Content Of Brexit Withdrawal Agreement

Part 1 of the withdrawal agreement contains « common provisions. » They define their territorial scope, the main definitions and how the withdrawal agreement (and in particular its Community content) should enter into force in the United Kingdom. An important difference from the draft withdrawal agreement in March 2018 is that Article 4 specifies that the entire withdrawal agreement (not just the second part on citizens` rights) must be immediate in the United Kingdom, where its provisions are clear, precise and unconditional. It is essential that the transition period can be extended by a mutual agreement between the EU and the UK. Please note that, in accordance with the agreement, the transitional period can only be extended once until 31 December 2022 and that the United Kingdom and the European Union must make a decision by 1 July 2020 on whether such an extension should be made. In practice, it is unlikely that the EU will raise objections if the UK asks for an extension, so the ball will be in the british Court of Justice`s court on that front. The revised agreement has fewer tax obligations than in its previous version. It states that the parties adhere to the principles of good fiscal governance and the fight against harmful tax practices. However, there is no reference to the Code of Conduct for Corporate Taxation (which was published in the previous version). The political declaration specifies that the contracting parties envisage mutual recognition of the programmes of trusted economic operators, administrative cooperation in customs and VAT and mutual assistance, including the collection of tax and tax debts, and the exchange of information to combat customs fraud and VAT fraud and other illegal activities. The provisions in the Policy Declaration on the Fair Competition, under which future relations must ensure open and fair competition, include the obligation for the parties to comply, at the end of the transition period, with the high common standards in place in the EU and the United Kingdom in areas covered by `relevant tax issues`.