    [Public Papers of the Presidents of the United States: George W. Bush (2008, Book I)]
    [March 13, 2008]
    [Page 371]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Message to the Senate Transmitting the Protocol Amending the Canada-
    United States Taxation Convention
    March 13, 2008

    To the Senate of the United States:
        I transmit herewith, for Senate advice and consent to ratification,
    the Protocol Amending the Convention Between the United States of
    America and Canada with Respect to Taxes on Income and on Capital done
    at Washington on September 26, 1980, as Amended by the Protocols done on
    June 14, 1983, March 28, 1984, March 17, 1995, and July 29, 1997, signed
    on September 21, 2007, at Chelsea (the ``proposed Protocol''). The
    proposed Protocol would amend the existing income tax Convention between
    the United States and Canada that was concluded in 1980, as amended by
    prior protocols (the ``existing Treaty''). Also transmitted for the
    information of the Senate is the report of the Department of State with
    respect to the proposed Protocol.
        The proposed Protocol would eliminate withholding taxes on cross-
    border interest payments. In addition, the proposed Protocol would
    coordinate the tax treatment of contributions to, and other benefits of,
    pension funds for cross-border workers. The proposed Protocol also
    includes provisions related to the taxation of permanent establishments,
    so-called dual-resident corporations, income derived through certain
    entities that are considered fiscally transparent, and former U.S.
    citizens and long-term residents. The proposed Protocol further
    strengthens the existing Treaty's provisions that prevent the Treaty's
    inappropriate use by third-country residents. The proposed Protocol also
    provides for mandatory resolution of certain cases before the competent
    authorities.
        I recommend that the Senate give early and favorable consideration
    to the proposed Protocol and give its advice and consent to
    ratification.

                                                              George W. Bush

     The White House,

     March 13, 2008.

    Note: This message was released by the Office of the Press Secretary on
    March 14.