previous
next

Appendix I. GREAT BRITAIN.

Clause 16 of Finance Bill, 1930.

16. — (1) Subject to the Provisions of this section if His Majesty in Council is pleased to declare:

  • (a) That any profits or gains from the sale of goods arising directly or indirectly to a person resident in any foreign State or in any part of His Majesty's dominions outside the United Kingdom through an agency in the United Kingdom or to a person resident in the United Kingdom through an agency in any foreign State or in any part of His Majesty's dominions outside the United Kingdom are chargeable both to United Kingdom income-tax and to income-tax payable under the law in force in that foreign State or that part of His Majesty's dominions; and
  • (b) That arrangements as specified in the declaration have been made with the Government concerned with a view to the granting of relief from such double taxation,

then unless and until the declaration is revoked by His Majesty in Council, the arrangements specified therein shall, so far as they relate to the relief to be granted from United Kingdom income-tax, have effect as if enacted in this Act, but only if and so long as the arrangements, so far as they relate to the relief to be granted from the income-tax payable in the foreign State or in the part of His Majesty's dominions, have the effect of law in the foreign State or the part of His Majesty's dominions.

Provided that no arrangements made under this section shall exempt from United Kingdom income-tax any profits or gains which either:

  • (i) Arise from the sale of goods from a stock in the United Kingdom; or
  • (ii) Accrue to a person resident in the United Kingdom; or
  • (iii) Accrue to a person not resident in the United Kingdom directly or indirectly from the sale of goods effected in the United Kingdom through any branch or management in the United Kingdom or through any agency in the United Kingdom where the agent has and habitually exercises a general authority to negotiate and conclude contracts.

(2) Any declaration made by His Majesty in Council under this section shall be laid before the Commons House of Parliament as soon as may be after it is made and, if an address is presented to His Majesty by that House, within twenty-one days on which that House has sat next after the declaration is laid before it, praying that the declaration may be revoked, His Majesty in Council may revoke the declaration and the arrangements specified in the declaration shall thereupon cease to have effect, but without prejudice to the validity of anything previously done thereunder or to the making of a new declaration.

(3) The obligation as to secrecy imposed by any enactment with regard to income-tax shall not prevent the disclosure to any authorised officer of the foreign State or part of His Majesty's [?] mentioned in the declaration of such facts as may be necessary to enable relief to be duly given in accordance with the arrangements specified in the declaration.

previous
next