Nature of the services provided to CTH
Based on the contract between CTH and Wiggin (“the Contract”), Wiggin was engaged by CTH to provide advice on English laws in respect of the broadcasting of footage of the Premier League football competition in the United Kingdom (“UK”).
The scope of services is summarised as follows:
- Participate in legal negotiation, drafting and to provide conclusion of the long form Live Package Agreement (“LFA”);
- Participate in legal negotiation, drafting and to provide conclusion of the long form Clip Rights Agreement (“CRA”);
- Provide ancillary advice on the letter of credit (the letter of credit would be prepared by other party and Wiggin would provide advice, if needed, on ad-hoc basis and incidental matters);
- Provide a summary of rights which are granted to CTH in grid form;
- Liaise with another law firm (Siam International Law Firm (“Siam”)) to update them on the progress of all matters, including providing Siam with a copy of all correspondences with the Premier League ; and
- Provide answers on periodic questions from CTH and/or Siam with respect to the LFA and CRA, under the assumption that Wiggin’s scope would not include ensuring Siam are across the entirety of the LFA and CRA or having to consider multiple internal comments or suggested drafting.
All services provided by Wiggin to CTH were performed in the UK and none of the services were performed in Thailand.
Based on the scope of services, it is clear that Wiggin merely provides services by providing professional legal advice to CTH, and no element of the services under the Contract constitutes a royalty as that term is defined in Article 13 of the Thailand - United Kingdom Double Taxation Agreement (“the DTA”), and accordingly the fees derived by Wiggin from the provision of the services are exempt from taxation in Thailand pursuant to Article 8 of the DTA.