[Weekly Compilation of Presidential Documents Volume 44, Number 18 (Monday, May 12, 2008)]
[Page 665]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
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.