Message to the Senate Transmitting the Tax Convention Concerning the Council of Europe and the Organization for Economic Cooperation and Development

To the Senate of the United States:

I transmit herewith for Senate advice and consent to ratification a Convention on Mutual Administrative Assistance in Tax Matters, among the member States of the Council of Europe and the Organization for Economic Co-operation and Development (OECD), done at Strasbourg, January 25, 1988, and signed by the United States in Paris on June 28, 1989. I also transmit the report of the Department of State on the convention.

Under the convention, Parties will exchange information for the assessment, recovery, and enforcement of tax(es) and tax claims, and to assist in the prosecution of a taxpayer. The United States will exchange information on taxes on income or profits, capital gains, or net wealth imposed by the Federal Government and, in keeping with the U.S. Model Treaty, will not exchange information on State or local taxes.

The taxpayer protections available under the convention are at least as extensive as under the U.S. Model Treaty. Information provided by the United States to another party may not be released to a third party without U.S. consent.

The convention also provides for assistance in the recovery of taxes and for assistance in service of documents. The United States has chosen to reserve on these provisions, in accordance with the option available to all Signatories.

I recommend the Senate give early and favorable consideration to the convention and give its advice and consent to ratification.

George Bush

The White House,

November 8, 1989.