Withdrawal Agreement Main Points

On October 22, 2019, the House of Commons voted by 329 votes to 299 to grant the revised Withdrawal Agreement (negotiated by Boris Johnson earlier this month) at second reading, but when the accelerated timetable he proposed did not receive the necessary parliamentary support, Johnson announced that the legislation would be suspended. [38] [12] Following the first round of withdrawal negotiations, the UK and the EU set out an agreed approach to the Financial Regulation in the December 2017 Joint Report. The comparison defines the financial obligations that will be covered, the method of calculation on the part of the United Kingdom and the payment schedule. The Withdrawal Agreement transforms the approach set out in this report into a legal text and provides for the continuation of negotiations on the UK`s contributions to the EU budget in the event of an extension of the transition period. An extension would have no impact on financial implementation, which would continue as agreed. The Political Declaration foresees that the UK will be granted adequacy status before the end of the transition period until December 2020 and confirms that the European Commission will start assessing adequacy as soon as possible after the UK`s withdrawal, and that the revised agreement contains fewer tax 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. n”. 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 with tax residence. .