The convention was provided for in the order of double taxation (Switzerland) of 1978 (S.I. 1978/1408) and had previously been adopted by the 1982 decrees in the schedules to the Double Relief Taxation (Switzerland) (S.I. 1982/714), 1994 (S.I. 1994/3215) and 2007 (S.I. 2007/3465), as well as the international enforcement decision on double taxation and tax enforcement (Switzerland) 2010 (S.I. 2010/2689). The agreement was also supplemented by the agreement attached to the 2012 Regulation (S.I. 2012/3079) on double taxation relief and the enforcement of international tax (Switzerland). The change protocol will come into effect through the decision.
The UK has mutual agreements with a number of countries on the EU Directive on the taxation of savings income in the form of interest. The United Kingdom has also concluded a number of non-reciprocal agreements on the European Savings Tax Directive. Article 2 defines the effect and content of the provisions of the amendment protocol (“agreements”). The preamble to the agreement and the articles of the convention concern general definitions, related companies, dividends, interest, royalties, other income, the abolition of double taxation and the procedure of mutual agreement are amended. An article on entitlement to benefits is added to the agreement. The OECD`s Multilateral Convention on the Implementation of Measures to Prevent Erosion and Profit Transfer (“Multilateral Instrument” or “MLI”) of the OECD came into force in the United Kingdom on 1 October 2018 and will have a fundamental influence on how taxpayers have access to the double taxation (DT) conventions to which they apply. It began from 1 January 2019 (z.B with regard to WHT) for the UK DT, with the territories also ratified before 1 October 2018, in which these are tax treaties. The specific dates on which the MLI takes effect for other purposes or for other TDAs depend on when other contracting parties submit their ratification instruments to the OECD and the options and reservations they have submitted.
The United Kingdom has concluded a series of bilateral tax cooperation agreements through the exchange of information. On 13 March 2009, the Federal Council announced that Switzerland intends to adopt OECD standards for mutual tax assistance, in accordance with Article 26 of the OECD Model Tax Convention. The decision allows the exchange of information with other countries in individual cases where a concrete and reasoned request has been made. The Federal Council has decided to withdraw the reserve for the OECD`s model tax treaty and to begin negotiations on the revision of double taxation conventions. However, Swiss banking secrecy remains intact. The Federal Council`s decision is implemented within the framework of bilateral double taxation agreements. Greater information exchange will only have a practical effect if the renegotiated agreements come into force. In addition, adjustments must be made to the agreement with the EU on the taxation of savings. S.I. 1978/1408; the provisions of this decision were amended by the agreements in flight plans S.I. 1982/714, 1994/3215, 2007/3465 and 2010/2689 and were supplemented by the agreement on the S.I.
2012/3079 list. HMRC has reached an agreement with the Swiss tax authorities. The agreement allows for close cooperation between the UK and Switzerland, and there is an important exchange of information between the two countries.