
1 
This Order may be cited as the Double Taxation Relief (Taxes on Income) (Faroe Islands) Order, 1961.
2 
It is hereby declared—
(a) that the arrangements specified in the Schedule to this Order for the extension to the Faroe Islands of the arrangements specified in the Convention set out in the Schedule to the Double Taxation Relief (Taxes on Income) (Denmark) Order, 1950, have been made with the Government of the Kingdom of Denmark on behalf of the Government of the Faroe Islands with a view to affording relief from double taxation in relation to income tax or profits tax and taxes of a similar character imposed by the laws of the Faroe Islands; and
(b) that it is expedient that those arrangements should have effect.
W.G. Agnew

SCHEDULE

(1) The provisions of the Convention set out in the Schedule to the Double Taxation Relief (Taxes on Income) (Denmark) Order, 1950, shall, notwithstanding paragraph 1(b) of Article II of the said Convention, apply also to the Faroe Islands, except where the context otherwise requires,
(a) as if the taxes concerned in the case of the Faroe Islands were the Faroese tax corresponding to the Danish national income tax (the Faroese “Landsskat”) (hereinafter referred to as “Faroese tax”) and in the case of the United Kingdom of Great Britain and Northern Ireland the income tax (including surtax) and the profits tax; and
(b) as if the reference to “the date of signature of the present Convention” were a reference to the 31st day of October, 1960.
(2) The present extension shall come into force when the last of those measures shall have been taken in the United Kingdom necessary to give the extension the force of law in the United Kingdom, and shall thereupon have effect—
(a) in the United Kingdom:
() as respects income tax (including surtax) for any year of assessment beginning on or after the 6th of April, 1958; as respects profits tax in respect of the following profits:—

(i) profits by reference to which income tax is, or but for the present application of the Convention would be, chargeable for any year of assessment beginning on or after the 6th of April, 1958;
(ii) other profits being profits by reference to which income tax is not chargeable, but which arise in any chargeable accounting period beginning on or after the 1st of April, 1958, or are attributable to so much of any chargeable accounting period falling partly before and partly after that date as falls after that date;
(b) in the Faroe Islands:
() as respects Faroese tax for any taxation year beginning on or after the 1st of April, 1958.
(3) The Government of the United Kingdom shall inform the Government of the Kingdom of Denmark in writing when the last of the measures necessary, as indicated in paragraph (2) above, have been taken in the United Kingdom.
(4) The present extension shall remain in force indefinitely and shall continue to remain in force notwithstanding that the Convention may have been terminated by either of the High Contracting Parties in accordance with Article XXII thereof. Either High Contracting Party may, however, on or before the 30th of June in any calendar year not earlier than the year 1961, give to the other through the diplomatic channel written notice of termination of the present extension, and in such event it shall cease to have effect—
(a) in the United Kingdom:
() as respects income tax (including surtax) for any year of assessment beginning on or after the 6th of April in the calendar year next following that in which the notice is given; as respects profits tax in respect of the following profits:—


(i) profits by reference to which income tax is chargeable for any year of assessment beginning on or after the 6th of April in the calendar year next following that in which the notice is given;
(ii) other profits being profits by reference to which income tax is not chargeable, but which arise in any chargeable accounting period beginning on or after the 1st of April in the next following calendar year or are attributable to so much of any chargeable accounting period falling partly before and partly after that date as falls after that date;
(b) in the Faroe Islands:
() as respects Faroese tax for any taxation year beginning on or after the 1st of April in the calendar year next following that in which the notice is given.
