    [Public Papers of the Presidents of the United States: George W. Bush (2008, Book I)]
    [May 6, 2008]
    [Pages 645-646]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Message to the Senate Transmitting the Iceland-United States Taxation
    Convention
    May 6, 2008

    To the Senate of the United States:
        I transmit herewith, for Senate advice and consent to ratification,
    the Convention Between the Government of the United States of America
    and the Government of Iceland for the Avoidance of Double Taxation and
    the Prevention of Fiscal Evasion with Respect to Taxes on Income, and
    accompanying Protocol, signed on October 23, 2007, at Washington, D.C.
    (the ``proposed Treaty''). The proposed Treaty would replace the
    existing income tax Convention with Iceland that was concluded in 1975
    (the ``existing Treaty''). Also transmitted for the information of the
    Senate is the report of the Department of State with respect to the
    proposed Treaty.
        The proposed Treaty contains a comprehensive provision designed to
    prevent so-called treaty shopping. The existing Treaty contains no such
    protections, resulting in substantial abuse of the existing Treaty's
    provisions by third-country investors. The proposed Treaty also reflects
    changes to U.S. and Icelandic law and tax treaty policy since 1975.
        I recommend that the Senate give early and favorable consideration
    to the proposed Treaty and give its advice and consent to ratification.

                                                              George W. Bush

     The White House,

     May 6, 2008.

    [[Page 646]]