S.I. No. 89/1970 - Double Taxation Relief (Sea Or Air Transport) (Belgium) Order, 1970.

S.I. No. 89 of 1970.

DOUBLE TAXATION RELIEF (SEA OR AIR TRANSPORT) (BELGIUM) ORDER, 1970.

WHEREAS it is enacted by section 362 of the Income Tax Act, 1967 (No. 6 of 1967), that the Government may by order confirm and give the force of law to an arrangement entered into by the Government with the government of a foreign state with a view to affording relief from double taxation in cases where income derived from the business of sea or air transport is chargeable both in the State and in the foreign state to income tax, or to any tax corresponding to income tax, or to any other tax on profits:

AND WHEREAS it is further enacted by section 362 (4) of that Act that where an order is proposed to be made under that section, 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 362 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 (Sea or Air Transport) (Belgium) Order, 1970.

2. The arrangement set out in the Schedule to this Order is hereby confirmed and given the force of law.

SCHEDULE

Agreement between Ireland and Belgium

for the purpose of avoiding double taxation

of income derived from the business of sea

and air transport.

The President of Ireland,

and

His Majesty the King of the Belgians,

Desiring to avoid double taxation of income derived from the business of sea or air transport,

Have decided to conclude, for that purpose, an agreement and have nominated as their Plenipotentiaries the following:

The President of Ireland:

His Excellency Mr. Gerard Woods,

Ambassador of Ireland in Brussels;

His Majesty the King of the Belgians:

His Excellency Mr. Pierre Harmel,

Minister for Foreign Affairs,

Who, having exchanged their full powers found in good and due form, have agreed the following provisions:

ARTICLE 1.

In the present Agreement:

(a) the term "Belgium" means the Kingdom of Belgium;

(b) the term "Belgian enterprise" means an enterprise carried on by the Belgian State, by an individual who is an inhabitant of the Kingdom of Belgium and not resident in Ireland or by a company—including a partnership—or association constituted in conformity with the laws of Belgium and managed and controlled on the territory of Belgium;

(c) the term "Irish enterprise" means an enterprise carried on by the Irish Government, by an individual resident in Ireland who is not an inhabitant of the Kingdom of Belgium, or by a company, partnership or association constituted in conformity with the laws of Ireland and managed and controlled on the territory of Ireland;

(d) the term "business of sea or air transport" means the business of transporting by sea or air persons, livestock, goods or mail by the owner, charterer or hirer of ships or aircraft;

(e) the term "income" shall include profits arising from the sale of travel tickets.

ARTICLE 2.

1. All income arising to a Belgian enterprise from the operation of the business of sea or air transport between Ireland and all other territories shall be exempt from income tax and from all other taxes on income or profits which are or may become chargeable in Ireland.

2. All income arising to an Irish enterprise from the operation of the business of sea or air transport between Belgium and all other territories shall be exempt from income tax and from all other taxes on income or profits which are or may become chargeable in Belgium.

ARTICLE 3.

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

2. It shall come into force on the day of the exchange of the instruments of ratification and shall apply:

(a) as regards Irish taxes, in respect of income and profits derived on or after the 1st January, 1950, and

(b) as regards Belgian taxes, in respect of income and profits earned in accounting periods ending on or after 31 December, 1950.

ARTICLE 4.

The present Agreement may be terminated by either Contracting Party by giving to the other Contracting Party six months notice in writing it being agreed in that event that the Agreement shall cease to have effect:

(a) as concerns Ireland, in respect of income and profits derived on or after the 1st January preceding the expiration of this interval of six months;

(b) as concerns Belgium, in respect of income and profits earned in accounting periods ending on or after the 31st December immediately following the expiration of that same interval.

In witness whereof the Plenipotentiaries of the two States have signed this Agreement and have thereto affixed their seals.

Done at Brussels, the 4th December 1967, in duplicate, in the English, Irish, French and Dutch languages, the four texts being equally authoritative.

GIVEN under the Official Seal of the Government, this 28th day of April, 1970.

SEÁN Ó LOINSIGH,

Taoiseach.

EXPLANATORY NOTE.

The purpose of this Order is to give the force of law in Ireland to the Agreement dated 4th December, 1967 between Ireland and Belgium for the purpose of avoiding double taxation of income derived from the business of sea and air transport.