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Note: This Treaty may be impacted by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI). MLI impact on Tax Treaties is available with the Orbitax International Tax Research & Compliance Expert.

ARTICLE 28

Collection Assistance

(1) The Contracting States shall assist each other in the collection of their tax claims. This assistance is not restricted by Articles 1 and 2. The competent authorities of the Contracting States may, by mutual agreement, settle the mode of application of this Article.

(2) The term "tax claim" as used in this Article means an amount owed in respect of taxes of every kind or description imposed on behalf of the Contracting States, their political or administrative subdivisions or their collectivities insofar as the taxation there under is not contrary to this Agreement or to any other instrument to which the Contracting States are parties, as well as interest, administrative penalties and costs of collection or conservancy pertaining to such taxes.

(3) When a tax claim of a Contracting State that is recoverable under the laws of that State is owed by a person who, at that time, cannot, under these laws, prevent its collection, that tax claim shall, at the request of the competent authorities of that State, be accepted for purposes of its collection by the competent authorities of the other Contracting State. That tax claim shall be collected by that other State in accordance with the provisions of the laws applicable to the collection of its own taxes as if the tax claim were a tax claim of that other State.

(4) Where a tax claim of a Contracting State is a claim in respect of which that State may, under its laws, take precautionary measures to ensure its collection, that tax claim shall, at the request of the competent authorities of that State, be accepted for the purpose of adoption of precautionary measures by the competent authorities of the other Contracting State. That other State must take precautionary measures with respect to that tax claim in accordance with its laws as if it were a tax claim of that other State even if, when such measures are applied, the tax claim is not recoverable in the first mentioned State or is owed by a person who has the right to prevent its collection.

(5) Notwithstanding the provisions of paragraphs (3) and (4), the time limits and priority applicable under the laws of a contracting State, to a tax claim because of its nature as such shall not apply to a tax claim accepted by that State for the purposes of paragraph (3) or (4). Moreover, a tax claim accepted by a Contracting State for the purposes of paragraphs (3) or (4) cannot be granted any priority in that State under the laws of the other Contracting State.

(6) The procedures concerning the existence, validity or the amount of a tax claim of a Contracting State shall not be subject to the courts or administrative bodies of the other Contracting State.

(7) If at any time after an application has been made by a Contracting State under paragraphs (3) or (4) and before the other State has collected and remitted the relevant tax claim amount to the first mentioned State, that tax claim shall cease to be:

  • (a) in the case of a request presented by virtue of paragraph (3), a tax claim of the first mentioned State that is recoverable under the laws of that State and is owed by a person who, at that time , cannot, under the laws of that State, prevent its collection/recovery , or
  • (b) in the case of a request under paragraph (4), a tax claim of the first mentioned State in respect of which that State may, under its laws, take precautionary measures to ensure its collection, the competent authorities of the first mentioned State shall promptly notify this fact to the competent authorities of the other State and the first mentioned State shall, based on the option of the other State, suspend or withdraw its request.

(8) The provisions of this Article shall in no way be construed so as to impose upon a Contracting State the obligation:

  • (a) to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State;
  • (b) to take measures that are contrary to public policy;
  • (c) to provide assistance if the other Contracting State has not taken all reasonable measures of collection or conservancy, as appropriate, available under its laws or administrative practice;
  • (d) to assist in cases where the resulting administrative burden for that State is clearly disproportionate to the benefits that can be derived by the other Contracting State.