred to as “Swiss tax”).

(2) The present Convention shall also apply to any other taxes of a substantially similar character imposed in the United Kingdom or Switzerland subsequently to the date of signature of the present Convention.

ARTICLE II

(1) In the present Convention, unless the context otherwise requires—
1. (a) The term “United Kingdom” means Great Britain and Northern Ireland, excluding the Channel Islands and the Isle of Man;
1. (b) The term “Switzerland” means the Swiss Confederation.
1. (c) The terms “one of the territories” and “the other territory” mean the United Kingdom or Switzerland, as the context requires;
1. (d) The term “tax” means United Kingdom tax or Swiss tax, as the context requires;
1. (e) The term “person” includes any individual, company, unincorporated body of persons and any other entity with or without juridical personality;
1. (f) The term “company” means in relation to the United Kingdom any body corporate, and in relation to Switzerland any entity with juridical personality;
1. (g) The term “resident of the United Kingdom” means:
  1. (i) any company or partnership whose business is managed and controlled in the United Kingdom;
  1. (ii) any other person who is resident in the United Kingdom for the purposes of United Kingdom tax and not resident (by reason of domicile or sojourn) in Switzerland for the purposes of Swiss tax;
1. (h) The term “resident of Switzerland” means—
  1. (i) any company or partnership (“société simple,” “société‚ en nom collectif” or “société‚ en commandite”) created or organised under Swiss law, if its business is not managed and controlled in the United Kingdom;
  1. (ii) any other person who is resident (by reason of domicile or sojourn) in Switzerland for the purposes of Swiss tax and not resident in the United Kingdom for the purposes of United Kingdom tax;
1. (i) The terms “resident of one of the territories” and “resident of the other territory” mean a resident of the United Kingdom or a resident of Switzerland, as the context requires;
1. (j) the terms “United Kingdom enterprise” and “Swiss enterprise” mean respectively an industrial or commercial enterprise or undertaking carried on by a resident of the United Kingdom and an industrial or commercial enterprise or undertaking carried on by a resident of Switzerland, and the terms “enterprise of one of the territories” and “enterprise of the other territory” mean a United Kingdom enterprise or a Swiss enterprise, as the context requires;
1. (k) The term “permanent establishment” means a branch, management, office, factory, workshop or other fixed place of business, and a farm, mine, quarry or other place of natural resources subject to exploitation. It also includes a place where building construction is carried on by contract for a period of at least one year, but does not include an agency unless the agent has and habitually exercises a general authority to negotiate and conclude contracts on behalf of an enterprise of one of the territories. In this connexion—
  1. (i) An enterprise of one of the territories shall not be deemed to have a permanent establishment in the other territory merely because it carries on business dealings in that other territory through a bona fide broker, general commission agent or other independent agent acting in the ordinary course of his business as such;
  1. (ii) The fact that an enterprise of one of the territories maintains in the other territory a fixed place of business exclusively for the purchase of goods or merchandise shall not of itself constitute that fixed place of business a permanent establishment of the enterprise;
  1. (iii) The fact that an enterprise of one of the territories has a subsidiary company which is a resident of the other territory or which is engaged in trade or business in that other territory (whether through a permanent establishment or otherwise) shall not of itself constitute that subsidiary company a permanent establishment of the enterprise of the former territory;
1. (l) The term “industrial or commercial profits” includes manufacturing, mercantile, mining, farming, financial and insurance profits, and rents and royalties in respect of cinematograph films, but does not include income in the form of dividends, interest or royalties (other than cinematograph royalties) except any such income which, under the laws of one of the territories and in accordance with Article III of the present Convention, is attributable to a permanent establishment situated therein;
1. (m) The term “competent authority” means, in the case of the United Kingdom, the Commissioners of Inland Revenue or their authorised representative; in the case of Switzerland, the Director of the Federal Tax Administration or his authorised representative; and in the case of any territory to which the present Convention is extended under Article XXI, the competent authority for the administration in such territory of the taxes to which the Convention applies.

(2) Where the present Convention provides that income from a source within Switzerland shall be exempt from, or entitled to a reduced rate of, tax in Switzerland if (with or without other conditions) it is subject to tax in the United Kingdom, and under the law in force in the United Kingdom the said income is subject to tax by reference to the amount thereof which is remitted to or received in the United Kingdom and not by reference to the full amount thereof, then the exemption or reduction in rate to be allowed under the Convention in Switzerland shall apply only to so much of the income as is remitted to or received in the United Kingdom.

(3) Where under any provision of the present Convention a partnership is entitled to exemption from United Kingdom tax as a resident of Switzerland on any income, such a provision shall not be construed as restricting the right of the United Kingdom to charge any member of the partnership, being a person who is resident in the United Kingdom for the purposes of United Kingdom tax (whether or not he is also resident in Switzerland for the purposes of Swiss tax), to tax on his share of the income of the partnership; but any such income shall be deemed for the purposes of Article XV to be income from sources within Switzerland.

(4) Where under any provision of the present Convention an estate of a deceased person is entitled to exemption from United Kingdom tax as a resident of Switzerland on any income, such a provision shall not be construed as requiring the United Kingdom to grant exemption from United Kingdom tax in respect of such part of such income as goes to any heir of such estate who is not resident in Switzerland for the purposes of Swiss tax and whose share of such income is not subject to Swiss tax either in his hands or in the hands of the estate.

(5) In the application of the provisions of the present Convention by either Contracting Party any term not otherwise defined shall, unless the context otherwise requires, have the meaning which it has under the laws in force in the territory of that Party relating to the taxes which are the subject of the Convention.

ARTICLE III

(1) The industrial or commercial profits of a United Kingdom enterprise shall not be subject to Swiss tax unless the enterprise is engaged in trade or business in Switzerland through a permanent establishment situated therein. If it is so engaged, tax may be imposed on those profits by Switzerland, but only on so much of them as is attributable to that permanent establishment.

(2) The industrial or commercial profits of a Swiss enterprise shall not be subject to United Kingdom tax unless the enterprise is engaged in trade or business in the United Kingdom through a permanent establishment situated therein. If it is so engaged, tax may be imposed on those profits by the United Kingdom, but only on so much of them as is attributable to that permanent establishment.

(3) Where an enterprise of one of the territories is engaged in trade or business in the other territory through a permanent establishment situated therein, there shall be attributed to that permanent establishment the industrial or commercial profits which it might be expected to derive if it were an independent enterprise engaged in the same or similar activities under the same or similar conditions and dealing at arm's length with the enterprise of which it is a permanent establishment.

(4) Where an enterprise of one of the territories derives profits, under contracts concluded in that territory, from sales of goods or merchandise stocked in a warehouse in the other territory, those profits shall not be attributed to a permanent establishment of the enterprise in that other territory, notwithstanding that the offers of purchase have been obtained by an agent in that other territory and transmitted by him to the enterprise for acceptance.

(5) No portion of any profits arising to an enterprise of one of the territories shall be attributed to a permanent establishment situated in the other territory by reason of the mere purchase of goods or merchandise within that other territory by the enterprise.

(6) In the determination of the industrial or commercial profits of a permanent establishment there shall be allowed as deductions all expenses which are reasonably applicable to the permanent establishment, including executive and general administrative expenses so applicable, whether incurred in the territory in which the permanent establishment is situated or elsewhere.

ARTICLE IV

Where—
1. (a) an enterprise of one of the territories participates directly in the management, control or capital of an enterprise of the other territory, or
1. (b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of one of the territories and an enterprise of the other territory.

ARTICLE V

Notwithstanding the provisions of Articles III and IV, profits which a resident of one of the territories derives from operating ships or aircraft, including profits of that resident from the sale of tickets for passages by such ships or aircraft, shall be exempt from tax in the other territory.

ARTICLE VI

(1) Dividends (other than dividends which, under the laws of the United Kingdom and in accordance with Article III of this Convention, are attributable to a permanent establishment situated in the United Kingdom) paid by a company which is a resident of the United Kingdom to a resident of Switzerland who is subject to Swiss tax in respect thereof shall be exempt from United Kingdom surtax.

(2) The industrial and commercial profits of a Swiss enterprise engaged in trade or business through a permanent establishment in the United Kingdom shall, so long as undistributed profits of United Kingdom enterprises are effectively charged to United Kingdom profits tax at a lower rate than distributed profits of such enterprises, be charged to United Kingdom profits tax only at that lower rate.

(3) Where not less than 50% of the entire voting power of a company which is a resident of the United Kingdom is controlled, directly or indirectly, by a company which is a resident of Switzerland, the distributions by the former company to the latter company, and to any other company which is a resident of Switzerland and which beneficially owns not less than 10%. of the entire share capital of the company paying the dividends, shall be left out of account in computing United Kingdom profits tax effectively chargeable on that company at the rate appropriate to distributed profits.

(4)
1. (a) The Swiss anticipatory tax may be charged in respect of dividends paid by any company created under Swiss law to a resident of the United Kingdom, but, in the case of any such resident who is subject to United Kingdom tax in respect thereof, the rate of anticipatory tax shall be reduced in accordance with the following provisions of this paragraph (unless the dividends are, under the laws of Switzerland and in accordance with Article III of this Convention, attributable to a permanent establishment situated in Switzerland).
1. (b) If that resident is an individual whose effective rate of United Kingdom tax does not exceed 5%., the anticipatory tax shall not be charged.
1. (c) If that resident is an individual whose effective rate of United Kingdom tax exceeds 5%., the anticipatory tax shall be charged only at the rate which, when added to the rate of Federal coupon tax, equals that effective rate.
1. (d) If that resident is a company which controls, directly or indirectly not less than 95% of the entire voting power of the company paying the dividends, the anticipatory tax shall be reduced by an amount equal to 20% of the dividend.
1. (e) If that resident is a company which controls, directly or indirectly less than 95% but not less than 50%. of the entire voting power of the company paying the dividends, the anticipatory tax shall be reduced by an amount equal to 10%. of the dividend.
1. (f) If that resident is a company which beneficially owns not less than 10%. of the entire share capital of the company paying the dividends, and that provisions of either subparagraph (d) or subparagraph (e) of this paragraph apply to some part of the dividends paid by the latter company, the anticipatory tax shall be reduced by an amount equal to 10%. of the dividend.

(5) If at any time distributed profits of companies become chargeable to United Kingdom profits tax at a rate other than 20%. above the rate at which undistributed profits are effectively chargeable to that tax, the competent authorities of the 2 Contracting Parties may consult together in order to determine whether it is necessary for this reason to amend subparagraphs (d), (e) and (f) of the preceding paragraph. After such consultation has taken place either of the Contracting Parties may give to the other Contracting Party through the diplomatic channel written notice of termination of the provisions of paragraph (3) and of subparagraphs (d), (e) and (f) of paragraph (4) of this Article, and, in such event, those provisions shall cease to be effective from the date on which the relevant change in the rates of United Kingdom profits tax took effect.

(6) Subject to the provisions of subparagraph (a) of paragraph (4) of this Article, where a company which is a resident of one of the territories derives profits or income from sources within the other territory, there shall not be imposed in that other territory any form of taxation on dividends paid by the company to persons not resident in that other territory, or any tax in the nature of an undistributed profits tax on undistributed profits of the company, whether or not those dividends or undistributed profits represent, in whole or in part, profits or income so derived.

ARTICLE VII

(1) Any interest or royalty derived from sources within one of the territories by a resident of the other territory, who is subject to tax in that other territory in respect thereof, shall be exempt from tax in that first territory.

(2) In this Article—
1. (a) The term “interest” means interest on bonds, securities, notes, debentures or on any other form of indebtedness (including mortgages or bonds secured on real property);
1. (b) The term “royalty” means any royalty or other amount paid as consideration for the right to use any copyright, artistic or scientific work, patent, model, design, secret process or formula, trademark, or other like property or right (including rentals and like payments for the use of industrial or commercial machinery or plant or scientific apparatus), but does not include any royalty or other amount paid in respect of the operation of mines, quarries or other natural resources.

(3) Any capital sum derived from sources within one of the territories from the sale of property or rights mentioned in subparagraph (b) of paragraph (2) of this Article by a resident of the other territory shall be exempt from tax in the first territory.

(4) Where there is a special relationship between debtor and creditor or both debtor and creditor have a special relationship with a third person or persons, and in consequence the amount paid is greater than would have been agreed upon if debtor and creditor had been at arm's length, the exemption provided by this Article shall not apply to the excess.

(5) Any interest or royalty exempted from United Kingdom tax by this Article shall be allowed as a deduction for profits tax and excess profits levy purposes from the profits or income of the person paying the interest or royalty, whatever the relationship between that person and the person receiving the interest or royalty may be.

(6) The exemptions from tax in one of the territories provided for in this Article shall not apply to interest, royalties or capital sums which, under the laws of that territory and in accordance with Article III of this Convention, are attributable to a permanent establishment situated therein.

ARTICLE VIII

(1) A resident of one of the territories shall be exempt in the other territory from any tax on gains from the sale, transfer or exchange of capital assets (other than gains which, under the laws of that other territory and in accordance with Article III of this Convention, are attributable to a permanent establishment situated therein).

(2) In this Article the term “capital assets” means any movable property, whether corporeal or incorporeal.

ARTICLE IX

(1) Income derived from real property situated in one of the territories by a resident of the other territory shall be subject to tax in accordance with the laws of the first-mentioned territory. Where the income is also subject to tax in the other territory, relief from double taxation shall be given in accordance with the provisions of Article XV.

(2) In this Article, the term “income from real property” means income of whatever nature derived from real property, including gains derived from the sale or exchange of such property, and it also includes royalties in respect of the operation of mines, quarries or other natural resources. It does not however include interest from mortgages or bonds secured on such property.

ARTICLE X

(1) Remuneration, including pensions, paid by, or out of funds created by, the Government of the United Kingdom to an individual in respect of services rendered to that Government in the discharge of governmental functions shall be exempt from Swiss tax: provided that the exemption shall not apply to remuneration, other than a pension, paid to a Swiss citizen who is not also a British subject.

(2) Remuneration, including pensions, paid by, or out of funds created by, the Swiss Confederation or by any Swiss canton to an individual in respect of services rendered to Switzerland in the discharge of governmental functions shall be exempt from United Kingdom tax: provided that the exemption shall not apply to remuneration, other than a pension, paid to a British subject who is not also a Swiss citizen.

(3) The provisions of paragraphs (1) and (2) of this Article shall not apply to payments in respect of services rendered in connection with any trade or business carried on by either Contracting Party or by any Swiss canton for purposes of profit.

(4) The provisions of this Convention shall not be construed as denying or affecting in any manner the right of diplomatic and consular officers to other or additional exemptions now enjoyed or which may hereafter be granted to them.

ARTICLE XI

(1) An individual who is a resident of the United Kingdom shall be exempt from Swiss tax on profits or remuneration in respect of personal (including professional) services performed within Switzerland in any year of assessment if—
1. (a) he is present within Switzerland for a period or periods not exceeding in the aggregate 183 days during that year, and
1. (b)
  1. (i) in the case of a directorship or employment, the services are performed for or on behalf of a resident of the United Kingdom;
  1. (ii) in other cases, he has no office or other fixed place of business in Switzerland, and
1. (c) the profits or remuneration are subject to United Kingdom tax.

(2) An individual who is a resident of Switzerland shall be exempt from United Kingdom tax on profits or remuneration in respect of personal (including professional) services performed within the United Kingdom in any year of assessment if—
1. (a) he is present within the United Kingdom for a period or periods not exceeding in the aggregate 183 days during that year, and
1. (b)
  1. (i) in the case of a directorship or employment, the services are performed for or on behalf of a resident of Switzerland;
  1. (ii) in other cases, he has no office or other fixed place of business in the United Kingdom; and
1. (c) the profits or remuneration are subject to Swiss tax.

(3) The provisions of this Article shall not apply to the profits or remuneration of public entertainers such as stage, motion picture, radio or television artists, musicians and athletes.

ARTICLE XII

(1) Any pension (other than a pension of the kind referred to in Article X) and any annuity, derived from sources within one of the territories by an individual who is a resident of the other territory and subject to tax in that other territory in respect thereof, shall be exempt from tax in the first territory.

(2) In this Article—
1. (a) The term “pension” means periodic payments made in consideration of past services or by way of compensation for injuries received;
1. (b) The term “annuity” means a stated sum payable periodically at stated times, during life or during a specified or ascertainable period of time, under an obligation to make the payments in return for adequate and full consideration in money or money's worth.

ARTICLE XIII

(1) A professor or teacher from one of the territories, who receives remuneration for teaching, during a period of temporary residence not exceeding 2 years, at a university, college, school or other educational institution in the other territory, shall be exempt from tax in that other territory in respect of that remuneration.

(2) A student or business apprentice from one of the territories, who is receiving full-time education or training in the other territory, shall be exempt from tax in that other territory on payments made to him by persons outside that other territory for the purposes of his maintenance, education or training.

ARTICLE XIV

(1) Individuals who are residents of Switzerland shall be entitled to the same personal allowances, reliefs and reductions for the purposes of United Kingdom tax as British subjects not resident in the United Kingdom.

(2) Individuals who are residents of the United Kingdom shall be entitled to the same personal allowances, reliefs and reductions for the purposes of Swiss tax as Swiss nationals resident in the United Kingdom.

ARTICLE XV

(1) The laws of the Contracting Parties shall continue to govern the taxation of income arising in either of the territories, except where express provision to the contrary is made in the present Convention. Where income is subject to tax in both territories, relief from double taxation shall be given in accordance with the following paragraphs of this Article.

(2) Subject to the provisions of the law of the United Kingdom regarding the allowance as a credit against United Kingdom tax of tax payable in a territory outside the United Kingdom, Swiss tax payable, whether directly or by deduction in respect of income from sources within Switzerland shall be allowed as a credit against the United Kingdom tax payable in respect of that income. Where such income is a dividend paid by a company which is a resident of Switzerland to a company which controls, directly or indirectly, not less than 50%, of the if entire voting power of the former company, the credit shall take into account (in addition to any Swiss tax appropriate to the dividend) the Swiss tax payable by the former company in respect of its profits. For the purpose of this paragraph, the term “Swiss tax” shall include the Federal coupon tax, but shall not include the communal taxes.

(3) Income (other than dividends) from sources within the United Kingdom which under the laws of the United Kingdom and in accordance with this Convention is subject to tax in the United Kingdom either directly or by deduction shall be exempt from Swiss tax.

(4) In the case of a person (other than a company or partnership) who is resident in the United Kingdom for the purposes of United Kingdom tax an also resident (by reason of domicile or sojourn) in Switzerland for the purposes of Swiss tax, the provisions of paragraph (2) of this Article shall apply in relation to income which that person derives from sources within Switzerland, and the provisions of paragraph (3) of this Article shall apply in relation to income which that person derives from sources within the United Kingdom. If such person derives income from sources outside both the United Kingdom and Switzerland, tax may be imposed on that income in both the territories (subject to the laws in force in the territories and to any Convention which may exist between either of the Contracting Parties and the territory from which the income is derived) but the Swiss tax on so much of that income as is subjected to tax in both the territories shall be limited to ¹/₂ of the tax on such income, and the United Kingdom tax on that income shall be reduced by a credit, in accordance with paragraph (2) of this Article, for the Swiss tax so computed.

(5) For the purposes of this Article, profits or remuneration for personal (including professional) services performed in one of the territories shall be deemed to be income from sources within that territory, except that the remuneration of a director of a company shall be deemed to be income from sources within the territory in which the company is resident, and the services of an individual whose services are wholly or mainly performed in ships or aircraft operated by a resident of one of the territories shall be deemed to be performed in that territory.

ARTICLE XVI

(1) Where it is provided in this Convention that relief from tax in respect of any kind of income shall be allowed in the territory from which such income is derived, that provision shall not be construed as requiring that income to be paid without deduction of tax at source at the full rate. Where tax has been deducted at source from such income the taxation authorities of the territory in which relief from tax is required to be given shall, when the taxpayer in receipt of the income shows to their satisfaction and within the time limits prescribed in that territory that he is entitled to the relief, arrange for the appropriate repayment of tax.

(2) Where any income is exempted from tax by any provision of this Convention, it may nevertheless be taken into account in computing the tax on other income or in determining the rate of such tax.

(3) For the purpose of calculating the reliefs due under Articles VI and XIV, the income of a partnership shall be regarded as that of its individual members.

ARTICLE XVII

(1) The provisions of the present Convention shall not be construed as restricting in any manner any exemption, deduction, credit or other allowance now or hereafter accorded by the laws in force in the territory of one of the Contracting Parties in the determination of the tax imposed in such territory.

(2) The provisions of the present Convention shall not be construed as derogating from any right or privilege conferred upon taxpayers by the Agreement of the 17th October, 1931, between the Government of the United Kingdom and the Swiss Federal Council for reciprocal exemption from taxation on profits or gains arising through an agency.

ARTICLE XVIII

(1) The nationals of one Contracting Party shall not be subjected in the territory of the other Contracting Party to any taxation on any requirement connected therewith which is either, higher or more burdensome than the taxation and connected requirements to which the nationals of the latter Party are or may be subjected in similar circumstances.

(2) The enterprises of one of the territories, whether carried on by a company, a body of persons or by individuals alone or in partnership, shall not be subjected in the other territory, in respect of income, profits or capital attributable to their permanent establishments in that other territory, to any taxation which is other, higher or more burdensome than the taxation to which the enterprises of that other territory similarly carried on are or may be subjected in respect of the like income, profits or capital.

(3) The income, profits, and capital of an enterprise of one of the territories, the capital of which is wholly or partly owned or controlled, directly or indirectly, by a resident or residents of the other territory, shall not be subjected in the first territory to any taxation which is other, higher or more burdensome than the taxation to which other like enterprises of that first territory are or may be subjected in similar circumstances in respect of the like income, profits and capital.

(4) Nothing in paragraph (1) or paragraph (2) of this Article shall be construed as obliging one Contracting Party to grant nationals of the other Contracting Party who are not resident in the territory of the former Party the same personal allowance, reliefs and reductions for tax purposes as are granted to its own nationals.

(5) In this Article the term “nationals” means—
1. (a) in relation to Switzerland, all Swiss citizens wherever residing and all entities with or without juridical personality created under Swiss laws;
1. (b) in relation to the United Kingdom, all British subjects and British protected persons—
  1. (i) residing in the United Kingdom or any territory to which the present Convention is extended under Article XXI, or
  1. (ii) deriving their status as such from connection with the United Kingdom or any territory to which the present Convention is extended under Article XXI, and all legal persons, partnerships, associations and other entities deriving their status as such from the law in force in the United Kingdom or any territory to which the Convention is extended under Article XXI.

(6) In this Article the term “taxation” means taxes of every kind and description levied on behalf of any authority whatsoever.

ARTICLE XIX

(1) Where a taxpayer shows to the satisfaction of the competent authority of the Contracting Party of which he is a national or in whose territory he a resident that he has not received the treatment in the other territory to which he is entitled under any provision of this Convention, that competent authority shall consult with the competent authority of the other Party with a view to the avoidance of the double taxation in question.

(2) The competent authorities of the 2 Contracting Parties may communicate with each other directly for the purpose of giving effect to the provisions of this Convention (and in particular the provisions of Articles III and IV) and for resolving any difficulty or doubt as to the application or interpretation of the Convention.

ARTICLE XX

(1) The competent authorities of the Contracting Parties shall exchange such information (being information which is at their disposal under their respective taxation laws in the normal course of administration) as is necessary for carrying out the provisions of the present Convention in relation to the taxes which are the subject of the Convention. Any information so exchanged shall be treated as secret and shall not be disclosed to any persons other than those concerned with the assessment and collection of the taxes which are the subject of the Convention. No information as aforesaid shall be exchanged which would disclose any trade, business, industrial or professional secret or trade process.

(2) In no case shall the provisions of this Article be construed as imposing upon either of the Contracting Parties the obligation to carry out administrative measures at variance with the regulations and practice of either Contracting Party or which would be contrary to its sovereignty, security or public policy or to supply particulars which are not procurable under its own legislation or that of the Party making application.

ARTICLE XXI

(1) The present Convention may be extended, either in its entirety or with modifications, to any territory for whose international relations the United Kingdom is responsible and which imposes taxes substantially similar in character to those which are the subject of the Convention, and any such extension shall take effect from such date and subject to such modifications and conditions (including conditions as to termination) as may be specified and agreed between the Contracting Parties in notes to be exchanged for this purpose.

(2) The termination in respect of the United Kingdom or Switzerland of the present Convention under Article XXIV shall, unless otherwise expressly agreed by the Contracting Parties, terminate the application of the Convention to any territory to which it has been extended under this Article.

ARTICLE XXII

(1) The present Convention shall be ratified and the instruments of ratification shall be exchanged at Berne as soon as possible.

(2) The present Convention shall enter into force upon the exchange of ratifications.

ARTICLE XXIII

(1) Upon the entry into force of the present Convention in accordance with Article XXII, the provisions of the Convention shall have effect—
1. (a) In the United Kingdom—
1. as respects income tax (including surtax) for any year of assessment beginning on or after the 6th April, 1953; as respects profits tax and excess profits levy in respect of the following profits—
  1. (i) profits by reference to which income tax is, or but for the present Convention would be chargeable for any year of assessment beginning on or after the 6th April, 1953;
  1. (ii) other profits being profits by reference to which income tax is not chargeable, but which arise in any chargeable accounting period beginning on or after the 1st April, 1953, or are attributable to so much of any chargeable accounting period falling partly before and partly after that date as falls after that date.
1. (b) In Switzerland—for any taxable year beginning on or after the 1st January 1953.

(2) The exemption from tax provided in Article V shall have effect for any year of assessment beginning on or after the 6th April, 1946.

ARTICLE XXIV

The present Convention shall continue in effect indefinitely but either Contracting Party may, on or before the 30th June in any calendar year not earlier than the year 1957, give to the other Contracting Party, through the diplomatic channel, written notice of termination and, in such event, the Convention shall cease to be effective—
1. (a) In the United Kingdom—
1. as respects income tax (including surtax) for any year of assessment beginning on or after the 6th April in the calendar year next following that in which the notice is given; as respects profits tax in respect of the following profits—
  1. (i) profits by reference to which income tax is chargeable for any year of assessment beginning on or after the 6th April in the calendar year next following that in which the notice is given;
  1. (ii) other profits being profits by reference to which income tax is not chargeable, but which arise in any chargeable accounting period beginning on or after the 1st April in the calendar year next following that in which the notice is given or are attributable to so much of any chargeable accounting period falling partly before and partly after that date as falls after that date;
1. (b) In Switzerland—

for any taxable year beginning on or after 1 January of the calendar year next following that in which the notice is given.

IN WITNESS WHEREOF the above-mentioned Plenipotentiaries have signed the present Convention and have affixed thereto their seals.

Done in duplicate at London, the 30th day of September, one thousand nine hundred and fifty-four, in the English and French languages, both texts being equally authoritative.
(Sgd.) (L.S.) DOUGLAS DODDS-PARKER,
(Sgd.) (L.S.) E. BERNATH.

Schedule 2

(Section 2)

APPLICATION

1. The said Convention as modified by the present Annex shall apply in the case of Saint Lucia—
1. (a) as if the Contracting Parties were the Swiss Federal Council and the Government of Saint Lucia ;
1. (b) as if the taxes concerned in the case of Saint Lucia were income tax;
1. (c) as if references to “the date of signature of the present Convention” were references to the date of the Exchange of Notes to which the present Annex is appended.

2. When the last of those measures shall have been taken in Switzerland and in Saint Lucia necessary to give the present extension the force of law in Switzerland and in Saint Lucia respectively, the present extension shall have effect—
1. (a) in Switzerland : for any taxable year beginning on or after the first day of January, 1961; and
1. (b) in Saint Lucia : as respects taxes charged for the year of assessment or year of income beginning on the 1st January 1961, and for subsequent years, years of assessment or years of income.

3. The Swiss Federal Council shall inform the Government of the United Kingdom in writing through the diplomatic channel when the last of the measures necessary, as indicated in paragraph (2) have been taken in Switzerland. The Government of the United Kingdom shall inform the Swiss Federal Council in writing through the diplomatic channel when the last of the measures necessary, as indicated in paragraph (2), have been taken in Saint Lucia.

(4) The present extension shall continue in effect indefinitely but either the Government of the United Kingdom or the Swiss Federal Council may, on or before the 30th of June in any calendar year not earlier than the year 1966 give to the other through the diplomatic channel written notice of termination which may apply to Saint Lucia and in such event the present extension shall cease to have effect,
1. (a) in Switzerland : for any taxable year beginning on or after the first day of January of the calendar year next following that in which the notice is given ; and
1. (b) in Saint Lucia : as respects taxes charged for any year, year of assessment or year of income beginning on or after 1st January, 1961 in the calendar year next following that in which the notice is given.

MODIFICATIONS

The said Convention shall, for the purposes of the extension to Saint Lucia, apply with the following modifications—
1. (a) For the purposes of the extension of the Convention to Saint Lucia, Article VI shall be deleted ;
1. (b) for the purposes of the extension of the Convention to Saint Lucia, references to interest in Article VII of the Convention shall be deemed to be deleted, and in Article XV (3) the words in brackets shall be deemed to be replaced by the words “other than dividends and interest”;

Income Tax Forms Rules – Section 151

(Statutory Instrument 42/1949)

Statutory Instrument 42/1949 .. in force 30 July 1949

ARRANGEMENT OF REGULATIONS

1.	Citation
2.	Forms
3.	Forms may be obtained at Treasury
Schedule

INCOME TAX FORMS RULES – SECTION 151

Commencement [30 July 1949]

1. Citation

These Rules may be cited as the Income Tax (Forms) Rules.

2. Forms

The Income Tax forms appearing in the Schedule are the forms under the Income Tax Act, 1947.Editor's note: This Act was repealed by the Income Tax Act, 1965 which itself was repealed and replaced by the Income Tax Act. These Rules were continued in force by the 1965 Act and section 153 of the Income Tax Act.

3. Forms may be obtained at Treasury

The said forms with the exception of Forms 5 and 7 may be obtained at the Treasury in Castries or at any district revenue office in other parts of Saint Lucia.

Schedule

(Section 2)

No. of Form.		Description.
1.	Notice and return under section 37 of the Act (Return — General Form).
2.	Notice and return under section 38 of the Act (Employers).
3.	Notice and list to be delivered for the purposes of sections 30, 31, 32 of the Act (Agents, etc., of non-residents).
4.	Notice and list to be delivered for the purposes of sections 29, 31, 32 of the Act (Trustees, Executors, etc.).
5.	Notice of assessment, section 47 of the Act.
6.	Account to be rendered under section 36 of the Act by persons paying mortgage or debenture interest to persons not resident in Saint Lucia.
7.	Declaration required by section 4 of the Act (Declaration of Official Secrecy).

Income Tax Appeals Against Assessments Rules – Section 151Editor's note: These Rules were continued under the Income Tax Act, 1965. That Act was repealed and replaced by the Income Tax Act. However, the rules continue in force under section 153.

(Statutory Instrument 14/1924)

Statutory Instrument 14/1924

1. In the notice in writing to be given by the appellant to the Commissioner the grounds, reasons, or particulars of the appeal shall be clearly stated and the said notice shall be served on the Commissioner.

Such notice may be served through the Sheriff's Office and if so served, the return of service of the said notice on the Commissioner shall be made on a duplicate or copy of the notice to be delivered in the Sheriff's Office by the appellant at the time of delivering the notice in writing for service.

If the notice in writing is not served through the Sheriff's Office an affidavit by the person serving such notice shall be similarly made on the duplicate or copy of such notice.

2. The appellant shall before the expiration of the third day computing from the day of service of the notice referred to in rule 1 file in the Registry of the High Court (a) an application to the judge in chambers to fix a day for the hearing of the appeal and (b) the duplicate or copy of the notice with the return of service or affidavit required by rule 1.

3. A copy of the order fixing the day of the hearing of the appeal may be served on the Commissioner through the sheriff's office and if so served the return of service shall be filed by the appellant in the Registry before the day fixed for the hearing of the appeal.

If the copy of the order is not served through the sheriff's office an affidavit by the person serving such copy shall be similarly filed as required by the preceding paragraph.

4. The proceedings in the appeal shall be intituled.

“In the eastern caribbean Supreme Court (Saint Lucia).

(In Chambers).”

In the matter of the Income Tax Act and of an appeal against assessment by (state name of Appellant),

Date of the Commissioner's refusal to amend assessment ............................”

(state day with month and year).

(A short heading or description of the proceeding should follow — e.g.

“APPLICATION TO FIX DATE FOR HEARING OF APPEAL” or as the case may be).

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Schedule 9

1. Short title and application

3. Comptroller of Inland Revenue