Today, the Senate Foreign Relations Committee heard testimony from the Treasury Department, the Joint Committee on Taxation and private sector witnesses on five tax treaties, including those with Switzerland, Luxembourg, Hungary, Chile and the convention on mutual administrative assistance in tax matters.
Robert Stack, Treasury Deputy Assistant Secretary for International Tax Affairs testified, “The proposed tax treaties before the Committee today are with Chile, Hungary, Luxembourg and Switzerland, in addition to the proposed protocol to the Convention on Mutual Administrative Assistance in Tax Matters (the ‘Multilateral Convention’), and each serves to further the goals of our tax treaty network. The proposed tax treaty with Chile would be the first tax treaty between the United States and Chile, which the U.S. business community has been calling for. The proposed tax treaty with Hungary would replace an existing treaty the revision of which has been a top tax treaty priority for the Treasury Department. It contains a comprehensive ‘limitation on benefits’ article designed to address possible abusive treaty shopping. The proposed protocols with Luxembourg and Switzerland modify existing tax treaty relationships. The proposed protocol to the Multilateral Convention brings the Multilateral Convention, to which the United States is a party, into conformity with the current international standards for exchanges of information between tax authorities to combat tax evasion. We urge the Committee and the Senate to take prompt and favorable action on all of these agreements.”
Testimony can be accessed via: http://www.foreign.senate.gov/hearings/treaties-02-26-2014