ARTICLE 28

Collection Assistance

(1) The Contracting States agree to provide official assistance to each other insofar as the collection of tax claims is concerned. Such official assistance shall not be limited by Articles 1 and 2. The competent authorities of the Contracting States shall come to an agreement on how to implement this Article.

(2) The term "tax claim" as used in this Article refers to an amount which is owed in respect of taxes of any type and description levied on account of the Contracting States or one of their political subdivisions or local authorities as long as this is not in violation of this Convention or other international conventions to which the Contracting States have acceded. This term shall also include any associated interest, monetary penalties, and any costs of collecting and securing such amount.

(3) In case the tax claim of a Contracting State is enforceable in accordance with the laws of this State and is owed by a person which, at that time and in accordance with the laws of this State, can not prevent such enforcement, this tax claim is accepted, at the request of the competent authority of this State, by the competent authority of the other Contracting State for the purpose of collection by the competent authority of the other Contracting State. The tax claim is collected by the other State in accordance with its legal regulations regarding collection of its own taxes in the same manner as if such tax claim were a tax claim of this other State.

(4) In case the tax claim of a Contracting State is a claim for which this State can, in accordance with its laws, undertake precautionary measures to ensure collection, such tax claim is accepted, at the request of the competent authority of this State, for the purpose of initiating precautionary measures by the competent authority of the other Contracting State. Such other State shall proceed to initiate, in accordance with its own legal regulations, precautionary measures with respect to this tax claim in the same manner as if the tax claim were a tax claim of this other State, even in case the tax claim is not enforceable in the first-mentioned State at the time such measures are undertaken, or is owed by a person who is entitled to avoid collection.

(5) Notwithstanding the provisions provided in paragraphs (3) and (4), a claim accepted by a Contracting State for the purposes of paragraphs (3) and (4) as such shall not be subject in this State to the limits of exclusion or the provisions regarding preferential treatment of tax claims in accordance with the laws of this State. In addition, a tax claim which has been accepted by a Contracting State for the purposes of paragraphs (3) and (4) does not enjoy in this State the same priority which this tax claim would be afforded in accordance with the laws of the other Contracting State.

(6) Legal proceedings in connection with the amount, settlement date, or existence of a tax claim in a Contracting State may be introduced only at the courts or other administrative organs of that State. This Article shall not justify any rights for the introduction of such legal proceedings at the courts or administrative bodies of the other Contracting State.

(7) In case the respective tax claim loses, after a request has been submitted by a Contracting State in accordance with paragraphs (3) and (4) and before the other Contracting State has collected the respective tax claim and forwarded it to the first-mentioned State:

• (a) in the case of a request that is submitted in accordance with paragraph (3), its nature of a tax claim of the first-mentioned State which can be enforced in accordance with the laws of this State and which is owed by a person who, at this point in time and in accordance with the laws of this State, can not prevent collection, or
• (b) in the case of a request that is submitted in accordance with paragraph (4), its nature of a tax claim of the first-mentioned State for which this State, in accordance with its laws, can undertake measures to ensure its collection, The competent authorities then in the Requesting State shall inform the competent authorities in the State from which assistance was requested and withdraw or suspend the request at the discretion of the other Contracting State.

(8) In no case shall the provisions of this Article be construed as imposing upon the Contracting State the obligation:

• (a) to take administrative measures at variance with the laws and administrative practices of that state;
• (b) to take measures contrary to public order;
• (c) provide official assistance in cases where the Requesting State did not first exhaust all possible means by which the tax claim, according to the laws and common administrative practices of that State;
• (d) to supply legal assistance if it is determined that the costs of prosecuting a given tax claim is disproportionate to the monetary benefit of the Requesting State from the claim.