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What Are The Main Points Of The Withdrawal Agreement

Otherwise, the backstop solution for Ireland and Northern Ireland would come into force, which aims to prevent a hard border. The backstop, which consists of `a single customs territory between the Union and the United Kingdom`, applies from the end of the transition period `unless and until. a subsequent agreement becomes applicable”. The UK will pay as a member for the entire duration of the current long-term budget until the end of 2020. After 2020, it will bring what remains to be liquidated under the long-term budget or previous commitments. In addition, the Withdrawal Agreement regulates the UK`s contributions to the EU budget. The deal means the UK will pay as a member for the current long-term entire budget by the end of 2020. The revised agreement contains fewer tax law obligations than the previous version. It states that the parties are committed to the principles of good governance in the field of taxation and the fight against harmful tax practices. However, there is no reference to the Code of Conduct on Corporate Taxation (which was included in the previous version). The political declaration states that the parties “intend to consider mutual recognition of trusted economic operator programmes, administrative cooperation in customs and VAT matters and mutual assistance, including in the recovery of tax and duty claims, and through the exchange of information to combat customs and VAT fraud and other illegal activities. shoot.” The provisions of the Political Declaration on a Level Playing Field, which stipulate that the future relationship must ensure open and fair competition, contain an obligation for the parties to maintain, at the end of the transition period, the common high standards in force in the Union and the United Kingdom in areas which include, among others, “relevant tax issues”.

There is a specific protocol on Gibraltar, with an agreement between the United Kingdom and Spain on cooperation to create full transparency in tax matters in order to combat fraud, smuggling and money laundering and to resolve conflicts of tax residence. The United Kingdom also requires Gibraltar to comply with G20 and OECD standards on sound financial management, transparency, exchange of information and, in particular, the economic substance criteria set by the OECD Forum on Harmful Tax Practices. These provisions shall expire at the end of the transitional period. At the end of the transition period, the UK will lose access to tax directives and rely on its network of double taxation treaties to determine whether withholding taxes are likely to apply to incoming dividends, interest and royalties. The UK has already started to renegotiate some conventions and in cases where there is likely to be a withholding tax problem, this will be a priority. Part Six sets out the institutional arrangements underlying the agreement and how VA disputes are to be resolved. The main changes to the sixth part of the March 2018 draft concern disputes relating to the agreement itself, which the Commission had initially proposed to settle by the CJEU if it could not be resolved by the Joint Committee. Rather, the November draft proposes in article 170 that all disputes that are not resolved by the Joint Committee be brought before an independent arbitral tribunal that will make a binding decision on the dispute. .

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