Finance Act, 1950


Relief of Double Taxation: Income Tax, Sur-Tax and Corporation Profits Tax.

Confirmation of Convention set forth in Second Schedule:

12.—(1) The convention set forth in Part I of the Second Schedule to this Act and concluded on the 13th day of September, 1949, between the Government and the Government of the United States of America (in this section referred to as the Convention) is hereby confirmed and shall have the force of law.

(2) For the purpose of giving effect to the Convention, the provisions set forth in Part II of the Second Schedule to this Act shall have effect.

(3) The necessary apportionments shall be made for the purpose of giving effect to the terms of the Convention as respects corporation profits tax in the case of accounting periods beginning before the 1st day of April in the year in which the Convention first has effect and ending on or after that date, and any such apportionment shall be made in proportion to the number of months or fractions of months in the part of the relevant accounting period before the said 1st day of April and in the remaining part of the said relevant accounting period respectively.

(4) The Revenue Commissioners may from time to time make regulations in relation to the granting of the reliefs specified in the Convention and may, in particular, by those regulations provide—

(a) for securing that no such reliefs from taxation imposed by the laws of the United States of America as are provided for in the Convention shall enure to the benefit of persons not entitled thereto, and

(b) for authorising, in cases where tax deductible from any periodical payment has, in order to comply with the terms of the Convention, not been deducted and it is discovered that the Convention does not apply to that payment, the recovery of the tax by assessment on the person entitled to the payment or by deduction from subsequent payments.