S.I. No. 143/1975 - Double Taxation Relief (Taxes on Income) (United Kingdom) Order, 1975.

S.I. No. 143 of 1975.

DOUBLE TAXATION RELIEF (TAXES ON INCOME) (UNITED KINGDOM) ORDER, 1975.

WHEREAS it is enacted by section 361 (1) of the Income Tax Act, 1967 (No. 6 of 1967), that if the Government by order declare that arrangements specified in the order have been made with the government of any territory outside the State in relation to affording relief from double taxation in respect of income tax or corporation profits tax and any taxes of a similar character, imposed by the laws of the State or by the laws of that territory, and that it is expedient that those arrangements should have the force of law, the arrangements shall, notwithstanding anything in any enactment, have the force of law:

AND WHEREAS it is further enacted by section 361 (6) of that Act that where such an order is proposed to be made, a draft thereof shall be laid before Dáil Éireann and the order shall not be made until a resolution approving of the draft has been passed by Dáil Éireann:

AND WHEREAS a draft of this Order has been laid before Dáil Éireann and a resolution approving of the draft has been passed by Dáil Éireann:

NOW, the Government, in exercise of the powers conferred on them by section 361 of the Income Tax Act, 1967 (No. 6 of 1967), hereby order as follows:

1. This Order may be cited as the Double Taxation Relief (Taxes on Income) (United Kingdom) Order, 1975.

2. It is hereby declared—

( a ) that the arrangements specified in the Agreement set out in the Schedule to this Order have been made with the Government of the United Kingdom in respect of Double Income Tax, and

( b ) that it is expedient that those arrangements should have the force of law.

SCHEDULE

AGREEMENT

between

THE GOVERNMENT OF IRELAND

and

THE GOVERNMENT OF THE UNITED KINGDOM

with respect to

CERTAIN EXEMPTIONS FROM TAX

The Government of Ireland and the Government of the United Kingdom;

With a view to extending for a further year the arrangements concerning dividends provided by the Agreement made between them on 2 May 1973 which amended certain provisions of the Agreement made on 14 April 1926 between the Government of the Irish Free State and the British Government in respect of Double Income Tax;

Have agreed as follows:

ARTICLE 1

Notwithstanding the provisions of Article 4 of the Agreement made on 2 May 1973 the amendments made by paragraph (2) of Article 1 and Article 2 of that Agreement to paragraphs (a) and (b) of Article 1 of the Agreement made on 14 April 1926 shall have effect as respects dividends paid on or after 6 April 1975 and not later than 5 April 1976.

ARTICLE 2

This Agreement shall enter into force on the exchange of Notes confirming that the necessary steps have been taken to give it the force of law in Ireland and the United Kingdom.

In witness whereof the undersigned, duly authorised thereto by their respective Governments, have signed this Agreement.

DONE in two originals at London this third day of June, 1975.

For the Government of Ireland:

Donal O'Sullivan.

For the Government of the United Kingdom:

Roy Hattersley.

GIVEN under the Official Seal of the Government this First day of

July, 1975.

LIAM MAC COSGAIR,

Taoiseach.

EXPLANATORY NOTE.

This Order gives the force of law to the Agreement with the United Kingdom as set out in the Schedule.

The Agreement extends for a further year the provisions of the Agreement made between Ireland and the United Kingdom on 2 May, 1973, so far as they relate to the taxation of dividends.

The 1973 Agreement secured that an individual who was resident in the State and not resident in the United Kingdom and who received a dividend from a United Kingdom company would be entitled to payment of the tax credit in respect of the dividend to which an individual resident in the United Kingdom would have been entitled if he had received that dividend. It also gave the tax credit to a company resident in the State provided it did not control 10 per cent or more of the voting power in the paying company.

A person who was resident in the United Kingdom and not resident in the State and who received a dividend from an Irish company continued to be entitled to repayment of the Irish income tax deducted from the dividend except that the repayment was restricted by up to 5 per cent of the gross dividend where the recipient was a company controlling 10 per cent or more of the voting power in the paying company.

The provisions in the 1973 Agreement relating to dividends operated for the two-year period ended on 5 April, 1975. The new Agreement extends the period until 5 April, 1976.