S.I. No. 349/1987:

DOUBLE TAXATION RELIEF (AIR TRANSPORT UNDERTAKINGS AND THEIR EMPLOYEES) (UNION OF SOVIET SOCIALIST REPUBLICS) ORDER, 1987.

DOUBLE TAXATION RELIEF (AIR TRANSPORT UNDERTAKINGS AND THEIR EMPLOYEES) (UNION OF SOVIET SOCIALIST REPUBLICS) ORDER, 1987.

WHEREAS it is enacted by section 361 (1) of the Income Tax Act, 1967 (No. 6 of 1967), as amended by section 86 of the Finance Act, 1974 (No. 27 of 1974), section 38 (1) of the Capital Gains Tax Act, 1975 (No. 20 of 1975), section 166 of the Corporation Tax Act, 1976 (No. 7 of 1976), and section 47 (4) of the Finance Act, 1983 (No. 15 of 1983), that if the Government by order declare that arrangements specified in the order have been made with the government of any territory outside the State in relation to affording relief from double taxation in respect of income tax, corporation tax or capital gains tax and any taxes of a similar character, imposed by the laws of the State or by the laws of that territory, and that it is expedient that those arrangements should have the force of law, the arrangements shall, notwithstanding anything in any enactment other than section 47 of the Finance Act, 1983 , have the force of law:

AND WHEREAS it is further enacted by section 361 (6) of that Act that where such an order is proposed to be made, a draft thereof shall be laid before Dáil Éireann and the order shall not be made until a resolution approving of the draft has been passed by Dáil Éireann:

AND WHEREAS a draft of this Order has been laid before Dáil Éireann and a resolution approving of the draft has been passed by Dáil Éireann:

NOW, the Government, in exercise of the powers conferred on them by section 361 of the Income Tax Act, 1967 (No. 6 of 1967), as amended by section 38 (1) of the Capital Gains Tax Act, 1975 (No. 20 of 1975), section 166 of the Corporation Tax Act, 1976 (No. 7 of 1976), and section 47 (4) of the Finance Act, 1983 (No. 15 of 1983), hereby order as follows:

1. This Order may be cited as the Double Taxation Relief (Air Transport Undertakings and their Employees) (Union of Soviet Socialist Republics) Order, 1987.

2. It is hereby declared--

( a ) that the arrangements specified in the Agreement set out in the Schedule to this Order have been made with the Government of the Union of Soviet Socialist Republics in relation to affording relief from double taxation in respect of income tax, corporation tax or capital gains tax and any taxes of a similar character, imposed by the laws of the State or by the laws of the Union of Soviet Socialist Republics, and

( b ) that it is expedient that those arrangements should have the force of law.

SCHEDULE

AGREEMENT BETWEEN THE GOVERNMENT OF IRELAND AND THE GOVERNMENT OF THE UNION OF SOVIET SOCIALIST REPUBLICS FOR THE AVOIDANCE OF DOUBLE TAXATION OF AIR TRANSPORT UNDERTAKINGS AND THEIR EMPLOYEES

The Government of Ireland and the Government of the Union of Soviet Socialist Republics (hereinafter referred to as "the Contracting Parties");

Desiring to conclude an Agreement for the avoidance of double taxation in respect of the profits of air transport undertakings and the remuneration of their officers and employees;

Have agreed as follows:

ARTICLE 1

In this Agreement--

( a ) the terms "one of the Contracting States" and "the other Contracting State" mean Ireland or the Union of Soviet Socialist Republics as the context requires, and

( b ) the term "year" means a period of twelve months beginning on 1 January in that year.

ARTICLE 2

All profits, income and capital gains derived by an air transport undertaking of one of the Contracting States from the provision and sale of air transport and from associated activities shall be exempt in the other Contracting State from all the taxes of that State which are or may become chargeable on profits, income and capital gains.

ARTICLE 3

1. Salaries, wages and other remuneration earned by a citizen of the Union of Soviet Socialist Republics in respect of services rendered to a Soviet air transport undertaking as an officer or employee posted to Ireland shall be exempt in Ireland from income tax and from any other tax which is or may become chargeable on income.

2. Salaries, wages and other remuneration earned by a citizen of Ireland in respect of services rendered to an Irish air transport undertaking as an officer or employee posted to the Union of Soviet Socialist Republics shall be exempt in the Union of Soviet Socialist Republics from income tax and from any other tax which is or may become chargeable on income.

ARTICLE 4

Each of the Contracting Parties shall notify the other in writing, through the diplomatic channel, of the completion of the procedures required by its law to bring this Agreement into force. The Agreement shall enter into force on the date of the later of these notifications and shall thereupon have effect as regards profits, income or capital gains arising on or after the date of the commencement of the carrying on of the operations including transit operations of an air transport undertaking of one of the Contracting States in or through the other Contracting State.

ARTICLE 5

This Agreement shall continue in effect indefinitely but either Contracting Party may, on or before 30 June in any year after the year 1990, give notice of termination to the other Contracting Party and in such event the present Agreement shall cease to be effective as regards profits, income and capital gains arising on or after 1 January of the year next following that in which the notice is given.

IN WITNESS WHEREOF the undersigned, being duly authorised thereto by their respective Governments, have signed this Agreement.

DONE in duplicate at Dublin this 17th day of December 1986, in the English and Russian languages, both texts being equally authoritative.

GIVEN under the Official Seal of the Government, this 18th day of December, 1987.

CHARLES J. HAUGHEY,

Taoiseach.

EXPLANATORY NOTE.

This Order gives the force of law to the Agreement with the Union of Soviet Socialist Republics which is set out in the Schedule.

The provisions secure that all profits, income and capital gains of an air transport undertaking of one country are exempt from tax in the other country.

Remuneration derived by a citizen of one country from an employment with an air transport undertaking of that country exercised in the other country is under the arrangements also exempt from tax in that other country.

The Agreement is to have effect on or after the date of the commencement of operations of an air transport undertaking of one country in or through the other country.