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HMRC internal manual

Double Taxation Relief Manual

From
HM Revenue & Customs
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DT: Trinidad and Tobago: double taxation agreement, Article 23: Elimination of double taxation

(1) Subject to the provisions of the law of the United Kingdom regarding the allowance as a credit against United Kingdom tax of tax payable in a territory outside the United Kingdom (which shall not affect the general principle hereof):

(a) Trinidad and Tobago tax payable under the laws of Trinidad and Tobago and in accordance with this Convention, whether directly or by deduction, on profits or income from sources within Trinidad and Tobago (excluding in the case of a dividend, tax payable in respect of the profits out of which the dividend is paid) shall be allowed as a credit against any United Kingdom tax computed by reference to the same profits or income by reference to which the Trinidad and Tobago tax is computed;
(b) in the case of a dividend paid by a company which is a resident of Trinidad and Tobago to a company which is a resident of the United Kingdom and which controls directly or indirectly at least 10 per cent of the voting power in the company paying the dividend, the credit shall take into account (in addition to any Trinidad and Tobago tax for which credit may be allowed under the provisions of subparagraph (a) of this paragraph) the Trinidad and Tobago tax payable by the company in respect of the profits out of which such dividend is paid.

(2) For the purposes of paragraph (1) of this Article, the term `Trinidad and Tobago tax payable` shall be deemed to include any amount which would have been payable as Trinidad and Tobago tax for any year but for an exemption from, or reduction of, tax granted for that year or any pan thereof under any of the following provisions of Trinidad and Tobago law:

(a)

(i) The Fiscal Incentives Act, 1979 (Act No. 22 of 1979);
(ii) Housing Act, 1962;
(iii) Hotel Development Act, 1962;

so far as they were in force in, and have not been modified since, the date of signature of this Convention, or have been modified only in minor respects so as not to affect their general character; or
(b) any other provision which may subsequently be made granting an exemption from or reduction of tax which is agreed by the competent authorities of the Contracting States to be of a substantially similar character, if it has not been modified thereafter or has been modified only in minor respects so as not to affect its general character;
Provided:
(c) that relief from United Kingdom tax shall not be given by virtue of this paragraph in respect of income from any source if the income arises in a period starting more than ten years after the exemption from, or reduction of, Trinidad and Tobago tax was first granted in respect of that source.

(3) Subject to the provisions of the law of Trinidad and Tobago regarding the allowance as a credit against Trinidad and Tobago tax of tax payable in a territory outside Trinidad and Tobago (which shall not affect the general principle hereof), the United Kingdom tax payable under the laws of the United Kingdom and in accordance with this Convention (excluding in the case of a dividend, tax payable on the profits or income of the company paying the dividend) whether by deduction from, or under a computation measured by reference to, profits or income from sources within the United Kingdom shall be allowed as a credit against any Trinidad and Tobago tax computed by reference to the same profits or income by reference to which the United Kingdom tax is computed. Where such income is a dividend paid by a company which is a resident of the United Kingdom to a company which is a resident of Trinidad and Tobago and which controls directly or indirectly not less than 10 per cent of the voting power in the United Kingdom company, the credit shall take into account (in addition to any United Kingdom tax payable in respect of the dividend) the United Kingdom tax payable by the company in respect of its profits.

(4) For the purposes of paragraphs (1) and (3) of this Article profits and income owned by a resident of a Contracting State which may be taxed in the other Contracting State in accordance with this Convention shall be deemed to arise from sources in that other Contracting State.

(5) Nothing in this Article shall entitle a person who is a resident of a Contracting State to credit against tax of that Contracting State of tax of the other Contracting State if the terms of the transactions giving rise to the profits on which the tax of the other Contracting State is payable are not such as might be expected in a bona fide commercial transaction and if they have as their main object or one of their main objects, the obtaining of that credit.