
1 
This Order may be cited as the 
Double Taxation Relief (Taxes on Income) (France) Order 1973.

2 
It is hereby declared—
(a) that the arrangements specified in the
Supplementary Protocol set out in the Schedule to this Order have been made
with the Government of France with a view to affording relief from double
taxation in relation to income tax or corporation tax and taxes of a similar
character imposed by the laws of France varying the arrangements set out in
the Schedule to the Double
Taxation Relief (Taxes on Income) (France) Order 1968 as amended by the arrangements set out
in the Schedule to the Double
Taxation Relief (Taxes on Income) (France) Order 1971; and
(b) that it is expedient that those arrangements
should have effect.
W.G. Agnew

SCHEDULE


SUPPLEMENTARY
PROTOCOL AMENDING THE CONVENTION BETWEEN THE UNITED KINGDOM OF GREAT BRITAIN
AND NORTHERN IRELAND AND FRANCE FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE
PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME, SIGNED AT LONDON
ON 22 MAY 1968, AS MODIFIED BY THE PROTOCOL SIGNED AT LONDON ON 10 FEBRUARY
1971 
The Government of the United Kingdom of Great Britain
and Northern Ireland and the Government of the French Republic;

Desiring to amend the Convention
between the United Kingdom of Great Britain and Northern Ireland and France
for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion
with respect to Taxes on Income, signed at London on 22 May 1968,
as modified by the Protocol signed at London on 10
February 1971 (hereinafter referred to as “the Convention”);
Have agreed as follows:   

ARTICLE I
1 
Paragraph (5) of Article
6of the Convention
shall be amended by replacing the words “in 
Article 9 (dividends) excluding 
paragraph (5)” by the words 
“in Article 9
(dividends) excluding paragraph (8)”
.
2 
Article 9 
of the Convention shall be deleted and replaced
by the following:“
Article 9
A
1 

(a) Dividends paid by a company which is
a resident of the United Kingdom to a resident of France may be taxed in France.

(b)  Where a resident of France is entitled
to a tax credit in respect of such a dividend under 
paragraph (2) of this Article tax may also
be charged in the United Kingdom, and according to the law of the United Kingdom,
on the aggregate of the amount or value of that dividend and the amount of
that tax credit at a rate not exceeding 15 per cent.
(c)  Except as provided in 
sub-paragraph (b) of this paragraph, dividends
which are paid by a company which is a resident of the United Kingdom to a
resident of France who is subject to tax in respect thereof in France shall
be exempt from any tax in the United Kingdom which is chargeable on dividends.

2 
A resident of France who receives dividends
from a company which is a resident of the United Kingdom shall, subject to
the provisions of paragraphs (3)
and (4) of this Article and provided that he
is subject to tax in respect of those dividends in France, be entitled to
the tax credit in respect thereof to which an individual resident in the United
Kingdom would have been entitled had he received those dividends, and to the
payment of any excess of that tax credit over his liability to United Kingdom
tax.
3 
The provisions of 
paragraph (2) of this Article shall not apply
where the recipient of the dividend is a company which controls the company
paying the dividend.
4 
If the recipient of the dividend is a company
which owns 10 per cent or more of the class of shares in respect of which
the dividends are paid then paragraph (2)
of this Article shall not apply to the dividends to the extent that they can
have been paid only out of income which accrued to the company paying the
dividends in a period ending 12 months or more before the relevant date. For
the purposes of this paragraph the term “relevant
date” means the date on which the
recipient of the dividends became the owner of 10 per cent or more of the
class of shares in question.
Provided that this paragraph shall not apply if the shares
were acquired for bona fide commercial reasons and not primarily for the purposes
of securing the benefit of this Article.
B
5 
 Dividends paid by a company which is a resident
of France to a resident of the United Kingdom may be taxed in the United Kingdom.
Such dividends may also be taxed in France but provided the recipient of the
dividends is subject to tax in respect thereof in the United Kingdom the tax
so charged shall not exceed:
(a) 5 per cent of the gross amount of the
dividends if the recipient is a company which controls the company paying
the dividend;
(b) in all other cases 15 per cent of the
gross amount of the dividends.
6 

(a) A resident of the United Kingdom who
receives from a company which is a resident of France dividends which, if
received by a resident of France, would entitle such resident to a fiscal
credit (avoir fiscal), shall be entitled
to a payment from the French Treasury equal to such credit (
avoir fiscal) subject to the deduction of the tax provided for in 
sub-paragraph (b) of paragraph (5) of this
Article.
(b)  The provisions of 
sub-paragraph (a) of this paragraph shall apply
only to a resident of the United Kingdom, being either: 
(i)  an individual; or
(ii)  a company which: (aa) does not control the company paying
the dividends referred to in sub-paragraph (a)
 of this paragraph; and(bb) is not entitled in computing the amount
of credit to be allowed against United Kingdom tax in respect of tax payable
in a territory outside the United Kingdom to take into account the French
tax payable on the profits out of which the said dividends are paid.
(c) The provisions of 
sub-paragraph (a) of this paragraph shall not
apply if the recipient of the payment from the French Treasury provided for
under sub-paragraph (a)
of this paragraph is not subject to United Kingdom tax in respect of that
payment.
(d)  Payments from the French Treasury provided
for under sub-paragraph (a)
of this paragraph shall be deemed to be dividends for the purposes of this
Convention.
7 

(a)  Where the prepayment (
précompte) is levied in respect of dividends paid by a company
which is a resident of France to a resident of the United Kingdom who is not
entitled to the payment from the French Treasury referred to in 
paragraph (6) of this Article with respect
to such dividends, that resident of the United Kingdom shall be entitled to
the refund of the prepayment, subject to the deduction of tax with respect
to the refunded amount in accordance with paragraph
(5) of this Article
(b) Amounts refunded under the provisions
of sub-paragraph (a)
of this paragraph shall be deemed to be dividends for the purposes of this
Convention.
C
8 
The provisions of paragraphs (1)(2)
(5) and (6) of this Article shall not apply
if the recipient of the dividends being a resident of a Contracting State,
has in the other Contracting State, of which the company paying the dividends
is a resident, a permanent establishment with which the holding by virtue
of which the dividends is paid is effectively connected. In this case, the
provisions of Article 6
shall apply.
9 
 The term “dividends”
 as used in this Article means income
from shares, jouissance shares or jouissance
rights, mining shares, founders' shares or other rights, not being debt-claims,
participating in profits, as well as income treated as a distribution by the
taxation law of the State of which the company making the distribution is
a resident.
10 
 For the purposes of this Article, a company
shall be deemed to control another company when either alone or together with
one or more associated companies it controls directly or indirectly at least
10 per cent of the voting power in that other company, and two companies shall
be deemed to be associated if one is controlled directly or indirectly by
the other, or both are controlled directly or indirectly by a third company.”
ARTICLE IIEach of the Contracting States shall notify to
the other the completion of the procedure required by its law for the bringing
into force of this Supplementary Protocol. This Supplementary Protocol shall
enter into force on the date of the later of these notifications and shall
thereupon have effect in relation to dividends paid on or after 6 April 1973.


ARTICLE IIIThis Supplementary Protocol shall remain in force
as long as the Convention remains in force.
In witness
whereof the undersigned, duly authorised thereto by their respective Governments,
have signed this Supplementary Protocol.
Done in duplicate
at London this 14 day of May, 1973 in the English and French languages, both
texts being equally authoritative.

For the Government of the United Kingdom of Great Britain and
Northern Ireland:
ANTHONY ROYLE
For the Government of the French Republic:
J. DE BEAUMARCHAIS

