[Weekly Compilation of Presidential Documents Volume 38, Number 46 (Monday, November 18, 2002)]
[Page 2036]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Message to the Senate Transmitting the United Kingdom-United States 
Taxation Convention

November 14, 2002

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 the United Kingdom of Great Britain and Northern 
Ireland for the Avoidance of Double Taxation and the Prevention of 
Fiscal Evasion with Respect to Taxes on Income and on Capital Gains, 
signed at London on July 24, 2001, together with an exchange of notes, 
as amended by the Protocol signed at Washington on July 19, 2002 (the 
``Convention''). I also transmit the report of the Department of State 
concerning the Convention.
    The proposed Convention transmitted herewith would replace the 
Convention Between the Government of the United States of America and 
the Government of the United Kingdom of Great Britain and Northern 
Ireland for the Avoidance of Double Taxation and the Prevention of 
Fiscal Evasion with Respect to Taxes on Income and Capital Gains, signed 
at London on December 31, 1975, as modified by a subsequent agreement 
and protocols.
    This Convention, which is similar to tax treaties between the United 
States and other developed nations, provides for maximum rates of tax to 
be applied to various types of income, protection from double taxation 
of income, and for the exchange of information. The Convention also 
contains rules making its benefits unavailable to persons who are 
engaged in treaty shopping. The proposed Convention is the first U.S. 
income tax convention to provide a zero rate of withholding on certain 
direct investment dividends.
    I recommend that the Senate give early and favorable consideration 
to this Convention, and that the Senate give its advice and consent to 
ratification.
                                                George W. Bush
 The White House,
 November 14, 2002.