Citation, commencement and effect

1.  This Order may be cited as the Double Taxation Relief (Bank Levy) (Federal Republic of Germany) Order 2012 and comes into force on 14th March 2012.

Double taxation arrangements to have effect

2.  It is declared that—

(a)the arrangements specified in the Convention set out in Part 1 of the Schedule to this Order and the Protocol set out in Part 2 of that Schedule have been made with the Federal Republic of Germany;

(b)the arrangements have been made with a view to affording relief from double taxation in relation to the bank levy and an equivalent foreign levy imposed by the laws of the Federal Republic of Germany; and

(c)it is expedient that those arrangements should have effect.

Article 2

SCHEDULE

EXPLANATORY NOTE

(This note is not part of the Order)

The Schedule to this Order contains a convention and a protocol (“the arrangements”) made between the United Kingdom of Great Britain and Northern Ireland and the Federal Republic of Germany for the avoidance of double taxation in relation to the bank levy and the equivalent German levy. This Order brings the arrangements into effect.

The arrangements aim to eliminate double taxation where a bank is chargeable to the bank levy and the equivalent levy in the Federal Republic of Germany. This is done by allocating the taxing rights that each country has under its domestic law over the same bank or by providing relief from double taxation by way of credit for the other country’s levy.

Article 1 provides for citation and commencement.

Article 2 makes a declaration as to the effect and content of the arrangements.

The arrangements will enter into force on the day of the exchange of the instruments of ratification. They will take effect from 1st January 2011.

The date of entry into force of the arrangements will, in due course, be published in the London, Edinburgh and BelfastGazettes.

In line with government commitments, a Tax Information and Impact Note has not been prepared for this Order as it gives effect to a previously announced policy to enact a double taxation agreement.