法律英语词汇“double taxation relief”的翻译、意思、用法、释义-法律词典

double taxation relief
A number of different mechanisms designed to either reduce or avoid multiple tax charges where the same item of income (or the same gain) is liable to taxation by more than one jurisdiction. The USA taxes income of US citizens wherever it arises and wherever the citizen is resident. The UK taxes income wherever it arises to a person resident in the UK, and taxes income arising in the UK to persons resident anywhere in the world. Other jurisdictions have similarly ambitious practices in raising tax revenue. It is, thus, commonplace for one source of income to be potentially subject to more than one tax charge.

Under the UK tax system, several different methods of double taxation relief are available:

1. relief is given under a treaty between the UK and another jurisdiction by a treaty declaring that income of a specified nature is exempt from tax in one of the two jurisdiction (authorized by Taxation (International and Other Provisions) Act 2010 s 6);

2. credit against UK tax is given by such a treaty for foreign tax paid;

3. where there is no treaty, or no provision in a treaty, a system of “unilateral relief” allows the taxpayer to claim a credit for the foreign tax paid against the UK tax liability (Taxation (International and Other Provisions) Act 2010 s 18);

4. any foreign tax paid that is not otherwise relieved is treated as an expense in calculating the income subject to UK tax (Taxation (International and Other Provisions) Act 2010 s112(1)(a)). This is of particular benefit when, under UK rules, the foreign source generates a loss.

Equivalent provisions apply for tax on capital gains. The UK has double taxation treaties for income tax/corporation tax with 131 countries, which is more than any other country. Interpretation of double taxation relief treaties has given difficulty to the courts. The Vienna Convention on the Law of Treaties 1969 (Article 31) requires that a treaty be interpreted in good faith and that terms in the treaty be interpreted in the light of their object and purpose. These are concepts that are inherently foreign to English law and have led to decisions such as Sportsman v IRC [1998] STC (SCD) 289, in which it was held that a treaty should not be interpreted so as to allow a taxpayer to pay no tax in either country.

The Inheritance Tax Act 1984 s 158 provides for double tax treaties for inheritance tax. Currently, the UK has treaties for tax on an estate at death with only ten countries.