from the president of the united statesu.s. government printing office washington : 1 19–112...

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U.S. GOVERNMENT PRINTING OFFICE WASHINGTON : 1 19–112 SENATE " ! 112TH CONGRESS 2d Session TREATY DOC. 2012 112–8 TAX CONVENTION WITH CHILE MESSAGE FROM THE PRESIDENT OF THE UNITED STATES TRANSMITTING THE CONVENTION BETWEEN THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE GOVERNMENT OF THE REPUBLIC OF CHILE FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME AND CAPITAL, SIGNED IN WASHINGTON ON FEBRUARY 4, 2010, WITH A PROTOCOL SIGNED THE SAME DAY, AS CORRECTED BY EXCHANGES OF NOTES EFFECTED FEB- RUARY 25, 2011, AND FEBRUARY 10 AND 21, 2012, AND A RE- LATED AGREEMENT EFFECTED BY EXCHANGE OF NOTES (THE ‘‘RELATED AGREEMENT ’’) ON FEBRUARY 4, 2010 MAY 17, 2012.—Treaty was read the first time, and together with the accompanying papers, referred to the Committee on Foreign Relations and ordered to be printed for the use of the Senate VerDate Mar 15 2010 08:13 May 18, 2012 Jkt 019112 PO 00000 Frm 00001 Fmt 4012 Sfmt 4012 E:\HR\OC\TD008.XXX TD008 E:\Seals\Congress.#13 jbell on DSK7SPTVN1PROD with REPORTS

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Page 1: FROM THE PRESIDENT OF THE UNITED STATESu.s. government printing office washington : 1 19–112 " ! senate 112th congress 2d session treaty doc. 2012 112–8 tax convention with chile

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON :

1

19–112

SENATE " ! 112TH CONGRESS 2d Session

TREATY DOC.

2012

112–8

TAX CONVENTION WITH CHILE

MESSAGE

FROM

THE PRESIDENT OF THE UNITED STATES TRANSMITTING

THE CONVENTION BETWEEN THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE GOVERNMENT OF THE REPUBLIC OF CHILE FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME AND CAPITAL, SIGNED IN WASHINGTON ON FEBRUARY 4, 2010, WITH A PROTOCOL SIGNED THE SAME DAY, AS CORRECTED BY EXCHANGES OF NOTES EFFECTED FEB-RUARY 25, 2011, AND FEBRUARY 10 AND 21, 2012, AND A RE-LATED AGREEMENT EFFECTED BY EXCHANGE OF NOTES (THE ‘‘RELATED AGREEMENT ’’) ON FEBRUARY 4, 2010

MAY 17, 2012.—Treaty was read the first time, and together with the accompanying papers, referred to the Committee on Foreign Relations and ordered to be printed for the use of the Senate

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Page 3: FROM THE PRESIDENT OF THE UNITED STATESu.s. government printing office washington : 1 19–112 " ! senate 112th congress 2d session treaty doc. 2012 112–8 tax convention with chile

(III)

LETTER OF TRANSMITTAL

THE WHITE HOUSE, May 17, 2012. To the Senate of the United States:

I transmit herewith, for the advice and consent of the Senate to their ratification, the Convention between the Government of the United States of America and the Government of the Republic of Chile for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital, signed in Washington on February 4, 2010, with a Protocol signed the same day, as corrected by exchanges of notes effected February 25, 2011, and February 10 and 21, 2012, and a related agreement effected by exchange of notes (the ‘‘related Agreement’’) on Feb-ruary 4, 2010. I also transmit for the information of the Senate the report of the Department of State, which includes an Overview of the proposed Convention, the Protocol, and related Agreement.

The proposed Convention, Protocol, and related Agreement (to-gether ‘‘proposed Treaty’’) would be the first bilateral income tax treaty between the United States and Chile. The proposed Treaty contains comprehensive provisions designed to address ‘‘treaty shopping,’’ which is the inappropriate use of a tax treaty by resi-dents of a third country, and provides for a robust exchange of in-formation between the tax authorities in the two countries to facili-tate the administration of each country’s tax laws.

I recommend that the Senate give early and favorable consider-ation to the proposed Treaty and give its advice and consent to the ratification thereof.

BARACK OBAMA.

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(V)

LETTER OF SUBMITTAL

DEPARTMENT OF STATE, Washington, March 22, 2012.

The PRESIDENT, The White House.

THE PRESIDENT: I have the honor to submit to you, with a view to their transmission to the Senate for advice and consent to ratifi-cation, the Convention between the Government of the United States of America and the Government of the Republic of Chile for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital, signed at Washington February 4, 2010, together with a Protocol to the Con-vention signed the same day, as corrected by exchanges of notes ef-fected February 25, 2011, and February 10 and 21, 2012, and a re-lated agreement effected by exchange of notes on February 4, 2010 (‘‘related Agreement’’).

The proposed Convention, its Protocol, and the related Agree-ment (together ‘‘proposed Treaty’’) would be the first bilateral in-come tax treaty between the United States and Chile. The proposed Treaty contains comprehensive provisions designed to address ‘‘treaty shopping,’’ which is the inappropriate use of a tax treaty by residents of a third country. The proposed Treaty also provides for robust exchange of information between tax authorities in the two countries to facilitate the administration of each country’s tax laws. The proposed Treaty generally follows the current U.S. Model In-come Tax Convention and the current Organization for Economic Cooperation and Development standards for exchange of informa-tion for tax purposes. An overview of key provisions of the proposed Treaty is enclosed with this report.

The proposed Convention is self-executing. I recommend that the proposed Treaty be transmitted to the Senate for its advice and consent to ratification. The Department of the Treasury and the Department of State cooperated in the negotiation of the proposed Treaty, and the Department of the Treasury joins the Department of State in recommending that the proposed Treaty be transmitted to the Senate as soon as possible for its advice and consent to rati-fication.

Respectfully submitted, HILLARY RODHAM CLINTON.

Enclosures: As stated.

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