S.I. No. 211/1959:

Double Taxation Relief (Air or Sea Transport) (Swiss Federal Council) Order, 1959.

AN tORDÚ UM FHAOISEAMH Ó CHÁNACHAS DÚBAILTE (AERIOMPAR NÓ MUIRIOMPAR) (COMHAIRLE CHÓNAIDHME NA hEILBHÉISE), 1959.

WHEREAS it is enacted by section 15 of the Finance Act, 1951 (No. 15 of 1951), 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 that section 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 15 of the Finance Act, 1951 (No. 15 of 1951), hereby order as follows :

1. This Order may be cited as the Double Taxation Relief (Air or Sea Transport) (Swiss Federal Council) Order, 1959.

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

SCHEDULE.

AGREEMENT BETWEEN THE SWISS FEDERAL COUNCIL AND THE GOVERNMENT OF IRELAND CONCERNING THE TAXATION OF ENTERPRISES OPERATING SHIPS OR AIRCRAFT.

The Swiss Federal Council and the Government of Ireland, desiring to avoid double taxation with respect to enterprises operating ships or aircraft, have agreed as follows :--

ARTICLE I.

For the purpose of this Agreement, the expression :

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

(b) " Swiss enterprises " means the Swiss Confederation or any canton thereof, natural persons domiciled in Switzerland and not resident in Ireland, and corporations or partnerships constituted under the laws of and managed and controlled in Switzerland, including such corporations in which the Swiss Confederation or any canton thereof has a share ;

(c) " Irish enterprises " means the Government of Ireland, natural persons resident in Ireland and not domiciled in Switzerland, and corporations or partnerships constituted under the laws of and managed and controlled in Ireland, including such corporations in which the Government of Ireland have a share.

ARTICLE II.

(1) All income derived from the business of sea or air transport by Swiss enterprises engaged in such business (including any such income derived from participation in a pooled air service, in a joint air transport operating organisation or in an international air transport operating agency) shall be exempt from income tax and all other taxes on profits which are chargeable in Ireland.

(2) By virtue of the Federal Decree of the 1st October, 1952, authorising the Swiss Federal Council to exchange declarations of reciprocity with respect to the taxation of enterprises operating ships or aircraft, all income derived from the business of sea or air transport by Irish enterprises engaged in such business (including any such income derived from participation in a pooled air service, in a joint air transport operating organisation or in an international air transport operating agency) shall be exempt from all federal, cantonal and communal income and profits taxes which are chargeable in Switzerland, and all movable property including ships or aircraft used by such enterprises shall be exempt from all federal, cantonal and communal taxes on movable property which are chargeable in Switzerland.

ARTICLE III.

(1) This Agreement shall enter into force on the date of exchange, at Dublin, of notes indicating that both the Government of Ireland and the Swiss Federal Council have been empowered under their respective laws to give effect thereto.

(2) This Agreement shall have effect

(a) as regards tax chargeable in Ireland, in respect of income arising on or after the 1st January, 1954, and

(b) as regards tax chargeable in Switzerland, for any taxable year beginning on or after the 1st January, 1954.

ARTICLE IV.

This Agreement shall continue in force for an indefinite period of time, but may be terminated on the 1st January of any year by either party by giving at least six months' notice in writing to the other party.

Done in duplicate at Dublin, the 18th day of June, 1958, in the German and Irish languages, both texts being equally authoritative.

GIVEN under the Official Seal of the Government, this 27th day of November, 1959.

SEÁN F. LEMASS,

Taoiseach.

EXPLANATORY NOTE.

The purpose of this Order is to give the force of law in Ireland to the Agreement dated 18th June, 1958, between the Government and the Swiss Federal Council for the avoidance of double taxation on income derived from the business of air or sea transport.