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the Income Tax Act, 1967 (No. 6
1967), as amended by section 86
the Finance Act, 1974 (No. 27
1974), section 38
the Capital Gains Tax Act, 1975 (No. 20
1975), section 166
the Corporation Tax Act, 1976 (No. 7
1976), and section 47
the Finance Act, 1983 (No. 15
1983), that if the Government by order declare that arrangements specified in the order have been made with the government
any territory outside the State in relation to affording relief from double taxation in respect
income tax, corporation tax or capital gains tax and any taxes
a similar character, imposed by the laws
the State or by the laws
that territory, and that it is expedient that those arrangements should have the force
law, the arrangements shall, notwithstanding anything in any enactment other than section 47
the Finance Act, 1983 , have the force
law: AND WHEREAS it is further enacted by section 361
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
the draft has been passed by Dáil Éireann: NOW, the Government, in exercise
the powers conferred on them in section 361
the Income Tax Act, 1967 (No. 6
1967), as amended by section 38
the Capital Gains Tax Act, 1975 (No. 20
1975), section 166
the Corporation Tax Act, 1976 (No. 7
1976), and section 47
the Finance Act, 1983 (No. 15
1983), hereby order as follows:
Sweden in relation to affording relief from double taxation in respect
income tax, corporation tax or cpaital gains tax and any taxes
a similar character, imposed by the laws
the State or by the laws
Sweden, and ( b ) that it is expedient that those arrangements should have the force
law. SCHEDULE PROTOCOL AMENDING THE CONVENTION BETWEEN IRELAND AND SWEDEN FOR THE AVOIDANCE
DOUBLE TAXATION AND THE PREVENTION
FISCAL EVASION WITH RESPECT TO TAXES ON INCOME AND CAPITAL GAINS SIGNED IN STOCKHOLM ON 8 OCTOBER 1986 The Government
Ireland and the Government
Sweden; Desiring to conclude a Protocol to amend the Convention between Ireland and Sweden for the avoidance
double taxation and the prevention
fiscal evasion with respect to taxes on income and capital gains signed in Stockholm on 8 October 1986 (hereinafter referred to as "the Convention"); Have agreed as follows: ARTICLE 1 Subparagraph (b)
paragraph
the Convention shall be deleted and replaced by the following: "(
the Convention shall be deleted.
the Convention shall be deleted and replaced by the following: "
paragraph
this Article, dividends paid by a company which is a resident
Ireland to a company which is a resident
Sweden shall be exempt from Swedish tax to the extent that the dividends would have been exempt from Swedish tax if both companies had been Swedish companies. This provision however is only applicable if: ( a ) the profits out
which the dividends are paid have been subjected to the normal corporate tax in Ireland or a tax comparable to the Swedish corporate tax in Ireland or elsewhere; or ( b ) the dividends paid by the company which is a resident
Ireland consist wholly or almost wholly
dividends which that company has received in respect
shares held by it in a company which is a resident in a third state and which would have been exempt from Swedish tax if the shares in respect
which they are paid had been held directly by the company which is a resident
Sweden."
the following: "or shall be exempt from Swedish tax in accordance with paragraph
this Article".
paragraph
paragraph
the Finance Act, 1980 , (as those provisions may be amended from time to time without changing the general principle thereof) the profits
a company were relieved from Irish tax, then— (i) for the purposes
paragraph
income which may be taxed in Ireland in accordance with the provisions
, the reference in that paragraph to "an amount equal to the Irish tax paid in respect
such income" shall have effect as if the Irish tax paid were an amount equal to one half
the Swedish tax payable on that income, (ii) for the purposes
paragraph
paragraph
a dividend out
those profits, if he were a resident
Ireland, would be entitled to a reduced tax credit in respect
the dividend, the amount to be allowed as a deduction under that paragraph shall be deemed to be an amount arrived at by applying to the gross aggregate amount referred to in that paragraph a rate per cent equal to three-fifths
the Swedish tax rate applicable to that gross aggregate amount. ( b ) Notwithstanding anything in subparagraph (a), where the profits
a company relieved from Irish tax under the provisions referred to in that subparagraph are profits from the carrying on by that company
financial services activities, this paragraph shall not apply to such profits, or to any dividends paid out
such profits, unless the competent authorities, having consulted each other, agree that the activities are such that this paragraph shall apply to profits from those activities and to any dividends paid out
those profits. ( c ) The paragraph shall not have effect in relation to profits arising after 31 December, 2000, or to dividends paid out
such profits. Provided that the competent authorities may, at the request
either competent authority (made not later than 30 June, 1997), review the scope and application
this paragraph and, if it appears to either or both
them— (
written notice through diplomatic channels." ARTICLE 3
the Contracting States shall notify to the other the completion
the procedure required by its law for the bringing into force
this Protocol.
thirty days following the date
the later
these notifications and shall thereupon have effect. ARTICLE 4 Notwithstanding the preceding Articles
this Protocol, income and dividends accruing to a resident
Sweden out
profits which are derived before the entry into force
this Protocol by a company resident in Ireland or by a permanent establishment in Ireland
that resident
Sweden will, up to and including 31 December, 1994, be entitled to the same exemptions and reliefs to which they would have been entitled under the Convention between Ireland and Sweden for the avoidance
double taxation and the prevention
fiscal evasion with respect to taxes on income and capital gains signed in Stockholm on 8 October, 1986, if this Protocol had not entered into force. However, the provisions
this Article shall not apply where the profits
the company resident in Ireland or
the permanent establishment in Ireland are profits from the carrying on by that company or permanent establishment
a financial services activity in Ireland, unless the competent authorities agree that subparagraph (a)
paragraph
the said Convention, as amended by this Protocol, would, whether or not the company or the permanent establishment has stopped trading, apply if the activities have been carried out after the entry into force
this Protocol to profits from that activity or to dividends paid out
them. ARTICLE 5 This Protocol shall cease to have effect at such time as the Convention ceases to have effect in accordance with Article 31
the Convention. In witness whereof the undersigned, duly authorised thereto by their respective Governments, have signed this Protocol. Done at Dublin this 1st day
July, 1993 in duplicate in the English language. Dick Spring Margareta Hegardt For the Government For the Government
Ireland:
Sweden: GIVEN under the
ficial Seal
the Government, this 21st day
December, 1993. ALBERT REYNOLDS, Taoiseach. EXPLANATORY NOTE. This Order gives the force
law in Ireland to the Protocol amending the Convention between Ireland and Sweden set out in the Schedule to the Order. The Protocol amends the list
Swedish taxes to which the Convention applies. The Protocol also provides for amendments to the manner in which Sweden provides relief from double taxation while still preserving the benefits
Ireland's tax incentives. Under the terms
the Protocol Sweden will relieve double taxation by way
an exemption from further taxation where dividends are paid by an Irish company to a Swedish company and where such an exemption would have applied if both companies were resident in Sweden. The effect
this is that a Swedish company with a 25 per cent or more holding in the Irish company paying the dividend will be exempt from Swedish tax on that dividend. For the purposes
this exemption, dividends out
profits taxed at only 10 per cent under the Irish tax incentive regime are to be regarded as dividends paid out
profits taxed at a normal rate in Ireland. The exemption from Swedish tax for Irish branch profits
a Swedish company has been replaced by a system
credit for the Irish tax paid. However, insofar as the profits
an Irish branch
a Swedish company are subject to taxation under the Irish 10 per cent scheme there is provision for a matching credit against Swedish tax equal to one half
the Swedish tax due on those branch profits. In the case
portfolio investors in receipt
dividends with reduced tax credits as a result
the Irish incentives matching credit by way
a deduction
3/5ths
the Swedish tax rate applicable to the aggregate amount
the dividend and the tax credit will be granted. Profits, or dividends paid out
such profits,
a company carrying on financial services activities which are relieved from Irish tax under the Irish incentive provisions will qualify for the above mentioned relief's only when the competent authorities
the two countries agree that they should. A consultation process and principles for determining that a financial services project is genuine have been agreed pursuant to a Memorandum
Understanding signed by the competent authorities, details
which follow this note. The Protocol provides that the tax sparing relief's provided by Sweden will apply to 31 December, 2000. There is a provision for this date to be amended by way
negotiation where the necessary steps are taken before 30 June, 1997. The existing provisions
the Convention will continue to apply until 31 December, 1994 for income and dividends accruing to a resident
Sweden out
profits which are derived before the entry into force
the Protocol. In the case
income from financial services activities, this provision is again subject to the agreement
the competent authorities. The provisions
the Protocol will enter into force thirty days after the two States have notified each other
the completion
the necessary domestic procedures to give the Protocol the force
law and will be effective from that date. APPENDIX Subparagraph (b)
paragraph 8
the Convention as inserted by paragraph 6
the Protocol provides for a consultation process to ascertain if certain financial services activities qualify for the benefit
the relief's set out in Article 24
the Convention. The competent authorities
both countries have agreed details
a consultation process together with principles for determining that a financial services project is genuine for the purposes
It should be noted that these documents do not form part
the Protocol. MEMORANDUM
UNDERSTANDING As respects subparagraph (b)
paragraph 8
, at the time
entering into force
this Protocol the competent authorities, having consulted each other, have agreed —that the purpose
the consultation process referred to in that subparagraph in relation to financial services is to prevent financial services based schemes whose sole or chief purpose is the general avoidance
taxation from gaining access to the benefits
paragraph 3 and paragraph 8 and both competent authorities avow and affirm that there is no desire or intent to prevent genuine commercially based financial services projects from gaining access to those benefits and it is avowed and affirmed that such projects will gain such access, — to devise a set
procedures to ensure that the consultation process shall be carried out without undue delay, Annex "A", so that the acceptance or rejection
a project will be communicated to the promoters as quickly as possible. A resident
either country may seek the assistance
either
the competent authorities if the resident is
the opinion that the other competent authority is causing undue delay in carrying out its part
the consultation process, —to devise a set
principles for the determining that a financial services project is genuine within the terms
the consultation process, Annex "B", and —that the competent authorities may enter into agreement from time to time that certain clearly defined types
financial services are acceptable to both competent authorities and may agree that such financial services shall be entitled to the aforementioned benefits without the need to go through the consultation process. It is further agreed that the substance
such agreements may be made public by either or both competent authorities. Done in Dublin on 12 February, 1993 Done in Stockholm on 1 February, 1993 For the competent authority
Ireland For the competent authority
Sweden Mr. Frank Cassells Mr. Stefan Ersson Annex "A" CONSULTATION PROCESS FOR THE APPROVAL
PROJECTS FOR THE PURPOSES
THE SWEDEN/IRELAND PROTOCOL
the promoters
the project to ensure that all aspects
the project are made known to the competent authorities. This shall include not only the aspects
the project to be carried on in the Contracting State in which the project will be located but any matters which would be
concern to the Revenue authorities
the other Contracting State with regard to the intended activities
the promoters or their investors. Failure to disclose a material fact or any unapproved alteration
a material fact may result in any acceptance
a project being withdrawn, which might result in the loss
certain benefits
the Convention, from such date which may be a date retrospective to the date approval was given, or such later date as the competent authorities shall agree.
the first mentioned competent authority it shall so communicate that agreement to the first mentioned authority and, accordingly, the project shall be accepted or rejected as the case may be. The promoters shall be so informed by the first mentioned authority. In the case
a rejection the reasons for the rejection shall be communicated to the promoters who may, if they so wish, resubmit the project with the objectionable aspects removed or may make further representations with regard to any
the objectionable points raised by the competent authorities. 5. If there is not agreement, the other competent authority shall indicate to the first mentioned competent authority the reasons why it so disagrees. The first mentioned competent authority may, if it so deems appropriate, attempt to arrive at a reconciliation between the conflicting views
the competent authorities with such assistance from the promoters as shall be deemed appropriate. Alternatively they may refer the matter back to the promoters for amendment or further representation as at 4 above. 6. Both competent authorities pledge themselves to ensuring that the aforementioned consultation procedures shall be implemented with the maximum degree
dispatch consistent with the needs
ensuring that a correct decision is made. In general the competent authorities will strive to give a decision within 4 to 6 weeks. 7. On the basis
the information provided by the promoter
the project, the competent authorities, if requested, will give a non-binding advance indication as to whether the project is likely to be approved or rejected, always subject to confirmation following full investigation. 8. The substance
these consultation procedures may be made public by either or both competent authorities. Annex "B" PRINCIPLES FOR THE ACCEPTANCE THAT A FINANCIAL SERVICES PROJECT IS GENUINE WITHIN THE TERMS
THE CONSULTATION PROCESS These principles are issued for illustrative purposes only. They do not purport to be exclusive or exhaustive or to have any legal standing and are not binding on either competent authority. Depending on the nature
the project the absence
one or more
the guidelines need not necessarily lead to a rejection
the project although some
the guidelines such as 1 and 2 for example are
greater importance than others and their contravention would lead to the rejection
a project. 1. A genuine commercially viable product package must be visible involving real trading in real assets or the carrying out
other genuine commercial financial services related activities by way
real trading or as an integral part
a larger trading operation. 2. Where the activity involves the raising
a body
funds for a profit making venture or insurance, there must be a clearly demonstrated positive relationship and proportion between the level
funds raised for the project and the use
such funds for the specific venture or the risk to be covered. There must be a reasonable expectation
a commercial arm's length return on the funds. The venture must be carried on as a trade. 3. The method
sourcing
funds (i.e. borrowed or surplus) will be taken into account in assessing the acceptability
a project including cases arising under 1 or
substance: personnel,
fices and appropriate
fice equipment, marketing, accounts etc. or be carried on in association with another company which possesses those qualities in due measure in relation to the enterprise as would be present if the enterprise were to stand alone. In either case the project must be operating under a specific business plan (see below). 5. The project should have the capacity to be able to demonstrate through a reasonable business plan which contains specific information on the nature
the proposed activities that it has the ability and a specific expansion plan to generate enhanced activity. 6. A genuine business operation can have periods
passive investment in securities or deposits for genuine or exceptional reasons in the course
an active financial services business.
these principles may be made public by either or both competent authorities. Privacy Statement Accessibility European Legislation Identifier (PDF) Open Data License Ráiteas Príobháideachais Inrochtaineacht Aitheantóir Eorpach Reachtaíochta (ELI) Ceadúnas Sonraí Oscailte Liosta Fianán © Government
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AI explanation based on the official legal text. Indicative, not a substitute for legal advice.