It is much more common to seek the services of a qualified and experienced accountant to seek tax breaks through double taxation agreements. Fees vary depending on the complexity of an individual`s personal life, in almost all cases, the tax savings far exceed all the costs of using an accountant – and they can be sure to pay the correct amount of tax with total confidence. For the purposes of this article, we consider that a person is tax resident in the United Kingdom and resident of an additional country, although double taxation agreements may exist between two countries. 3. The competent authorities of the contracting states try to resolve by mutual agreement any difficulty or doubt about the interpretation or application of the convention. In particular, the competent authorities of the contracting states can agree on: 2. The competent authority referred to in paragraph 1 endeavours to resolve the matter by mutual agreement with the competent authority of the other State party where the objection appears to be well-founded and is unable to find an appropriate solution to resolve the matter by mutual agreement with the competent authority of the other State party. to avoid taxation that is not in accordance with the convention. 2. In the case of the United Kingdom, double taxation is avoided as follows: Subject to the provisions of UK law on the allowance as a UK tax credit payable in a territory outside the United Kingdom (which does not affect the general principle of this measure): that is why we offer a free preliminary consultation with a qualified accountant who can give you answers to your questions and help you. understand if a double taxation agreement could apply to you and help them save huge amounts of unnecessary taxes. Look at tax rates, the latest tax news and information on double taxation agreements with our specialized online resources, guides and useful links. The BEPS MLI was designed to simplify the process of introducing key recommendations from the OECD`s work to combat tax base erosion and profit shifting (BEPS) into double taxation agreements.
Much of the OECD`s work in this area has been to ensure that contractual benefits are not realized in inappropriate circumstances (through the proposed adoption of benefit restriction clauses (LOB) and the adoption of new rules to combat tax evasion in countries` tax treaties (usually through the adoption of the OECD`s basic test (TPP). The table below shows countries that have entered into a double taxation agreement with the United Kingdom (as of October 23, 2018). On the UK government`s website, you will find an updated list of active and historic double taxation conventions. The agreement contains provisions on the refusal to provide contractual services where it is reasonable to „conclude, in light of all relevant facts and circumstances, that the granting of this benefit was one of the main purposes of an agreement or transaction that led directly or indirectly to that benefit, unless it is established that, in those circumstances, in those circumstances , the granting of this benefit is consistent with the purpose and purpose of the relevant provisions of the agreement.” The agreement contains a new preamble that defines the purpose and purpose of the agreement to eliminate double taxation, but not to create opportunities for non-taxation or reduced taxation by tax evasion or evasion (including through contractual shopping agreements to free up facilities for the benefit of a resident of a third jurisdiction).
