[Congressional Record Volume 141, Number 135 (Friday, August 11, 1995)]
[Senate]
[Pages S12522-S12523]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


        REVISED PROTOCOL AMENDING THE TAX CONVENTION WITH CANADA

  Mr. DOLE. Mr. President, I ask unanimous consent that the Senate 
proceed to executive session to consider Executive Calendar Nos. 4 
through 10.
  I further ask unanimous consent that the treaties be considered as 
having passed through their various parliamentary stages up to and 
including the presentation of the resolutions of ratification; that all 
committee provisos, reservations, understandings, et cetera, be 
considered agreed to. 

[[Page S 12523]]

  The PRESIDING OFFICER. Without objection, it is so ordered.
  The clerk will state the resolutions of ratification.
  The legislative clerk read as follows:
                   Income Tax Convention with Sweden

       Resolved, (two-thirds of the Senators present concurring 
     therein), That the Senate advise and consent to the 
     ratification of the Convention between the Government of the 
     United States of America and the Government of Sweden for the 
     Avoidance of Double Taxation and the Prevention of Fiscal 
     Evasion with Respect to Taxes on Income, signed at Stockholm 
     on September 1, 1994, together with a related exchange of 
     notes (Treaty Doc. 103-29).


                   income tax convention with ukraine

  exchange of notes dated at washington, dc, may 26 and june 6, 1995 
    relating to the income tax convention and protocol with ukraine

       Resolved, (two-thirds of the Senators present concurring 
     therein), That the Senate advise and consent to the 
     ratification of the Convention between the Government of the 
     United States of America and the Government of Ukraine for 
     the Avoidance of Double Taxation and the Prevention of Fiscal 
     Evasion with Respect to Taxes on Income and Capital, Together 
     With a Related Protocol, signed at Washington on March 4, 
     1994 (Treaty Doc. 104-11).
  additional protocol modifying the income tax convention with mexico

       Resolved, (two-thirds of the Senators present concurring 
     therein), That the Senate advise and consent to the 
     ratification of the Additional Protocol that Modifies the 
     Convention between the Government of the United States of 
     America and the Government of the United Mexican States for 
     the Avoidance of Double Taxation and the Prevention of Fiscal 
     Evasion with Respect to Taxes on Income signed at Washington 
     on September 18, 1992. The Additional Protocol was signed at 
     Mexico City on September 8, 1994 (Treaty Doc. 103-31).


             income tax convention with the french republic

       Resolved (two-thirds of the Senators present concurring 
     therein), That the Senate advise and consent to the 
     ratification of the Convention between the Government of the 
     United States of America and the Government of the French 
     Republic for the Avoidance of Double Taxation and the 
     Prevention of Fiscal Evasion with Respect to Taxes on Income 
     and Capital, signed at Paris on August 31, 1994, together 
     with two related exchanges of notes (Treaty Doc. 103-32). The 
     Senate's advise and consent is subject to the following 
     declaration, which shall not be included in the instrument of 
     ratification to be signed by the President:
       That it is the Sense of the Senate that the tax relief 
     available under paragraph 5(b) of Article 30 of the proposed 
     Convention, which exempts certain interest payments to French 
     subsidiaries from United States tax to the extent that United 
     States tax is imposed on such payments under subpart F of 
     Part III of subchapter N of chapter 1 of subtitle A of the 
     Internal Revenue Code (``subpart F''), should be 
     automatically available to any French subsidiary that is a 
     controlled foreign corporation under Section 957 of the 
     Internal Revenue Code to the extent that such payments are 
     taxed under subpart F. The Treasury Department and the 
     Internal Revenue Service shall negotiate with their Dutch 
     counterparts an application of Paragraph 8 of the Article 12 
     of the U.S.-Netherlands Tax Treaty consistent with the French 
     Treaty as described above and grant a long-term exemption 
     from United States tax for interest paid to Dutch 
     subsidiaries to the extent such interest is taxed under 
     subpart F.
            income tax convention and protocol with portugal

       Resolved, (two-thirds of the Senators present concurring 
     therein), That the Senate advise and consent to the 
     ratification of the Convention between the Government of the 
     United States of America and the Portuguese Republic for the 
     Avoidance of Double Taxation and the Prevention of Fiscal 
     Evasion with Respect to Taxes on Income, together with a 
     related Protocol, signed at Washington on September 6, 1994 
     (Treaty Doc. 103-34). The Senate's advice and consent is 
     subject to the following two understandings, both of which 
     shall be included in the instrument of ratification to be 
     signed by the President and the following two declarations, 
     neither of which shall be included in the instrument of 
     ratification to be signed by the President:
       (a) Understanding: That if the Portuguese Republic changes 
     its internal policy with respect to government ownership of 
     commercial banks in a manner that has the effect of exempting 
     from U.S. tax the U.S.-source interest paid to Portuguese 
     commercial banks under paragraph 3(b) of Article 11, the 
     Government of Portugal shall so notify the Government of the 
     United States and the two Governments shall enter into 
     consultations with a view to restoring the balance of 
     benefits under the proposed Convention;
       (b) Understanding: That the second sentence of paragraph 2 
     of article 2 of the proposed Convention shall be understood 
     to include the specific agreement that the Portuguese 
     Republic regularly shall inform the Government of the United 
     States of America as to the progress of all negotiations with 
     and actions taken by the European Union or any representative 
     organization thereof, which may affect the application of 
     paragraph 3(b) of article 10 of the proposed Convention;
       (c) Declaration: That the United States Department of the 
     Treasury shall inform the Senate Committee on Foreign 
     Relations as to the progress of all negotiations with and 
     actions taken by the European Union or any representative 
     organization thereof, which may affect the application of 
     paragraph 3(b) of article 10 of the proposed Convention; and
       (d) Declaration: That it is the Sense of the Senate that 
     (1) the effect of the Portuguese Substitute Gift and 
     Inheritance Tax is to provide for nonreciprocal rates of tax 
     between the two parties; (2) such nonreciprocal treatment is 
     a significant concession by the United States that should not 
     be viewed as a precedent for future U.S. tax treaties, and, 
     could in fact be a barrier to Senate advice and consent to 
     ratification of future treaties; (3) the Portuguese 
     Government should take appropriate steps to insure that 
     interest and dividend income beneficially owned by residents 
     of the United States is not subject to higher effective rates 
     of taxation by Portugal than the corresponding effective 
     rates of taxation imposed by the United States on such income 
     beneficially owned by residents of Portugal; and (4) the 
     United States should communicate this Sense of the Senate to 
     the Portuguese Republic.


        revised protocol amending the tax convention with canada

       Resolved, (two-thirds of the Senators present concurring 
     therein), That the Senate advise and consent to the 
     ratification of a Revised Protocol Amending the Convention 
     between the United States and Canada with Respect to Taxes on 
     Income and on Capital signed at Washington on September 26, 
     1980, as Amended by the Protocols signed on June 14, 1983 and 
     March 28, 1984. The Revised Protocol was signed at Washington 
     on March 17, 1995 (Treaty Doc. 104-4). The Senate's advice 
     and consent is subject to the following declaration, which 
     shall not be included in the instrument of ratification to be 
     signed by the President:
       That the United States Department of the Treasury shall 
     inform the Senate Committee on Foreign Relations as to the 
     progress of all negotiations with and actions taken by Canada 
     that may affect the application of paragraph 3(d) of article 
     XII of the Convention, as amended by article 7 of the 
     proposed Protocol.
  Mr. DOLE. Mr. President, I ask unanimous consent that any statements 
be inserted in the Congressional Record as if read; that the Senate 
take one vote on the resolutions of ratification to be considered as 
separate votes; further, that when the resolutions of ratification are 
voted upon, the motions to reconsider be laid upon the table; that the 
President be notified of the Senate's action, and that following 
disposition of the treaties, the Senate return to legislative session.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. DOLE. Mr. President, I ask for consideration of the resolutions 
before the Senate by a division vote.
  The PRESIDING OFFICER. A division vote is requested.
  Senators in favor of the resolutions of ratification please stand and 
be counted. [After a pause.] All those opposed please stand and be 
counted.
  On a division, two-thirds of the Senators present and voting having 
voted in the affirmative, the resolutions of ratification are agreed 
to.

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