[Enclosure]
British Order in Council, November 7,
1924
Whereas it is provided by subsection (1) of
section eighteen of the Finance Act, 1923, that if His Majesty in
Council is pleased to declare—
- (a)
- that any profits or gains arising from the business of
shipping which are chargeable to British income tax are also
chargeable to income tax payable under the law in force in
any foreign state; and
- (b)
- that arrangements, as specified in the declaration, have
been made with the government of that foreign state with a
view to the granting of relief in cases where such profits
and gains are chargeable both to British income tax and to
the income tax payable in the foreign state;
then, unless and until the declaration is revoked by
His Majesty in Council, the arrangements specified therein shall, so
far as they relate to the relief to be granted from British income
tax, have effect as if enacted in that Act, but only if and so long
as the arrangements, so far as they relate to the relief to be
granted from the income tax payable in the foreign state, have the
effect of law in the foreign state:
And whereas it is provided by section two
hundred and thirteen of the Act of Congress of the United States of
America known as the Revenue Act of 1921, that the term “gross
income”, for the purpose of income tax chargeable under the law of
the United States of America, shall not include the income of a
non-resident alien or foreign corporation which consists exclusively
of earnings derived from the operation of a ship or ships documented
under the laws of a foreign country which grants an equivalent
exemption to citizens of the United States and to corporations
organised in the United States:
And whereas His Majesty’s Government have
intimated to the Government of the United States of America that
they propose to take the necessary steps under the said section
eighteen of the Finance
[Page 271]
Act, 1923, for providing that any profits accruing from the business
of shipping carried on with ships documented under the laws of the
United States to a citizen of the United States resident outside the
United Kingdom or to a corporation organised in the United States
shall be, and as from the first day of May, nineteen hundred and
twenty-three, be deemed to have been, exempt from income tax
(including super-tax) chargeable in the United Kingdom:
And whereas the Government of the United
States of America have signified to His Majesty’s Government that
they are prepared to regard the exemption to be provided as
aforesaid as an equivalent exemption within the meaning of section
two hundred and thirteen of the Act of Congress of the United States
known as the Revenue Act of 1921:
Now, therefore, His Majesty is pleased, by
and with the advice of His Privy Council, to declare, and it is
hereby declared—
- (a)
- that certain profits or gains arising from the business of
shipping which are chargeable to British income tax are also
chargeable to the income tax payable under the law in force
in the United States of America; and
- (b)
- that the arrangements aforesaid have been made with a view
to the granting of relief in cases where profits or gains
arising from the business of shipping are chargeable both to
British income tax and to the income tax payable in the
United States of America.
And His Majesty is further pleased to
order, and it is hereby ordered, that this Declaration may be cited
as The Relief from Double Income Tax on Shipping Profits (United
States of America) Declaration, 1924.
