Replaced by new DTA, which applies in UK from 1st April 2003 for
CT, 6th April 2003 for IT and 1st January 2004 for PRT. For US
withholding taxes it applies from 1st May 2003 and for other US
taxes from 1st January 2004. See DT19939R.
(1) The competent authorities of the Contracting States
shall exchange such information (being information available under
the respective taxation laws of the Contracting States) as is
necessary for carrying out the provisions of this Convention or for
the prevention of fraud or the administration of statutory
provisions against legal avoidance in relation to the taxes which
are the subject of this Convention. Any information so exchanged
shall be treated as secret but may be disclosed to persons
(including a court or administrative body) concerned with the
assessment, collection, enforcement or prosecution in respect of
taxes which are the subject of this Convention. No information
shall be exchanged which would disclose any trade, business,
industrial or professional secret or any trade process.
(2) Each of the Contracting States will endeavour to collect
on behalf of the other Contracting State such amounts as may be
necessary to ensure that relief granted by this Convention from
taxation imposed by such other Contracting State does not enure to
the benefit of persons not entitled thereto. The United Kingdom
will be regarded as fulfilling this obligation by the continuation
of its existing arrangements for ensuring that relief from taxation
imposed by the laws of the United States does not enure to the
benefits of persons not entitled thereto.
(3) Paragraph (2) of this Article shall not impose upon
either of the Contracting States the obligation to carry out
administrative measures which are of a different nature from those
used in the collection of its own tax, or which would be contrary
to its sovereignty, security or public policy. In determining the
administrative measures to be carried out, each Contracting State
may take into account the administrative measures and practices of
the other Contracting State in recovering taxes on behalf of the
first-mentioned Contracting State.
(4) The competent authorities of the Contracting States
shall consult with each other for the purpose of co-operating and
advising in respect of any action to be taken in implementing this
Article.
