|The White House
President George W. Bush
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For Immediate Release
Office of the Press Secretary
September 13, 2004
Message to the Senate of the United States
TO THE SENATE OF THE UNITED STATES:
With a view to receiving the advice and consent of the Senate to ratification, I transmit the Second Protocol Amending the Convention Between the United States of America and Barbados for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income Signed on December 31, 1984, signed at Washington on July 14, 2004. Also enclosed for the Senate's information is an exchange of notes with attached Understandings, which provide clarification with respect to the application of the Convention, as amended, in specified cases. Also transmitted for the information of the Senate is the report of the Department of State with respect to the Protocol.
The Protocol updates the existing Convention to bring it into close conformity with current U.S. tax treaty policy and to ensure that the Convention cannot be used inappropriately to secure tax reductions in circumstances where there is no risk of double taxation. The Protocol would modernize the Convention's anti-treaty-shopping provision. The Protocol also updates the Convention to take account of a 1996 change in the Internal Revenue Code relating to the tax treatment of certain former long-term residents of the United States. The exchange of notes with attached Understandings provides guidance to taxpayers and each government regarding the intended interpretation of certain provisions of the Convention, as amended.
I recommend that the Senate give early and favorable consideration to this Protocol and give its advice and consent to ratification.
GEORGE W. BUSH
THE WHITE HOUSE,
September 13, 2004.
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