ARTICLE XXI 24 (1) The nationals of one of the Contracting Parties shall not, while resident in the territory of the other Contracting Party, be subjected therein to other or more burdensome taxes than are the nationals of such other Contracting Party resident in its territory. (2) The term "nationals" as used in this Article means (a) in relation to the United Kingdom, all British subjects and British protected persons, from the United Kingdom or any territory with respect to which the present Convention is applicable by reason of extension made by the United Kingdom under Article XXII; and (b) in relation to the United States, United States citizens, and all persons under the protection of the United States, from the United States or any territory to which the present Convention is applicable by reason of extension made by the United States under Article XXII; and includes all legal persons, partnerships and associations deriving their status as such from, or created or organized under, the laws in force in any territory of the Contracting Parties to which the present Convention applies. (3) In this Article the word "taxes" means taxes of every kind or description, whether national, Federal, state, provincial or municipal. ARTICLE XXII 25 (1) Either of the Contracting Parties may, at the time of exchange of instruments of ratification or thereafter while the present Convention continues in force, by a written notification of extension given to the other Contracting Party through diplomatic channels, declare its desire that the operation of the present Convention shall extend to all or any of its colonies, overseas territories, protectorates, or territories in respect of which it exercises a mandate, which impose taxes substantially similar in character to those which are the subject of the present Convention. The present Convention shall apply to the territory or territories named in such notification on the date or dates specified in the notification (not being less than sixty days from the date of the notification) or, if no date is specified in respect of any such territory, on the sixtieth day after the date of such notification, unless, prior to the date on which the Convention would otherwise become applicable to a particular territory, the Contracting Party to whom notification is given shall have informed the other Contracting Party in writing through diplomatic channels that it does not accept such notification as to that territory. In the absence "Art. XXI replaced by supplementary protocol of Mar. 17, 1966 (ibid.). * Art. XXII, para. (1), amended by supplementary protocol of May 25, 1954 (6 UST 37; TIAS 3165). of such extension, the present Convention shall not apply to any such territory.20 (2) At any time after the expiration of one year from the entry into force of an extension under paragraph (1) of this Article, either of the Contracting Parties may, by written notice of termination given to the other Contracting Party through diplomatic channels, terminate the application of the present Convention to any territory to which it has been extended under paragraph (1), and in such event the present Convention shall cease to apply, six months after the date of such notice, to the territory or territories named therein, but without affecting its continued application to the United States, the United Kingdom or to any other territory to which it has been extended under paragraph (1) hereof. (3) In the application of the present Convention in relation to any territory to which it is extended by notification by the United States or the United Kingdom references to the "United States" or, as the case may be, the "United Kingdom" shall be construed as references to that territory. (4) The termination in respect of the United States or the United Kingdom of the present Convention under Article XXIV or of Article VI shall, unless otherwise expressly agreed by both Contracting Parties, terminate the application of the present Convention or, as the case may be, that Article to any territory to which the Convention has been extended by the United States or the United Kingdom. (5) The provisions of the preceding paragraphs of this Article shall apply to the Channel Islands and the Isle of Man as if they were colonies of the United Kingdom. ARTICLE XXIII (1) The present Convention shall be ratified and the instruments of ratification shall be exchanged at Washington as soon as possible. (2) Upon exchange of ratifications, the present Convention shall have effect (a) as respects United States tax, for the taxable years beginning on or after the first day of January 1945; (b) (i) as respects United Kingdom income tax, for the year of assessment beginning on the 6th day of April 1945 and subsequent years; (ii) as respects United Kingdom surtax, for the year of assessment beginning on the 6th day of April 1944 and subsequent years; and (iii) as respects United Kingdom excess profits tax and national defence contribution, for any chargeable accounting period beginning on or after the first day of April 1945 and for the unexpired portion of any chargeable accounting period current at that date. 28 For an agreement of Aug. 19, 1957, and Dec. 3, 1958, relating to application of convention to specified British territories, see 9 UST 1459; TIAS 4141. For an agreement of Dec. 31, 1963, continuing convention in force for Southern Rhodesia, Northern Rhodesia, and Nyasaland individually, see 14 UST 1899; TIAS 5501. ARTICLE XXIV 27 (1) The present Convention shall continue in effect indefinitely but either of the Contracting Parties may, on or before the 30th day of June in any year after the year 1946, give to the other Contracting Party, through diplomatic channels, notice of termination and, in such event, the present Convention shall cease to be effective (a) as respects United States tax, for the taxable years beginning on or after the first day of January in the year next following that in which such notice is given; (b)(i) as respects United Kingdom income tax, for any year of assessment beginning or or after the 6th day of April in the year next following that in which such notice is given; (ii) as respects United Kingdom surtax, for any year of assessment beginning on or after the 6th day of April in the year in which such notice is given; and (iii) as respects United Kingdom excess profits tax and national defence contribution, for any chargeable accounting period beginning on or after the first day of April in the year next following that in which such notice is given and for the unexpired portion of any chargeable accounting period current at that date. (2) The termination of the present Convention or of any Article thereof shall not have the effect of reviving any treaty or arrangement abrogated by the present Convention or by treaties previously concluded between the Contracting Parties. IN WITNESS WHEREOF the above-mentioned Plenipotentiaries have signed the present Convention and have affixed thereto their seals. DONE at Washington, in duplicate, on the 16th day of April, 1945. For the Government of the United States of America: E. R. STETTINIUS, Jr. [SEAL] For the Government of the United Kingdom of Great Britain and Northern Ireland: HALIFAX [SEAL] PROTOCOL The Government of the United States of America and the Government of the United Kingdom of Great Britain and Northern Ireland, Desiring to conclude a supplementary Protocol modifying in certain respects the Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income which was signed at Washington on April 16, 1945, Have agreed as follows: "Art. XXIV replaced by supplementary protocol of Mar. 17, 1966 (17 UST 1254; TIAS 6089). ARTICLE I Paragraph (3) of Article XI of the Convention of April 16, 1945 for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income shall be deemed to be deleted and of no effect. ARTICLE II This Protocol, which shall be regarded as an integral part of the said Convention, shall be ratified and the instruments of ratification thereof shall be exchanged at Washington. IN WITNESS WHEREOF the undersigned Plenipotentiaries, being authorized thereto by their respective Governments, have signed this Protocol and have affixed thereto their seals. DONE at Washington, in duplicate, this sixth day of June, 1946. For the Government of the United States of America: JAMES F. BYRNES Secretary of State of the United States of America [SEAL] For the Government of the United Kingdom of Great Britain DOUBLE TAXATION: ESTATE TAXES Convention signed at Washington April 16, 1945 Senate advice and consent to ratification June 1, 1946 Proclaimed by the President of the United States July 30, 1946 60 Stat. 1391; Treaties and Other International Acts Series 1547 The Government of the United States of America and the Government of the United Kingdom of Great Britain and Northern Ireland, Desiring to conclude a convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on the estates of deceased persons, Have appointed for that purpose as their respective Plenipotentiaries: The Government of the United States of America: Mr. Edward R. Stettinius, Jr., Secretary of State, and The Government of the United Kingdom of Great Britain and Northern Ireland: The Right Honorable the Earl of Halifax, K.G., Ambassador Extraordinary and Plenipotentiary in Washington, Who, having exhibited their respective full powers, found in good and due form, have agreed as follows: ARTICLE I (1) The taxes which are the subject of the present Convention are: (a) In the United States of America, the Federal estate tax, and (b) In the United Kingdom of Great Britain and Northern Ireland, the estate duty imposed in Great Britain. (2) The present Convention shall also apply to any other taxes of a substantially similar character imposed by either Contracting Party subsequently |