The Government of the Kingdom of the Netherlands
the Government of the United Kingdom of Great Britain and Northern Ireland,
Desiring to conclude a Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to bank taxes,
Article 1. Entities covered
This Convention shall apply to entities which are residents of one or both of the Contracting States.
Article 2. Taxes Covered
3 This Convention shall also apply to any identical or substantially similar taxes that are imposed after the date of signature of the Convention in addition to, or in place of, the existing bank taxes. The competent authorities of the Contracting States shall notify each other of any significant changes which have been made in their laws relating to bank taxes.
Article 3. General Definitions
2 As regards the application of the Convention at any time by a Contracting State any term not defined therein shall, unless the context otherwise requires, have the meaning that it has at that time under the law of that Contracting State for the purposes of the bank taxes to which the Convention applies, any meaning under the applicable laws of that State relating to bank taxes prevailing over a meaning given to the term under other laws of that State.
Article 4. Residence
The residence of an entity will be determined by the domestic laws of the Contracting States. Where an entity is a resident of both Contracting States, then the entity shall for the purposes of this Convention be deemed to be a resident only of the State in which its place of effective management is situated.
Article 5. Elimination of Double Taxation
2 In the case of the United Kingdom, double charging of bank tax shall, subject to the provisions of the law of the United Kingdom regarding the allowance as a credit against the United Kingdom bank tax of a bank tax payable in a territory outside the United Kingdom (which shall not affect the general principle hereof), be dealt with as follows:
a) the Netherlands bank tax on an entity resident in the United Kingdom that is a subsidiary of a Netherlands resident member of a group shall, unless the parent of the group is resident in the United Kingdom, be allowed as a credit against the United Kingdom bank tax;
b) where the Netherlands bank tax has applied, either directly or through consolidation, to a permanent establishment situated in the United Kingdom, the credit shall, unless the parent of the group is resident in the United Kingdom, take into account the Netherlands bank tax attributable to the permanent establishment.
Article 6. Mutual Agreement Procedure
1 Where an entity considers that the actions of one or both of the Contracting States result or will result for it in taxation not in accordance with the provisions of this Convention, it may, irrespective of the remedies provided by the domestic law of those States, present its case to either competent authority. The case must be presented within three years from the first notification of the action resulting in taxation not in accordance with the provisions of the Convention, or, if later, within six years from the end of the year or the chargeable period in respect of which that taxation is imposed or proposed.
2 The competent authority to whom the case has been presented shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation which is not in accordance with the Convention. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the Contracting States, except such limitations as apply for the purposes of giving effect to such an agreement.
a) under paragraph 1 or 3, a case has been presented to the competent authority of a Contracting State on the basis that the actions of one or both of the Contracting States have either resulted for that entity in taxation not in accordance with the provisions of this Convention, or in double charging of bank taxes in cases not provided for in this Convention, and
b) the competent authorities are unable to reach an agreement to resolve that case pursuant to paragraph 2 or 3 within two years from the presentation of the case to the competent authority of the other Contracting State,
any unresolved issues arising from the case shall be submitted to arbitration if an entity directly affected by the case so requests. Unless an entity directly affected by the case does not accept the mutual agreement that implements the arbitration decision, that decision shall be binding on both Contracting States and shall be implemented notwithstanding any time limits in the domestic laws of these States. The competent authorities of the Contracting States shall by mutual agreement settle the mode of application of this paragraph.
Article 7. Exchange of Information
1 Subject to the provisions of the domestic law of the Contracting States, the competent authorities of the Contracting States shall exchange such information as is foreseeably relevant for carrying out the provisions of this Convention or to the administration or enforcement of the domestic laws concerning bank taxes, in particular, to prevent fraud and to facilitate the administration of statutory provisions against legal avoidance.
2 Any information received under paragraph 1 by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that State and shall be disclosed only to entities or authorities (including courts and administrative bodies) concerned with the assessment or collection of, the enforcement or prosecution in respect of, the determination of appeals in relation to the bank taxes or the oversight of the above. Such authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions. Notwithstanding the foregoing, information received by a Contracting State may be used for other purposes when such information may be used for such other purposes under the laws of both States and the competent authority of the supplying State authorises such use.
4 If information is requested by a Contracting State in accordance with this Article, the other Contracting State shall use its information gathering measures to obtain the requested information, even though that other State may not need such information for its own bank tax purposes. The obligation contained in the preceding sentence is subject to the limitations of paragraph 3 but in no case shall such limitations be construed to permit a Contracting State to decline to supply information solely because it has no domestic interest in such information.
5 In no case shall the provisions of paragraph 3 be construed to permit a Contracting State to decline to supply information solely because the information is held by a bank, other financial institution, nominee or person acting in an agency or a fiduciary capacity or because it relates to ownership interests in a bank.
Article 8. Entry into Force
Each of the Contracting States shall notify to the other, through diplomatic channels, the completion of the procedures required by its law for bringing into force this Convention. This Convention shall enter into force on the last day of the month following the month in which the later of these notifications has been received and shall have effect from 1 January 2011. Notice of completion shall be regarded as having been given by a Contracting State on the date of receipt of such notice by the other Contracting State.
Article 9. Termination
This Convention shall remain in force until terminated by one of the Contracting States. Either Contracting State may terminate the Convention, through diplomatic channels, by giving notice of termination at least six months before the end of any calendar year beginning after the expiry of five years from the date of entry into force of the Convention. In such event, the Convention shall cease to have effect from 1 January of the calendar year next following that in which the notice is given. Notice of termination shall be regarded as having been given by a Contracting State on the date of receipt of such notice by the other Contracting State.
IN WITNESS WHEREOF the undersigned, duly authorised thereto, have signed this Convention.
DONE at London on 12 June 2013, in duplicate, in the English language.
For the Government of the Kingdom of the Netherlands,
For the Government of the United Kingdom of Great Britain and Northern Ireland,