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For Immediate Release
Office of the Press Secretary
June 21, 2007
Message to the Senate of the United States
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 Kingdom of Belgium for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income, and accompanying Protocol, signed on November 27, 2006, at Brussels (the "proposed Treaty"). The proposed Treaty will replace the existing income tax treaty between the two countries that was concluded in 1970 and amended by protocol in 1987. 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 eliminates the withholding tax on certain cross-border dividend payments, including dividend payments to pension funds. The proposed Treaty also provides for mandatory arbitration of certain cases brought before the competent authorities. This provision is only the second of its kind in a proposed U.S. tax treaty. In addition, the proposed Treaty includes provisions, consistent with current U.S. tax treaty policy, that are designed to prevent so called treaty shopping.
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,
June 21, 2007.
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