Administrative Assistance in the Collection of Taxes
(1) The Contracting State will provide each other with mutual administrative assistance in the collection of tax claims. This administrative assistance is not restricted through Article 1 and 2. The competent authorities of the Contracting States can decide in mutual Convention who this Article is to be implemented.
(2) The term "tax claim" used in this Article means an amount that is owed based on taxes of any kind and designation that are collected for the account of a Contracting State, one of its provinces or its geographic sub-divisions, to the extent that the taxation does not contradict this Convention or other Conventions to which the Contracting States belong as signatories, as well as the interest, finds or collection costs associated with this amount.
(3) If the tax claim of a Contracting States is enforceable under the law of this State and it is owed by a person who, at this time cannot prevent the collection under the laws of this States, this tax claim will be recognized by the competent authority of the other Contracting State on the request of the competent authority of this State for the purposes of collection. The tax claim will be collected by the other State following its provisions of law on the enforcement and collection of its own taxes, as if the tax claim were a tax claim of the other State.
(4) If a tax claim of one Contracting State is a claim for which this State can initiate measures to secure collection under its own laws, then this tax claim will be recognized on the request of the competent authority of this State for the purposes of initiating measures to secure the claim by the competent authority of the other Contracting State. The other State will initiate the measures with respect to this tax claim according to its provisions of law as if the tax claim were a tax claim of this other State, even if the tax claim is not enforceable at the time that the measures were initiated in the aforementioned State or if the claim was owed by a person who is entitled to prevent collection.
(5) Irrespective of paragraphs (3) and (4), a tax claim recognized by a Contracting State for the purposes of paragraphs (3) or (4) as such is not subject in this State to the expiration deadlines or the regulations on preferential treatment of a tax claim under the law of this State. Furthermore, a tax claim which was recognized by a Contracting State for the purposes of paragraphs (3) or (4), does not have the precedence in this State which this tax claim has under the law of the other Contracting State.
(6) Procedures in connection with the existence, validity or amount of the tax claim of a Contracting State cannot be initiated in the courts or administrative authorities of the other Contracting States.
(7) If the tax claim in question becomes invalid, after the request was submitted by a Contracting State according to paragraphs (3) or (4) and before the other Contracting State has collected the tax claim and paid it out to the former State:
- (a) in the case of a request under paragraph (3), losing its character as a tax claim of the former State, which is enforceable under the law of this State and is owed by a person who at this time cannot prevent the collection under the law of this State or
- (b) in the case of a request under paragraph (4), losing its character as a tax claim of the former State for which this State can initiate measures under its law to secure collection,
Then the competent authority of the former States will immediately notify the competent authority of the other States and at the discretion of the other State will either suspend or withdraw the request.
(8) This Article is not to be interpreted as if it obligated a Contracting State,
- (a) to carry out administrative measures that deviate from the laws and administrative practice of this or the other Contracting State;
- (b) to carry out measures that would be contrary to the public order (ordre public);
- (c) to provide administrative assistance if the other Contracting State has not exhausted all reasonable measures for securing or collecting the claims that are possible under its laws or administrative practice;
- (d) to provide administrative assistance in cases in which the administrative expenses for this State would clearly be disproportionate to the benefit to the other Contracting State from collection.