SAINT VINCENT
GOVERNMENT
GAZETTE
(E X T R A OR DINARY.)
Vn. 87.] SAINT VNCEN. FDAY, 3 DEC R, 1954.
VOL. 87.] SAINT VINCENT. FRIDAY, 31 DECEMBER. 19;4.
GOVERNMENT NOTICES.
No. 626.
LEGISLATION.
The following Document. is puiilishled
with this issue of the Gazette :-
S.R. & 0. No. 76.--Tii I', n,. Tiax
(Dou'i]. 'T'axaiionii Reli lf) .Sw\',e,
O)r<,]e ', 1954.
( F. 21f1950).
;L-il Dc.ni l w ,'. 1954.
No. 627.
LOCAL AUTHORITIES.
The underinentioned persons haveu
been chosen to serve as Members of the
Various L'c;al Authorities for the period
lt January. 1955 to 31st December.,
1956:-
BARROUALLTE TOWN BOARD.
Elected.
Norris Herman Quow. Esq.,
George Horatio John, Esq.,
Miss Elsa Anita Findlay,
Alwyn Louis Mandeville, Esq..
Nominated by Government.
G. M. Sandy, Esq.,
Robert Slater, Esq.
CALLIAQUA TOWN BOARD.
Elected.
W. Hendren Huggins, Esq.,
David James, Esq.,
.John A. E. Prince, Esq.,
Mrs. Brunetta Gibson,
Non miinated by Govermnient.
Gr.oge Dugan. Ksq.,
R\vId. Fr. Prancis E. Oudetr.
'H.\ATT-EAI;RL;A1R TOWN BO ..r.
p H/eed.
.}Ans G(rdion. E.q.,
.)o ,hn-on Simueln], Esq.,
Ow-n Stplheris, Esq.,
Mrs. Florece Jaiies,
N' minaled by Goverrnment.
1Revd. Ross Fowkps,
.Tonithan A. Tuckdr. E:y
G(:EOIGETOWN TOWN BOA E.>.
Elected.
Robert Stay, Esq.,
Sanmuel Yearwood, Esq..
Ezekiel Marksman, Esq..
Conrad Matthews, EEq.,
YNo inated by Governmenl.
Oarlton J. WilliCms, EKq.,
Elmon Coombs, Esq.
[NI* 3.
,' " ... ",
^^/>7.-Z?
SAINT VINCENT, FRIDAY, 31 DECEMBER, 19i4. 83).
LAYOU TOWN BOARD.
Elected.
Theophilus Woods, Esq.,
Milton Findlay, Esq.,
Reuben Jeffers, Esq.,
Harold Hendrickson, Isq..
Nominated by Government.
Honourable Herman Yonng.
Edward P. Fraser, Esq.
PORT ELIZABETIH TOWN BOA HD.
Elected.
Cyril D. Mclntosh, Esq..
F. A. Siinmons, Esq.,
Dawson B. Wallace, Esq.,
Menan Jarvis, Esq.,
Nominated by Governmedi.
Honorable Olive Tanins,
Joseph Connell, Esq (Revoulle
Offieer)
MARRIAQUA VILLAr;E ('OIMN'IL.
Elected.
Cornelius F. Brown, Esq..
Alonza D. Drayton. Esq..
Arbhnr W. Grant, Esq..
Vincent W. James, Esq.,
Nominated by Gilver',. *i.i : t.
Honourable L. (. Luihunm,
Miss Erminei Mitclhe.
TROUMACA VILLAGE COUNCIL.
Elected.
Clarence J. Byam, Esq.,
Theophilus Harry, Esq.,
Timothy Providence, Esq..
Archibald Robertson, Esq.,
Nominated by (lovernme'nt.
Leonard Providence. Esq..
Egbert Ledger. Esq.
*'
2. Each Local Authority "ill c.ueet
its own (ChairmanH at itt first mretiinu,
in accordance with the provisions (of tAe
Local (oveerli)wm nt Ordina t-c. 19!1.
(A. 5/1949).
By Command,
A. L. SAMUEL.
A ctinl t'oove, iz'ient ,Secretar,4.
GovE.NMEN'l OFFlC'(E;.
31st December. 1954.
POINTED BT THE GOVERNMENT PRINTER, AT THE GOVERNMENT PRINTING OMFICI.
Xn"IBTOWN, ST. V1Tcn*CT.
rPri.ep 4 r2it r7t
193
SAINT-VINCENT.
STATUTORY RULES AND ORDERS,
1954, No. 76
INCOME TAX (DOUBLE TAXATION RELIEF) SWEDEN)
ORDER.
(Gazetted 31st December, 1954.)
WHEREAS it is provided by section 54 of the Income Tax Ordinance, 1948, (No.
23 of 1948) that if the Governor in Council by Order declares that arrangements
specified in the Order have been made with the Government of any territory
outside the Colony of Saint Vincent 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 should
have effect, the arrangements shall have effect in relation to Income Tax
notwithstanding anything in any enactment :
AND WHEREAS by a Convention dated the 30th day of March, 1949, between His
Majesty in respect of the United Kingd6m 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 the 18th day of December, 1953, the said
Convention with certain modifications was applied to the Colony of Saint Vincent:
1. Declaration. Now THEREFORE IT IS HEREBY DECLARED by the Governor
in Council-
(a) that the arrangements specified in the First Schedule to this Order, as
modified by the provisions of the Second Schedule to this Order have
been made with the Government of Sweden;
(b) that it is expedient that those arrangements should have effect.
2. Short title. This Order may be cited as the Income Tax (Double
Taxation Relief) (Sweden) Order, 1954.
X
S? 2"
5 16 4 '
191
FIRST SCHEDULE.
Convention between His Majesty in respect of the United King-
dom 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,
H-a-ve ajppoited for that purpose as their Plenipotentiaries:
His Majesty the King of Great Btr.in, Ireland and the British Dominions
beyond the Seas :
For the United Kingdoo'. of Giat Britain and Northern Ireland:
Sir William Strarg, KI.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 Richardsson 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 :-
(a) In Sweden :
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").
(W) In the United Kingdom of Great Britain and Northern Ireland :
The income tax (including sur-tax) and the profits tax (hereinafter
referred to as United Kingdorm ax ").
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 requir6s-
(a) The term "United Kingdom" means Great Britain and Northern
Ireland, excluding the Channel Islands and the Isle of Man;
(b) The terms one of the territories and the other territory," mean the
United Kingdom or Sweden, as the context requires;
195
(c) The term "tax" means United Kingdom tax or Swedish tax, as the
context requires;
(d) The term person" includes any body of persons, corporate or not
corporate;
(e) The term company means any body corporate;
(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;
(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;
(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 Kingdor-i and an industrial or
commercial enterprise or undertaking carried on y 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;
(i) The term industrial or commercial profits includes rents or royalties
in respect of cinematograph films;
(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 bf merchandise from
which he regularly fills orders on its behalf. In this connexion-
(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;
(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.
(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
196
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 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 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.
S2. 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
jn 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 sam6
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-
(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
(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 two 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 late 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 per cent. 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. (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
sur-tax.
(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 per cent.
Provided that where the resident of the United Kingdom s a company which
controls, directly or indirectly, not less than 50 per cent 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.
198
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, aebent.ires 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 snail 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 d,-s not carry on a trade or business in the first-mentioned territory through
a periimeent 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.
*:. Any royalty or other amount paid in respect of the operation of a mine or
quarry o;" of any other extraction of natural resources within the territory of the
Unli::d KLingdom 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.
199
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. Remunerations 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 91 the United Kingdom shall be exempt
from Swedish tax on profits or remuneiMtion in respect of personal (including
professional) services performed within Sweden in any year of assessment if-
(a) he is present within Sweden for a period or periods not exceeding in the
aggregate 183 days during that year, and
(b) the services are performed for or on behalf of a resident of the United
Kingdom, and
(c) the profits or remuneration are subject to United Kingdom tax.
2. An individual who is a resident of Sweden shall be exempt from United
Kingdom tax or profits or 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) the services are performed for or on behalf of a resident of Sweden, and
(c) the profits or remuneration are subject to British 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.
200
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 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 two 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 Sweten 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 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.
201
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 an 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 may be reduced by a sum
equal to 20 per cent. 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 for vissa offentliga
forestallningar) 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 tae 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 b -performed
in that territory.
6. The 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 persons 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.
202
2. As used in this Article, 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-
(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;
(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
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 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.
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-
(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;
(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.
(1) "Treaty Series No. 11 (1925)," Cmd. 2322.
(2) "Treaty Series No. 31 (1931)," Cmd. 3923.
203
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 ior whose foreign relations the United Kingdom is
responsible and which niposes taxes substantially similar in character to those
which are the subject oe the pr:.cnt Cownveition, and any such extension shall
take effect from such date and'subject to such modifications and conditions
(including conditions as to te:minatioi) as may be specified and agreed between
the High Contracting Parties in hotes to be exchanged for this purpose.
2. The termination in respect of Sweden or the United Kingdom of the
present Convention under Article XXV a;lall, 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 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-
(a) In Sweden :
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;
as respects coupon tax payable on or after 1st January, 1949;
as respects cap.i!-al tax ;whLch is assessed in or after the calendar
year bcginnilg on Ist January, 1950.
(b) In tihe United Kingdom :
as respects income tax for any year of assessment beginning on or
after 6th April, 1949;
as respects sur-tax for any year of assessment beginning on or after
6th April, 1948; and'
as respects profits tax in respect of the following profits:-
S (i) profits arising in any chargeable accounting period beginning on
or after 1st April, 1949;
(ii) profits attributable to so much of any chargeable accounting
period falling p- 11:, before and partly after that date as falls after
that date;
(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.
204
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-
(a) In Sweden :
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;
as respects coupon tax payable on or after 1st January in the
calendar year next following that in which the notice is given;
as respects capital tax assessed in or after the second calendar year
following that in which the notice is given.
(b) In the United Kingdom :
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;
as respects sur-tax 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 :-
(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;
(ii) profits attributable to so much of any chargeable accounting period
falling partly before and partly after that date as falls after that
date;
(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 STRANGE ,
(L.S.) GUNNAR HAGGLOF.
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SECOND SCHEDULE.
1. Application.
(a) The provisions of the Convention incorporated in the First Schedule to
this Order shall apply as modified below-
(i) -as if the contracting parties were the Colony and the Government
of Sweden; and as if the tax concerned in the case of the Colony
were the Income Tax;
(ii) as if reference to the date of signature were references to the 18lh
day of December, 1953;
(b) The extension shall have effect in the Colony 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, as respects Swedish
tax on income for which preliminary tax is payable after the last of
February in the calendar year next following the date of this Order; as
respects Swedish coupon tax payable on or after 1st January in the
calendar year next following the date of this Order; as respects Swedish
capital tax assessed in or after the second calendar year next following
that date;
(c) the extension shall continue in effect indefinitely but may be terminated
as respects the Colony by written notice of termination given on or
before the 30th 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
shall cease to have effect in the Colony as respects tax for the year of
assessment beginning in the calendar year next following the datP of
such notice and for subsequent years of assessment, and will cease 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 respect Swedish
coupon tax payable on or after 1st 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.
(a) 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 shall not be liable to tax in the territory at a :ate
in excess of the rate applicable to a company "
(b) Article VIII shall be deemed to be deleted.
Made by the Governor in Council under section r4 of the Income Tax
Ordinance, 1948, (No. 23 of 1948) this 28th day of December 1954.
F. GILBERT THOMAS,
(F 21/1950.) Ag. Clerk of Executive Council.
PRINTED BY THE GOVERNMENT PRINTER, AT THE GOVERNMENT PRINTING OFFICE,
KINGSTOWN, ST. VINCENT.
[ Price 52 cents.]
1954.
