[Congressional Record (Bound Edition), Volume 155 (2009), Part 22]
[Senate]
[Pages 29386-29387]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           EXECUTIVE SESSION

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              PROTOCOL AMENDING TAX CONVENTION WITH FRANCE

  Mr. CASEY. Mr. President, I ask unanimous consent that the Senate 
proceed to executive session to consider Executive Calendar No. 1, 
Treaty Document No. 111-4, Protocol Amending Tax Convention with 
France; that the treaty be considered as having advanced through the 
various parliamentary stages, up to and including the presentation of 
the resolution of ratification; that any committee understanding, 
declaration, or condition be agreed to as applicable; that any 
statements be printed in the Record; further, that when the vote on the 
resolution of ratification is taken, the motion to reconsider be 
considered made and laid upon the table, and the President be 
immediately notified of the Senate's action.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. CASEY. Mr. President, I ask for a division vote on the resolution 
of ratification.
  The PRESIDING OFFICER. A division vote has been requested. Senators 
in favor of the resolution of ratification will rise and stand until 
counted. Those opposed will rise and stand until counted.
  On a division, two-thirds of the Senators present and voting having 
voted in the affirmative, the resolution of ratification is agreed to.
  The resolution of ratification agreed to is as follows:

       Resolved, (two-third of the Senators present concurring 
     therein),
       Section 1. Senate Advice and Consent subject to a 
     declaration and a condition.
       The senate advises and consents to the ratification of the 
     Protocol Amending 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, as Amended 
     by the Protocol signed on December 8, 2004, signed on January 
     13, 2009, at Paris, together with a related Memorandum of 
     Understanding, signed January 13, 2009 (the ``Protocol'') 
     (Treaty Doc. 111-4), subject to the declaration of section 2 
     and the condition of section 3.
       Section 2. Declaration.
       The advice and consent of the Senate under section 1 is 
     subject to the following declaration:
       The Protocol is self-executing.
       Section 3. Condition.
       The advice and consent of the Senate under section 1 is 
     subject to the following condition:
       1. Not later than two years from the date on which this 
     Protocol enters into force and prior to the first arbitration 
     conducted pursuant to the binding arbitration mechanism 
     provided for in this Protocol, the Secretary of Treasury 
     shall transmit the text of the rules of procedure applicable 
     to arbitration panels, including conflict of interest rules 
     to be applied to members of the arbitration panel, to the 
     committees on Finance and Foreign Relations of the Senate and 
     the Joint Committee on Taxation.
       2. Sixty days after a determination has been reached by an 
     arbitration panel in the tenth arbitration proceeding 
     conducted pursuant to this Protocol, the 2006 Protocol 
     Amending the Convention between the

[[Page 29387]]

     United States of America and the Federal Republic of Germany 
     for the Avoidance of Double Taxation and the Prevention of 
     Fiscal Evasion with Respect to Taxes on Income and Capital 
     and to Certain Other Taxes (the ``2006 German Protocol'') 
     (Treaty Doc. 109-20), the Convention between the Government 
     of the United States of America and the Government of the 
     Kingdom of Belgium for the Avoidance of Double Taxation and 
     the Prevention of Fiscal Evasion with Respect to Taxes on 
     Income, and accompanying protocol (the ``Belgium 
     Convention'') (Treaty Doc. 110-3), or the Protocol Amending 
     the Convention between the United States of America and 
     Canada with Respect to Taxes on Income and on Capital (the 
     ``2007 Canada Protocol'') (Treaty Doc. 110-15), the Secretary 
     of Treasury shall prepare and submit a detailed report to the 
     Joint Committee on Taxation and the Committee on Finance of 
     the Senate, subject to law relating to taxpayer 
     confidentiality, regarding the operation and application of 
     the arbitration mechanism contained in the aforementioned 
     treaties. The report shall include the following information:
       I. The aggregate number, for each treaty, of cases pending 
     on the respective dates of entry into force of this Protocol, 
     the 2006 German Protocol, the Belgium Convention, and the 
     2007 Canada Protocol, along with the following additional 
     information regarding these cases:
       a. The number of such cases by treaty article(s) at issue;
       b. The number of such cases that have been resolved by the 
     competent authorities through a mutual agreement as of the 
     date of the report; and
       c. The number of such cases for which arbitration 
     proceedings have commenced as of the date of the report.
       II. A list of every case presented to the competent 
     authorities after the entry into force of this Protocol, the 
     2006 German Protocol, the Belgium Convention, and the 2007 
     Canada Protocol, with the following information regarding 
     each case:
       a. The commencement date of the case for purposes of 
     determining when arbitration is available;
       b. Whether the adjustment triggering the case, if any, was 
     made by the United States or the relevant treaty partner;
       c. Which treaty the case relates to;
       d. The treaty article(s) at issue in the case;
       e. The date the case was resolved by the competent 
     authorities through a mutual agreement, if so resolved;
       f. The date on which an arbitration proceeding commenced, 
     if an arbitration proceeding commenced; and
       g. The date on which a determination was reached by the 
     arbitration panel, if a determination was reached, and an 
     indication as to whether the panel found in favor of the 
     United States or the relevant treaty partner.
       III. With respect to each dispute submitted to arbitration 
     and for which a determination was reached by the arbitration 
     panel pursuant to this Protocol, the 2006 German Protocol, 
     the Belgium Convention, and the 2007 Canada Protocol, the 
     following information shall be included:
       a. In the case of a dispute submitted under this Protocol, 
     an indication as to whether the presenter of the case to the 
     competent authority of a Contracting State submitted a 
     Position Paper for consideration by the arbitration panel;
       b. An indication as to whether the determination of the 
     arbitration panel was accepted by each concerned person;
       c. The amount of income, expense, or taxation at issue in 
     the case as determined by reference to the filings that were 
     sufficient to set the commencement date of the case for 
     purposes of determining when arbitration is available; and
       d. The proposed resolutions (income, expense, or taxation) 
     submitted by each competent authority to the arbitration 
     panel.
       3. The Secretary of Treasury shall, in addition, prepare 
     and submit the detailed report described in paragraph (2) on 
     March 1 of the year following the year in which the first 
     report is submitted to the Joint Committee on Taxation and 
     the Committee on Finance of the Senate, and on an annual 
     basis thereafter for a period of five years. In each such 
     report, disputes that were resolved, either by a mutual 
     agreement between the relevant competent authorities or by a 
     determination of an arbitration panel, and noted as such in 
     prior reports may be omitted.
       4. The reporting requirements referred to in paragraphs (2) 
     and (3) supersede the reporting requirements contained in 
     paragraphs (2) and (3) of Section 3 of the 2 resolution of 
     advice and consent to the 2007 Canada Protocol, approved by 
     the Senate on September 23, 2008.

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