
1 
This Order may be cited as the Double
Taxation Relief (Taxes on Income) (Switzerland) Order 1982.
2 
It is hereby declared—
(a) that the arrangements specified in the
Protocol set out in the Schedule to this Order, which vary the arrangements
set out in the Schedule to the 
Double Taxation Relief (Taxes on Income) (Switzerland) Order 1978
have been made with the Swiss Federal Council with a view to affording relief
from double taxation in relation to income tax, corporation tax or capital
gains tax and taxes of a similar character imposed by the laws of Switzerland;
and
(b) that it is expedient that those arrangements
should have effect.
N.E. Leigh
Clerk of the Privy Council

SCHEDULE


PROTOCOL BETWEEN THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN
IRELAND AND THE SWISS CONFEDERATION AMENDING THE CONVENTION FOR THE AVOIDANCE
OF DOUBLE TAXATION WITH RESPECT TO TAXES ON INCOME, SIGNED AT LONDON ON 8
DECEMBER 1977  
The Government of the United Kingdom of
Great Britain and Northern Ireland and the Swiss Federal Council;
 
Desiring to conclude a Protocol to amend
the Convention between the Contracting Parties
for the Avoidance of Double Taxation with respect to Taxes on Income
signed at London on 8 December 1977 (hereinafter referred to as “the Convention”);
Have agreed as follows:  

ARTICLE 1 
Paragraph
3 of Article 10 (Dividends) of the Convention
shall be deleted and replaced by the following:“
3 
However, as long as an individual resident
in the United Kingdom is entitled to a tax credit in respect of dividends
paid by a company resident in the United Kingdom, the following provisions
of this paragraph shall apply instead of the provisions of 
paragraph 2:
(a) 
(i) Dividends derived from a company which
is a resident of the United Kingdom by a resident of Switzerland may be taxed
in Switzerland.
(ii) Where a resident of Switzerland is entitled
to a tax credit in respect of such a dividend under 
sub-paragraph (b) of this paragraph tax may
also be charged in the United Kingdom, and according to the laws 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.
(iii) Where a resident of Switzerland is
entitled to a tax credit in respect of such a dividend under 
sub-paragraph (c) of this paragraph tax may
also be charged in the United Kingdom, and according to the laws 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 5 per cent.
(iv) Except as provided in 
sub-paragraphs (a) (ii) and (a) (iii)
 of this paragraph, dividends derived from
a company which is a resident of the United Kingdom by a resident of Switzerland
who is the beneficial owner of those dividends shall be exempt from any tax
which is chargeable in the United Kingdom on dividends.
(b) A resident of Switzerland who receives
a dividend from a company which is a resident of the United Kingdom shall,
subject to the provisions of sub-paragraph (c)
 and (d)
of this paragraph and provided he is the beneficial owner of the dividend,
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 that dividend,
and to the payment of any excess of that tax credit over his liability to
United Kingdom tax.
(c) The provisions of 
sub-paragraph (b) of this paragraph shall not
apply where the beneficial owner of the dividend is a company which either
alone or together with one or more associated companies controls directly
or indirectly at least 10 per cent of the voting power in the company paying
the dividend. In these circumstances a company which is a resident of Switzerland
and receives a dividend from a company which is a resident of the United Kingdom
shall, provided it is the beneficial owner of the dividend and subject to
the provisions of sub-paragraph (d)
of this paragraph, be entitled to a tax credit equal to one half of the tax
credit to which an individual resident in the United Kingdom would have been
entitled had he received that dividend, and to the payment of any excess of
that tax credit over its liability to United Kingdom tax. For the purpose
of this sub-paragraph 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; and a company shall be deemed to
be controlled by another company if the latter controls more than 50 per cent
of the voting power in the first-mentioned company.
(d) 
(i) The provisions of neither 
sub-paragraph (b) nor sub-paragraph
(c) of this paragraph shall apply unless the
recipient of a dividend shows (if required to do so by the competent authority
of the United Kingdom on receipt of a claim by the recipient to have the tax
credit set against United Kingdom income tax chargeable on him or to have
the excess of the credit over that income tax paid to him) that the shareholding
in respect of which the dividend was paid was acquired by the recipient for bona fide commercial reasons or in the ordinary course
of making or managing investments and it was not the main object nor one of
the main objects of that acquisition to obtain entitlement to the tax credit
referred to in sub-paragraph (b)
or sub-paragraph (c), as
the case may be.
(ii) Switzerland may, on or before 30 June
in any calendar year, give the United Kingdom, through diplomatic channels,
notice of termination of this sub-paragraph and, in such event, it shall cease
to have effect in relation to dividends paid on or after 6 April in the calendar
year next following that in which such notice is given.”

ARTICLE II 

(1) This Protocol shall be ratified and the
instruments of ratification shall be exchanged at Berne as soon as possible.

(2) The Protocol shall enter into force upon
the exchange of instruments of ratification and shall have effect in relation
to dividends paid on or after the date of its entry into force.In witness whereof the undersigned, duly authorised thereto by
their respective Governments, have signed this Protocol.Done in duplicate at London this 5th day of March 1981 in the English
and French languages, both texts being equally authoritative.

For the Government of the United Kingdom of Great Britain and
Northern Ireland:
IAN GILMOUR
For the Swiss Federal Council
CLAUDE CAILLAT

