ARTICLE 26

Exchange of Information

This article provides for a system of administrative cooperation between the competent authorities of the two States and specifies conditions under which information may be exchanged to facilitate the administration of the Convention and to prevent fraud and the avoidance of taxes to which the Convention relates. Pursuant to paragraph (3) of Article 1, this article applies to all national taxes of the two States.

Information exchanged is treated as secret and may not be disclosed to any persons other than those (including a court or administrative body) concerned with the assessment, collection, enforcement, or prosecution of taxes subject to the Convention. This does not prohibit disclosure in the course of a court proceeding. In no case does this article impose an obligation on either State to disclose trade secrets or similar information or to carry out administrative measures or supply particulars where such action would be at variance with the laws or administrative practice of that State, or contrary to public policy. In general, the standard for the exchange of information is the standard used by the States in the enforcement of their own laws by administrative and judicial authorities.

In addition, the new Convention specifically provides (as the 1954 Convention did not)

that the competent authority of each State will advise the competent authority of the other State of any addition to or amendment of tax laws which concern the imposition of taxes which are the subject of the Convention. The competent authorities may also agree on a list of information to be exchanged on a routine basis. It is further provided that the competent authorities will exchange the texts of all published material interpreting the Convention under the laws of the respective States, whether in the form of regulations, rulings, or judicial decisions. The exchange of information may be either on a routine basis or on request with reference to particular cases.