    [Senate Treaty Document 112-8]
    [From the U.S. Government Publishing Office]

    112th Congress
    2d Session                      SENATE                     Treaty Doc.
    112-8
    _______________________________________________________________________

                           TAX CONVENTION WITH CHILE

                                   __________

                                    MESSAGE

                                      from

                         THE PRESIDENT OF THE UNITED STATES

                                  transmitting

     THE CONVENTION BETWEEN THE GOVERNMENT OF THE UNITED STATES OF AMERICA
    AND THE GOVERNMENT OF THE REPUBLIC OF CHILE FOR THE AVOIDANCE OF DOUBLE
    TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON
     INCOME AND CAPITAL, SIGNED IN WASHINGTON ON FEBRUARY 4, 2010, WITH A
       PROTOCOL SIGNED THE SAME DAY, AS CORRECTED BY EXCHANGES OF NOTES
    EFFECTED FEBRUARY 25, 2011, AND FEBRUARY 10 AND 21, 2012, AND A RELATED
    AGREEMENT EFFECTED BY EXCHANGE OF NOTES (THE ``RELATED AGREEMENT'') ON
                                FEBRUARY 4, 2010

     May 17, 2012.--Treaty was read the first time, and together with the
    accompanying papers, referred to the Committee on Foreign Relations and
                ordered to be printed for the use of the Senate
                             LETTER OF TRANSMITTAL

                                  ----------

                                         The White House, May 17, 2012.
    To the Senate of the United States:
        I transmit herewith, for the advice and consent of the
    Senate to their ratification, the Convention between the
    Government of the United States of America and the Government
    of the Republic of Chile for the Avoidance of Double Taxation
    and the Prevention of Fiscal Evasion with Respect to Taxes on
    Income and Capital, signed in Washington on February 4, 2010,
    with a Protocol signed the same day, as corrected by exchanges
    of notes effected February 25, 2011, and February 10 and 21,
    2012, and a related agreement effected by exchange of notes
    (the ``related Agreement'') on February 4, 2010. I also
    transmit for the information of the Senate the report of the
    Department of State, which includes an Overview of the proposed
    Convention, the Protocol, and related Agreement.
        The proposed Convention, Protocol, and related Agreement
    (together ``proposed Treaty'') would be the first bilateral
    income tax treaty between the United States and Chile. The
    proposed Treaty contains comprehensive provisions designed to
    address ``treaty shopping,'' which is the inappropriate use of
    a tax treaty by residents of a third country, and provides for
    a robust exchange of information between the tax authorities in
    the two countries to facilitate the administration of each
    country's tax laws.
        I recommend that the Senate give early and favorable
    consideration to the proposed Treaty and give its advice and
    consent to the ratification thereof.

                                                          Barack Obama.
                              LETTER OF SUBMITTAL

                                  ----------

                                           Department of State,
                                            Washington, March 22, 2012.
    The President,
    The White House.
        The President: I have the honor to submit to you, with a
    view to their transmission to the Senate for advice and consent
    to ratification, the Convention between the Government of the
    United States of America and the Government of the Republic of
    Chile for the Avoidance of Double Taxation and the Prevention
    of Fiscal Evasion with Respect to Taxes on Income and Capital,
    signed at Washington February 4, 2010, together with a Protocol
    to the Convention signed the same day, as corrected by
    exchanges of notes effected February 25, 2011, and February 10
    and 21, 2012, and a related agreement effected by exchange of
    notes on February 4, 2010 (``related Agreement'').
        The proposed Convention, its Protocol, and the related
    Agreement (together ``proposed Treaty'') would be the first
    bilateral income tax treaty between the United States and
    Chile. The proposed Treaty contains comprehensive provisions
    designed to address ``treaty shopping,'' which is the
    inappropriate use of a tax treaty by residents of a third
    country. The proposed Treaty also provides for robust exchange
    of information between tax authorities in the two countries to
    facilitate the administration of each country's tax laws. The
    proposed Treaty generally follows the current U.S. Model Income
    Tax Convention and the current Organization for Economic
    Cooperation and Development standards for exchange of
    information for tax purposes. An overview of key provisions of
    the proposed Treaty is enclosed with this report.
        The proposed Convention is self-executing. I recommend that
    the proposed Treaty be transmitted to the Senate for its advice
    and consent to ratification. The Department of the Treasury and
    the Department of State cooperated in the negotiation of the
    proposed Treaty, and the Department of the Treasury joins the
    Department of State in recommending that the proposed Treaty be
    transmitted to the Senate as soon as possible for its advice
    and consent to ratification.
                Respectfully submitted,
                                                Hillary Rodham Clinton.
        Enclosures: As stated.