Article 26. EXCHANGE OF INFORM.A TION

Paragraph (1) provides for a system of administrative cooperation between the competent authorities of the two Contracting States by requir• ing an exchange of information necessary for the carrying out of the Convention and of the domestic laws of the Contracting States concerning taxes covered by the Convention insofar as the taxation thereunder is in accordance with the Convention. The competent authorities may exchange information in connection with tax compliance generally, not merely

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il egal acts or crimes. Information need be exchanged, however, only if it is of a class that can be obtained .under the laws and administrative practices of each Contracting State with respect to its own taxes.

Paragraph (2) provides that information exchanged must be treated as secret. However, such information may be disclosed to any persons or authorities concerned with or made part of the public record with respect to the assessment, collection, or enforcement of, or litigation with respect to, the taxes which are the subject of the Convention. Thus, disclosure is not prohibited as a part of a public proceeding before a court or an administrative body.

Paragraph (3) provides that no information,nay be exchanged which would be contrary to public policy.

Paragraph (4) provides that if information is requested by a Contract­ ing State in accordance with Article 26, the other Contracting State will obtain the information to which the request relates from or with respect to its residents or with respect to its residents or corporations in the same manner and to the same extent as if the tax of the requesting State were the tax of the other State and were being imposed by the other State.

A Contracting State may obtain information from or with respect to its residents or corporations in accordance with paragraph (4) for the sole purpose of assisting the other Contracting State in the determination of the taxes of that other State, Thus, a: Contracting State may use the mechanisms provided by its. internal law to obtain information for the

other Contracting State even if it has no internal tax interest in obtaining that information; its only interest being the request made under paragraph (4}.

Paragraph (5) provides that depositions of witnesses and copies of unedited original documents (including books, papers, statements, records, accounts, or writings) may be provided by the competent authority of a

Contracting State if specifically requested by the competent authority of the other Contracting State to the extent such depositions and documents can be obtained under the laws and administrative practices of e_ach Con­ tracting State with respect to its own taxes,

Paragraph (6) provides that the exchange of information may be on either a routine basis or on request with reference to particular cases, and that the competent authorities may agree on the list of information to be furnished on a routine basis,