S.I. No. 459/2008 - Exchange of Information Relating to Tax Matters and Double Taxation Relief (Taxes on Income) (Isle of Man) Order 2008

1. This Agreement shall remain in force until terminated by either Party.

2. Either Party may terminate this Agreement by giving notice of termination in writing. Such termination shall become effective

(

a

) in Ireland

(i) in respect of income tax, for any year of assessment beginning on or after 1 January in the calendar year next following that in which the notice of termination is given;

(ii) in respect of corporation tax, for any financial year beginning on or after 1 January in the calendar year next following that in which the notice of termination is given, and;

(

b

) in the Isle of Man in respect of Manx tax, for any taxable period beginning on or after 6 April in the calendar year next following that in which the notice of termination is given.

3. Notwithstanding the provisions of paragraph 1 and 2, this Agreement shall, upon receipt of written notice of termination of the Agreement for the Exchange of Information Relating to Tax Matters between the Parties, terminate and cease to be effective on the first day of the month following the expiration of a period of six months after the date of receipt of such notice.

In witness whereof

the undersigned, being duly authorised in that behalf by their respective Governments, have signed this Agreement.

Done

at Dublin, Ireland this 24th day of April, 2008, in duplicate.

FOR IRELAND

FOR THE ISLE OF MAN

Brian Cowen

Allan Bell

GIVEN under the Official Seal of the Government,

29 October 2008

BRIAN COWEN,

Taoiseach.

EXPLANATORY NOTE.

(This note is not part of the Instrument and does not purport to be a legal interpretation.)

This Order gives the force of law to the Tax Information Exchange Agreement (TIEA) and the Agreement for Affording Relief from Double Taxation with respect to certain Income of Individuals and Establishing a Mutual Agreement Procedure in connection with the Adjustment of Profits of Associated Enterprises between Ireland and the Isle of Man, which are set out in the Schedule to the Order. The Agreements were signed in Dublin on 10 March 2008.

The provisions of the Agreements are summarised below.

The Tax Information Exchange Agreement (TIEA) is based on a model agreement that was developed by the OECD. The Agreement allows the tax authorities of Ireland or the Isle of Man to request information from each other in relation to tax matters under investigation, in particular, for bank account information and for information concerning the beneficial ownership of companies, trusts and partnerships. The taxes covered in the case of Ireland are Income Tax, Corporation Tax, Capital Gains Tax and Capital Acquisitions Tax. The possibility of obtaining permission to use information exchanged in VAT investigations is covered in a Protocol to the Agreement. There are also provisions in the Agreement that allow each Party to carry out tax investigations in the territory of the other Party, that allow for the possibility of declining a request, that cover confidentiality and that deal with which Party should bear certain costs incurred in relation to exchanging information under the Agreement. There are also provisions that allow the competent authorities of both Parties to resolve difficulties concerning the interpretation or application of the Agreement.

The Agreement for Affording Relief from Double Taxation with respect to certain Income of Individuals and Establishing a Mutual Agreement Procedure in connection with the Adjustment of Profits of Associated Enterprises applies to Irish Income tax and Corporation Tax and allows for relief from double taxation in respect of certain items of income that might otherwise be subject to tax in both jurisdictions. Income from pensions and annuities arising in one jurisdiction and paid to a resident of the other will be taxed only in that other jurisdiction. Salaries and pensions of government workers will generally be taxed only in the jurisdiction paying the salaries and pensions. Income of students will be taxed only in the jurisdiction were the student is studying, provided that the income arises from sources outside that jurisdiction. Income earned by a professor or teacher who was a resident of one jurisdiction and who is temporarily in the other jurisdiction teaching at a university or college will be exempt from tax for a period of up to two years; the exemption can be availed of only once by such professor or teacher.

The Agreement also has provisions dealing with the adjustment of profits of associated enterprises. They provide that if the tax authority in one jurisdiction increases the profits of a company resident in it in relation to business transactions with an associated company in the other jurisdiction, the tax authority in the other jurisdiction should make a corresponding downward adjustment in the profits of the associated company if it agrees with the adjustment made by the other tax authority. Finally there is a mutual agreement procedure under which the tax authorities of both jurisdictions can resolve difficulties concerning the interpretation or application of the Agreement.

Both Agreements will enter into force when each country notifies the other of the completion of its procedures for bringing them into force. The TIEA will thereupon come into effect immediately and the Agreement for Affording Relief from Double Taxation will thereupon have effect in both countries for tax periods beginning in the following year.

4. Information provided to a requesting Party under this Agreement may not be disclosed to any other jurisdiction.

ARTICLE 8

COSTS

Unless the competent authorities of the Parties otherwise agree, ordinary costs incurred in providing assistance shall be borne by the requested Party, and extraordinary costs incurred in providing assistance (including costs of engaging external advisors in connection with litigation or otherwise necessary to comply with the request) shall be borne by the requesting Party. The competent authorities shall consult from time to time with regard to this Article, and in particular the competent authority of the requested Party shall consult with the competent authority of the requesting Party in advance if the costs of providing information with respect to a specific request are expected to be extraordinary.

ARTICLE 9

MUTUAL AGREEMENT PROCEDURES

5. The requested Party may decline a request for information if the information is requested by the requesting Party to administer or enforce a provision of the tax law of the requesting Party, or any requirement connected therewith, which discriminates against a national or citizen of the requested Party as compared with a national or citizen of the requesting Party in the same circumstances.

ARTICLE 7

CONFIDENTIALITY

6. The competent authority of the requested Party shall acknowledge receipt of the request to the competent authority of the requesting Party and shall use its best endeavours to forward the requested information to the requesting Party with the least possible delay.

ARTICLE 5

TAX INVESTIGATIONS ABROAD

S.I. No. 459 of 2008

EXCHANGE OF INFORMATION RELATING TO TAX MATTERS AND DOUBLE TAXATION RELIEF (TAXES ON INCOME) (ISLE OF MAN) ORDER 2008

Notice of the making of this Statutory Instrument was published in

“Iris Oifigiúil” of

4

th November

, 2008.

WHEREAS it is enacted by section 826(1B) of the

Taxes Consolidation Act 1997

(No. 39 of 1997) that if the Government by order declare that arrangements specified in the order have been made with the government of any territory outside the State in relation to

(i) exchanging information for the purposes of the prevention and detection of tax evasion in the case of taxes of any kind or description imposed by the laws of the State or by the laws of that territory,

(ii) such other matters relating to affording relief from double taxation as the Government consider appropriate,

and that it is expedient that those arrangements should have the force of law, and that the order so made is referred to in Part 3 of Schedule 24A of the

Taxes Consolidation Act 1997

, then subject to section 826 of that Act, the arrangements shall, notwithstanding anything in any enactment, have the force of law as if such order were an Act of the Oireachtas on and from the date of the insertion of a reference to the order into Part 3 of Schedule 24A

AND WHEREAS it is further enacted by section 826(6) of the

Taxes Consolidation Act 1997

that where such an order is proposed to be made, a draft of the order 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 the following 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 826(1B) of the

Taxes Consolidation Act 1997

, hereby order as follows