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Procedimiento de aprobación e historia de los CDIs de los Estados Unidos, por la Profesora Allison Christians
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The U.S. Tax Treaty Network: Past and Present The Model Treaties: Blueprints for Global Tax CoordinationTechnical Application of Tax Treaties: Taxing ProfitsCritical Analysis and the Future of Tax Treaties
The U.S. Tax Treaty Network: Past and Present
How U.S. Tax Treaties are MadeHistorical Development of the U.S. Tax Treaty NetworkCurrent Developments
Step 1. Obtain Authority.
Treaties are entered into by the Executive Branch under Article II, Section 2, of the U.S. Constitution.
[The President] shall have Power, by and with the Advice and Consent of the Senate, to make Treaties, provided two thirds of the Senators present concur.
Compare to Article I, Section 7, which gives the House of Representatives the lead role in domestic revenue matters.
“All Bills for raising Revenue shall originate in the House of Representatives.”
Step 1, continued
Congressional restraint on Executive power to make treaties is exercised by the Senate, traditionally through its Foreign Relations Committee.Most treaties are negotiated on behalf of the United States by the State Department.Tax Treaties are an exception: they are negotiated primarily by the Treasury Department.
However, the State Department is traditionally consulted before a treaty is signed.
Step 2. Initiate Negotiations.Various sectors of the Treasury Department are involved in negotiating treaties.
Primary responsibility is assigned to the Office of International Tax Counsel, a division of the Office of Tax Policy.Staff assistance is traditionally provided by the Internal Revenue Service.
The decision about what treaties to initiate or update is not made public.
Presumably, there is some form of unstated standard, whether written or unwritten, because U.S. treaty policy has been consistent over several decades.
Step 2, continued
In connection with new treaties with Japan and Sri Lanka, former ITC Barbara Angus hinted at some of this policy:
“In establishing our negotiating priorities, our primary objective is the conclusion of tax treaties or protocols that will provide the greatest economic benefit to the United States and to U.S. taxpayers.”To that end, “We communicate regularly with the U.S. business community, seeking input regarding the areas in which treaty network expansion and improvement efforts should be focused.”[Testimony of Barbara M. Angus, International Tax Counsel, United States Department of the Treasury before the Senate Committee on Foreign Relations on Pending Income Tax Agreements, FEBRUARY 25, 2004]
3. Negotiate.
The ITC negotiates the treaty with his or her foreign counterpartThis is done in secret, in the sense that there are no public meetings.
4. Initial.
• International Tax Counsel initials the treaty to sign off on the negotiations and move the treaty into ratification phase.
5. Submit to President.
International Tax Counsel presents the initialed treaty to the President or his delegate for signature.The Dept of State and Treasury prepare a report to the President recommending he transmit the treaty to Senate for advice abdconsent to ratification
President
Treasury Depttax treaties
State DeptState Deptmost treaties
Assistant Sec’y., Tax Policy
Office of International Tax Counsel
Senate Foreign Senate Foreign Relations Relations CommitteeCommittee
Senate Finance Senate Finance CommitteeCommittee
House Ways & House Ways & Means CommitteeMeans Committee
traditionally consults
with
negotiates with foreign countriesinitials the treatypresents to President or his delegate for signature
Congress
Summary: Delegation of Treaty Negotiation ResponsibilitiesSummary: Delegation of Treaty Negotiation Responsibilities
6. Sign.
If the President approves of the treaty, he signs it.
7. Transmit to Senate.
After it is signed by the President, the treaty is forwarded together with the Report to Senate under a letter of transmittal.Senate formally lifts the injunction of secrecy, and the signed treaty become public information.
While the Senate Finance Committee has jurisdiction over tax legislation, jurisdiction over tax treaties lies with the Senate Foreign RelationsCommitteeAfter receiving the signed treaty and the President’s transmittal letter, the Senate Foreign Relations Committee schedules public hearings
A representative of Treasury testifies at the hearing in support of ratificationTreasury also generally presents a Technical Explanation of the treaty
8. Transmit to Senate Foreign Relations Committee.
9. Obtain Advice and Consent from Senate.
“Advice” is not defined, and has been construed to mean that Senate can consent to a treaty with “reservations” with respect to particular provisionsProvisions subject to reservation are not enforceableFor example, some treaties (e.g. Pakistan) contains a reservation on tax sparing.The Senate must consent to the treaty by a 2/3 vote.
10. Transmit to the President.
11. Prepare and Sign Instruments of Ratification
12. Exchange Instruments of Ratification.
Summary: 12 Steps to a Tax Treaty1. Obtain Authority.2. Initiate Negotiations.3. Negotiate4. Initial5. Submit to the President6. Sign7. Transmit to Senate8. Transmit to Senate Foreign Relations Committee9. Obtain Advice and Consent from Senate10. Transmit to the President11. Prepare and Sign Instruments of Ratification12. Exchange Instruments of Ratification
That’s a long and complicated processaverage 5 years to completeoften requires protocols simultaneous with entry into force of main agreement, because laws have changed in the interim
So, with which countries has the U.S. completed this process?
1935: First Tax Treaty Concluded
France
Pre-WW II: Addition of Canada (1937) and Sweden (1939)
Canada
Sweden
France
1946 to 1951: After the War, Northern Europe and New Zealand, including Cook Islands
Canada
Sweden
France
Norway
Switzerland
Denmark
NetherlandsBelgium
New Zealand
Cook Islands(NZ ext.)
U.K.Ireland
1952 to 1957: Random Patterns?
Canada
Sweden
France
Norway
Switzerland
Denmark
NetherlandsBelgium
U.K.
Japan
Greece
Germany Finland
AustraliaSouth Africa
Aruba(NE ext.)
Netherlands Antilles(NE ext.)
Italy
Honduras Pakistan
Austria
New Zealand
Cook Islands(NZ ext.)
Ireland
1958-1959: Afro-Caribbean Extensions
MontserratDominicaSt. LuciaBarbadosSt. Vincent & the GrenadinesGrenadaTrinidad & Tobago
Canada
Sweden
France
Norway
Switzerland
Denmark
NetherlandsBelgium
U.K.
Japan
Greece
Germany Finland
AustraliaSouth Africa
Aruba(NE ext.)
Netherlands Antilles(NE ext.)
Italy
Honduras Pakistan
Austria
Sierra Leone(UK ext.)
Seychelles(UK ext.)
Falkland Islands
Cayman IslandsJamaica Anguilla
St. Kitts & Nevis Antigua & Barbuda
BVI
Zimbabwe(UK ext.)
Malawi (UK ext.)
Zambia(UK ext.)
Nigeria(UK ext.)
GambiaYemen(UK ext)
Belize(UK ext.)
Congo(Belg ext.)
RwandaBurundi
Cyprus (UK ext)
(Belg ext.)
All by UK ext.:
Ireland
New Zealand
Cook Islands(NZ ext.)
1960 to 1974: 14 Quiet Years:Only Luxembourg is added in 1964…
Malawi (UK ext.)
MontserratDominicaSt. LuciaBarbadosSt. Vincent & the GrenadinesGrenadaTrinidad & Tobago
Canada
Sweden
France
Norway
Switzerland
Denmark
NetherlandsBelgium
U.K.
Japan
Greece
Germany Finland
AustraliaSouth Africa
Aruba(NE ext.)
Netherlands Antilles(NE ext.)
Italy
Honduras Pakistan
Austria
Sierra Leone(UK ext.)
Seychelles(UK ext.)
Falkland Islands
Cayman IslandsJamaica Anguilla
St. Kitts & Nevis Antigua & Barbuda
BVI
Zimbabwe(UK ext.)
Zambia(UK ext.)
Nigeria(UK ext.)
GambiaYemen(UK ext)
Belize(UK ext.)
Congo(Belg ext.)
Cyprus (UK ext)All by UK ext.:
RwandaBurundi (Belg ext.)
Luxembourg
Ireland
New Zealand
Cook Islands(NZ ext.)
…but terminations begin in 1966.
Malawi (UK ext.)
MontserratDominicaSt. LuciaBarbadosSt. Vincent & the GrenadinesGrenadaTrinidad & Tobago
Canada
Sweden
France
Norway
Switzerland
Denmark
NetherlandsBelgium
U.K.
Japan
Greece
Germany Finland
AustraliaSouth Africa
Aruba(NE ext.)
Netherlands Antilles(NE ext.)
Italy
Pakistan
Austria
Sierra Leone(UK ext.)
Seychelles(UK ext.)
Falkland Islands
Jamaica Anguilla St. Kitts & Nevis Antigua & Barbuda
BVI
Zambia(UK ext.)
Nigeria(UK ext.)
GambiaYemen(UK ext)
Belize(UK ext.)
Congo(Belg ext.)
All by UK ext.:
RwandaBurundi (Belg ext.)
Luxembourg
Honduras terminates in 1966.
Termination of UK extensions to Cyprus (1968),Cayman Islands (1969), and Zimbabwe (1974).
Ireland
New Zealand
Cook Islands(NZ ext.)
X
X
X
X
1976: Five Additions
Malawi (UK ext.)
MontserratDominicaSt. LuciaBarbadosSt. Vincent & the GrenadinesGrenadaTrinidad & Tobago (new treaty)
Canada
Sweden
France
Norway
Switzerland
Denmark
NetherlandsBelgium
U.K.
Japan
Greece
Germany Finland
AustraliaSouth Africa
Aruba(NE ext.)
Netherlands Antilles(NE ext.)
Italy
Pakistan
Austria
Sierra Leone(UK ext.)
Seychelles(UK ext.)
Falkland Islands
Jamaica Anguilla St. Kitts & Nevis Antigua & Barbuda
BVI
Zambia(UK ext.)
Nigeria(UK ext.)
GambiaYemen(UK ext)
Belize(UK ext.)
Congo(Belg ext.)
All by UK ext.:
RwandaBurundi (Belg ext.)
Luxembourg
Iceland
Poland U.S.S.R.Romania
New Zealand
Cook Islands(NZ ext.)
Ireland
1979: Hungary and Korea added; Nigeria terminates.
Malawi (UK ext.)
MontserratDominicaSt. LuciaBarbadosSt. Vincent & the GrenadinesGrenadaTrinidad & Tobago
Canada
Sweden
France
Norway
Switzerland
Denmark
NetherlandsBelgium
U.K.
Japan
Greece
Germany Finland
AustraliaSouth Africa
Aruba(NE ext.)
Netherlands Antilles(NE ext.)
Italy
Pakistan
Austria
Sierra Leone(UK ext.)
Seychelles(UK ext.)
Falkland Islands
Jamaica Anguilla St. Kitts & Nevis Antigua & Barbuda
BVI
Zambia(UK ext.)
GambiaYemen(UK ext)
Belize(UK ext.)
Congo(Belg ext.)
All by UK ext.:
RwandaBurundi (Belg ext.)
Luxembourg
Iceland
Poland U.S.S.R.Romania
Hungary
Korea
Nigeria terminates UK extension (1979)
Ireland
New Zealand
Cook Islands(NZ ext.)
X
Four Additions from 1981-1982
Malawi (UK ext.)
MontserratDominicaSt. LuciaBarbadosSt. Vincent & the GrenadinesGrenadaTrinidad & Tobago
Canada
Sweden
France
Norway
Switzerland
Denmark
NetherlandsBelgium
U.K.
Japan
Greece
Germany Finland
AustraliaSouth Africa
Aruba(NE ext.)
Netherlands Antilles(NE ext.)
Italy
Pakistan
Austria
Sierra Leone(UK ext.)
Seychelles(UK ext.)
Falkland Islands
Jamaica(new treaty) Anguilla
St. Kitts & Nevis Antigua & Barbuda
BVI
Zambia(UK ext.)
GambiaYemen(UK ext)
Belize(UK ext.)
Congo(Belg ext.)
All by UK ext.:
RwandaBurundi (Belg ext.)
Luxembourg
Iceland
Poland U.S.S.R.Romania
Hungary
Korea
Morocco
Egypt
Malta
Philippines
New Zealand
Cook Islands(NZ ext.)
Ireland
Trinidad & Tobago
Canada
Sweden
France
Norway
Switzerland
Denmark
NetherlandsBelgium
U.K.
Japan
Greece
Germany Finland
AustraliaSouth Africa
Aruba(NE ext.)
Netherlands Antilles(NE ext.)
Italy
Pakistan
Austria
Jamaica
Luxembourg
Iceland
Poland U.S.S.R.Romania
Hungary
Korea
Morocco
Egypt
Malta
Philippines
Ireland
New Zealand
1984: Termination of Extensions
(2) Termination of Belgium extensions to Burundi, Congo, and Rwanda.
(3) Termination of New Zealand extension to Cook Islands.
X
XXXX
X
X
XXXXXX
XXX XX
XX X
X
(1) Termination of UK extensionsto Anguilla,
Antigua & Barbuda, Barbados, Belize, British Virgin Islands, Dominica, Falkland Islands, Gambia, Grenada, Malawi, Montserrat, Seychelles, Sierra Leone, St. Kitts & Nevis, St. Lucia, St. Vincent & the Grenadines, Yemen, and Zambia; also to Trinidad & Tobago and Jamaica (but they had independent treaties as of 1970 and 1981, respectively).
1986: Barbados, China, Cyprus
Ireland
Trinidad & Tobago
Canada
Sweden
France
Norway
Switzerland
Denmark
NetherlandsBelgium
U.K.
Japan
Greece
Germany Finland
Australia
Aruba(NE ext.)
Netherlands Antilles(NE ext.)
Italy
Pakistan
Austria
Jamaica
Luxembourg
Iceland
Poland U.S.S.R.Romania
Hungary
Korea
Morocco
Egypt
Malta
Philippines
China
Cyprus
Barbados
New Zealand
1987: Termination of South Africa
Ireland
Trinidad & Tobago
Canada
Sweden
France
Norway
Switzerland
Denmark
NetherlandsBelgium
U.K.
Japan
Greece
Germany Finland
Australia
[Aruba(NE ext.)]
[Netherlands Antilles(NE ext.)]
Italy
Pakistan
Austria
Jamaica
Luxembourg
Iceland
Poland U.S.S.R.Romania
Hungary
Korea
Morocco
Egypt
Malta
Philippines
China
Cyprus
Barbados
New Zealand
X
1988: Termination of Netherlands extensions, except as to Art. VIII (interest).
Ireland
Trinidad & Tobago
Canada
Sweden
France
Norway
Switzerland
Denmark
NetherlandsBelgium
U.K.
Japan
Greece
Germany Finland
Australia
[Aruba(NE ext.)]
[Netherlands Antilles(NE ext.)]
Italy
Pakistan
Austria
Jamaica
Luxembourg
Iceland
Poland U.S.S.R.Romania
Hungary
Korea
Morocco
Egypt
Malta
Philippines
China
Cyprus
Barbados
New Zealand
1990: Four additions
Trinidad & Tobago
Canada
Sweden
France
Norway
Switzerland
Denmark
NetherlandsBelgium
U.K.
Japan
Greece
Germany Finland
Australia
[Aruba(NE ext.)]
[Netherlands Antilles(NE ext.)]
Italy
Pakistan
Austria
Jamaica
Luxembourg
Iceland
Poland U.S.S.R.Romania
Hungary
Korea
Morocco
Egypt
Malta
Philippines
China
Cyprus
Barbados
Spain
India
Tunisia
Indonesia
Ireland
New Zealand
1993 to 1995: Six additions, final termination of Netherlands extensions
Ireland
Trinidad & Tobago
Canada
Sweden
France
Norway
Switzerland
Denmark
NetherlandsBelgium
U.K.
Japan
Greece
Germany Finland
Australia
Italy
Pakistan
Austria
Jamaica
Luxembourg
Iceland
PolandRomania
Hungary
Korea
Morocco
Egypt
Malta
Philippines
China
Cyprus
Barbados
Spain
India
Tunisia
Indonesia
Portugal
Mexico
Final termination of Netherlands extensionsto Aruba and the Netherlands Antilles.
CzechRepublic
SlovakRepublic
Israel
New Zealand
XX
ArmeniaAzerbaijanBelarusEstoniaGeorgiaKazakhstanLatviaLithuaniaMoldovaRussiaTajikstanTurkmenistanUkraineUzbekistan
1997: Four additions, termination of Malta
Trinidad & Tobago
Canada
Sweden
France
Norway
Switzerland
Denmark
NetherlandsBelgium
U.K.
Japan
Greece
Germany Finland
Australia
Italy
Pakistan
Austria
Jamaica
Luxembourg
Iceland
PolandRomania
Hungary
Korea
Morocco
Egypt
Philippines
China
Cyprus
Barbados
Spain
India
Tunisia
Indonesia
Portugal
Mexico
CzechRepublic
SlovakRepublic
Israel
South Africa
ThailandTurkey
New Zealand
Ireland
X
ArmeniaAzerbaijanBelarusEstoniaGeorgiaKazakhstanLatviaLithuaniaMoldovaRussiaTajikstanTurkmenistanUkraineUzbekistan
1999 to 2001: Six Additions
Trinidad & Tobago
Canada
Sweden
France
Norway
Switzerland
Denmark
NetherlandsBelgium
U.K.
Japan
Greece
Germany Finland
Australia
Italy
Pakistan
Austria
Jamaica
Luxembourg
Iceland
PolandRomania
Hungary
Korea
Morocco
Egypt
Philippines
China
Cyprus
Barbados
Spain
India
Tunisia
Indonesia
Portugal
Mexico
CzechRepublic
SlovakRepublic
Israel
South Africa
ThailandTurkey
Slovenia
Venezuela
New Zealand
Ireland
ArmeniaAzerbaijanBelarusEstoniaGeorgiaKazakhstanLatviaLithuaniaMoldovaRussiaTajikstanTurkmenistanUkraineUzbekistan
2004: Sri Lanka
Trinidad & Tobago
Canada
Sweden
France
Norway
Switzerland
Denmark
NetherlandsBelgium
U.K.
Japan
Greece
Germany Finland
Australia
Italy
Pakistan
Austria
Jamaica
Luxembourg
Iceland
PolandRomania
Hungary
Korea
Morocco
Egypt
Philippines
China
Cyprus
Barbados
Spain
India
Tunisia
Indonesia
Portugal
Mexico
CzechRepublic
SlovakRepublic
Israel
South Africa
ThailandTurkey
Slovenia
Venezuela
Sri Lanka
Ireland
New Zealand
ArmeniaAzerbaijanBelarusEstoniaGeorgiaKazakhstanLatviaLithuaniaMoldovaRussiaTajikstanTurkmenistanUkraineUzbekistan
2005: Bangladesh
Trinidad & Tobago
Canada
Sweden
France
Norway
Switzerland
Denmark
NetherlandsBelgium
U.K.
Japan
Greece
Germany Finland
Australia
Italy
Pakistan
Austria
Jamaica
Luxembourg
Iceland
PolandRomania
Hungary
Korea
Morocco
Egypt
Philippines
China
Cyprus
Barbados
Spain
India
Tunisia
Indonesia
Portugal
Mexico
CzechRepublic
SlovakRepublic
Israel
South Africa
ThailandTurkey
Slovenia
Venezuela
Sri Lanka
Ireland
New Zealand
ArmeniaAzerbaijanBelarusEstoniaGeorgiaKazakhstanLatviaLithuaniaMoldovaRussiaTajikstanTurkmenistanUkraineUzbekistan
Bangladesh
2007 and on: What are our Priorities?
Trinidad & Tobago
Canada
Sweden
France
Norway
Switzerland
Denmark
NetherlandsBelgium
U.K.
Japan
Greece
Germany Finland
Australia
Italy
Pakistan
Austria
Jamaica
Luxembourg
Iceland
PolandRomania
Hungary
Korea
Morocco
Egypt
Philippines
China
Cyprus
Barbados
Spain
India
Tunisia
Indonesia
Portugal
Mexico
CzechRepublic
SlovakRepublic
Israel
South Africa
ThailandTurkey
Slovenia
Venezuela
Sri Lanka
Ireland
New Zealand
ArmeniaAzerbaijanBelarusEstoniaGeorgiaKazakhstanLatviaLithuaniaMoldovaRussiaTajikstanTurkmenistanUkraineUzbekistan
Bangladesh
Middle East?Malaysia?
Botswana?
Brazil?
Argentina?
Libya?
Chile?