[Congressional Record (Bound Edition), Volume 150 (2004), Part 13]
[Senate]
[Pages 18130-18131]
[From the U.S. Government Publishing Office, www.gpo.gov]




REMOVAL OF INJUNCTION OF SECRECY--2ND PROTOCOL AMENDING TAX CONVENTION 
                   WITH BARBADOS (TREATY DOC. 108-26)

  Mr. McCONNELL. Mr. President, as in executive session, I ask 
unanimous consent that the injunction of secrecy be removed from the 
following treaty transmitted to the Senate on September 13, 2004 by the 
President of the United States: 2nd protocol amending tax convention 
with Barbados (Treaty Doc. 108-26).
  I further ask unanimous consent that the treaty be considered as 
having been read the first time, that it be referred, with accompanying 
papers, to the Committee on Foreign Relations and ordered to be 
printed, and that the President's message be printed in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The message of the President is as follows:
To the Senate of the United States:
  With a view to receiving the advice and consent of the Senate to 
ratification, I transmit the Second Protocol

[[Page 18131]]

Amending the Convention Between the United States of America and 
Barbados for the Avoidance of Double Taxation and the Prevention of 
Fiscal Evasion with Respect to Taxes on Income Signed on December 31, 
1984, signed at Washington on July 14, 2004. Also enclosed for the 
Senate's information is an exchange of notes with attached 
Understandings, which provide clarification with respect to the 
application of the Convention, as amended, in specified cases. Also 
transmitted for information of the Senate is the report of the 
Department of State with respect to the Protocol.
  The Protocol updates the existing Convention to bring it into close 
conformity with current U.S. tax treaty policy and to ensure that the 
Convention cannot be used inappropriately to secure tax reductions in 
circumstances where there is no risk of double taxation. The Protocol 
would modernize the Convention's anti-treaty-shopping provision. The 
Protocol also updates the Convention to take account of a 1996 change 
in the Internal Revenue Code relating to the tax treatment of certain 
former long-term residents of the United States. The exchange of notes 
with attached Understandings provides guidance to taxpayers and each 
government regarding the intended interpretation of certain provisions 
of the Convention, as amended.
  I recommend that the Senate give early and favorable consideration to 
this Protocol and give its advice and consent to ratification.
                                                      George W. Bush.  
The White House, September 13, 2004.

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