ARTICLE 7
U.S. Income Tax Treaty — Italy Technical Explanation - 1984 · 2026-10-03 edition · updated 2026-10-04 · United States
Paragraph 1 of Article 7 of the Protocol is intended to deal with changes in law of either of the Contracting States that have the effect of changing the application of the Convention in a significant manner or that alter the relationship between the Contracting States. Paragraph 1 provides, first, that, in response to a change in the law of either State, the appropriate authority of either State may request consultations with its counterpart in the other State to determine whether a change in the Convention is appropriate. The "appropriate authorities" may be the Contracting States themselves, communicating through diplomatic channels, or they may be the competent authorities under the Convention, communicating directly. The request for consultations may come either from the authority of the Contracting State making the change in law, or it may come from the authority of the other State. If the authorities determine, on the basis of the consultations, that a change in domestic legislation has significantly altered the balance of benefits provided by the Convention, they will consult with a view to amending the Convention to restore an appropriate balance. Any such amendment would, of course, require a protocol or new treaty which, in the case of the United States, would be subject to Senate advice and consent to ratification.
Paragraph 2 of Article 7 of the Protocol, which relates to consultations between the competent authorities within three years of entry into force of the Convention, is discussed above in connection with Article 25 (Mutual Agreement Procedure) of the Convention.
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