Notes on the Signing of the Amendment… US Luxembourg, May 20, 2009

EmbassyoftheUnitedStaresofAmerica
TheGrandDuchyofLuxembourg
May20,2009
Excellency,
IhavethehonortorefertotheConventionbetweentheGovernmentoftheUnited
States
ofAmericaandtheGovernmentoftheGrandDuchyofLuxembourgforthe
Avoidance
ofDoubleTaxationandthePreventionofFiscalEvasionwithrespect
totaxesonIncomeandCapital,signedat Luxembourg,April3,1996,
asamended
bytheProtocolsignedtoday(the"Convention")andtoproposeonbehalf
ofthe
Government
oftheUnitedStatesthefollowingunderstandings:
I.ItisunderstoodthatthecompetentauthorityoftherequestedStateshallprovide
uponrequestbythecompetentauthority
oftherequestingStateinformationforthe
purposesreferredto
inparagraphIofArticle28.Suchinformationshallbe
exchangedwithoutregardtowhethertherequestedStateneedssuchinformation
foritsowntaxpurposesortheconductbeinginvestigatedwouldconstitutea crime
underthelaws
oftherequestedStateifithadoccurredintheterritoryofthe
requestedState.
2.Pursuanttoparagraph5ofArticle28,itisunderstoodthateachContracting
Stateshallensurethatitscompetentauthorityhastheauthoritytoobtainand
provideuponrequest:
a)informationheldbybanks,otherfinancialinstitutions,andanypersonactingin
anagencyorfiduciarycapacityincludingnomineesandtrustees;
b)informationregardingtheownership
ofcompanies,partnerships,trusts,
foundationsandotherpersons,includingownershipinformationonallsuch
personsinanownershipchain;inthecaseoftrusts,infonnationonsettlors,
trusteesandbeneficiaries;and
inthecaseoffoundations,informationonfounders,
membersofthefoundationcouncilandbeneficiaries;provided,however,thata
requestedState
isnotobligedtoprovideinformationwhichisneitherheldbyits
authoritiesnorinthepossessionorcontrolofpersonswhoarewithinitsterritorial
jurisdiction.Forpurposesoftheprecedingsentence,"authorities"includesall

-2-
governmentagencies,politicalsubdivisions,andlocalauthorities.Further,this
ConventiondoesnotcreateanobligationontheContractingStatestoobtainor
provideownershipinformationwithrespecttopubliclytradedcompaniesorpublic
collectiveinvestmentfundsorschemesunlesssuchinformationcanbeobtained
withoutgivingrise
todisproportionatedifficulties.
3.ThecompetentauthorityoftheapplicantStateshallprovidethefollowing
informationtothecompetentauthority
oftherequestedStatewhenmakinga
requestforinformationundertheConventiontodemonstratetheforeseeable
relevance
oftheinformationtotherequest:
(a)theidentity
ofthepersonunderexaminationorinvestigation;
(b)a statement
oftheinformationsoughtincludingitsnatureandtheformin
whichtheapplicantStatewishestoreceivetheinformationfromtherequested
State;
(c)thetaxpurposeforwhichtheinfornlation
issought;
(d)grounds
forbelievingthattheinformationrequestedisheldintherequested
Stateor
isinthepossessionorcontrolofa personwithinthejurisdictionofthe
requestedState;
(e)totheextentknown,thenameandaddress
ofanypersonbelievedtobein
possessionoftherequestedinformation;
(I)a statementthattherequestisinconformitywiththelawandadministrative
practices
oftheapplicantState,thatiftherequestedinformationwaswithinthe
jurisdiction
oftheapplicantStatethenthecompetentauthorityoftheapplicant
Statewould
beabletoobtaintheinformationunderthelawsoftheapplicantState
orinthenormalcourseofadministrativepracticeandthatitis inconformitywith
thisConvention;
(g)a statementthattheapplicantStatehaspursuedallmeansavailableinitsown
territorytoobtaintheinformation,exceptthosethatwouldgiveriseto
disproportionatedifficulties.

4.ThecompetentauthoritiesoftheContractingStateswillworktogetherto
developmutualproceduresfortheexchange
ofinformation,including,(i)with
ecttospecificrequests,theformformakinga specificrequest,thetimeand
ner
ofrespondingtoa request,andthepossibilityfordeclininga request,and
therproceduresorforms
ofassistanceconcerningtheefficientexchangeof
rmation.
e foregoingunderstandingsmeetwiththeapprovaloftheGovernmentofthe
ndDuchy
ofLuxembourg,I havethefurtherhonortoproposethatthisNote
youraffirmativeNote
inreplyshallconstituteanagreementbetweenour
ernmentswhichshallbecomeanintegralpart
oftheConventiononthedateof
y intoforceoftheProtocol.
ept,YourExcellency,theexpression
ofmyhighestconsiderations.
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LEGOUVERNEMENT
DUGRAND-DUCHEDELUXEMBOURG
MinisteredesFinances
LeMinistreduTresoretduBudget
Luxembourg,Ie20mai2009
Excellence,
J'ait'honneurd'accuserreception
devotrelettredu20mai2009,libelleecommesuit:
"IhavethehonortorefertotheConventionbetweentheGovernmentoftheUnitedStatesof
AmericaandtheGovernmentoftheGrandDuchyofLuxembourgfortheAvoidanceofDouble
TaxationandthePrevention
ofFiscalEvasionwithrespecttotaxesonIncomeandCapital,
signedatLuxembourg,April
3,1996,asamendedbytheProtocolsignedtoday(the
"Convention")andtopropose
onbehalfoftheGovernmentoftheUnitedStatesthefollowing
understandings:
1,ItisunderstoodthatthecompetentauthorityoftherequestedStateshallprovideuponrequest
bythecompetentauthorityoftherequestingStateinformationforthepurposesreferredtoin
paragraph1 ofArticle28.Suchinformationshallbeexchangedwithoutregardtowhetherthe
requestedStateneedssuchinformationforitsowntaxpurposesortheconductbeing
investigatedwouldconstitutea crimeunderthelawsoftherequestedStateif ithadoccurred
in
theterritoryof therequestedState.
2.Pursuanttoparagraph5 ofArticle28,itisunderstoodthateachContractingStateshallensure
thatitscompetentauthorityhastheauthoritytoobtainandprovideuponrequest:
a)informationheldbybanks,otherfinancialinstitutions,andanypersonactinginan
agencyorfiduciarycapacityincludingnomineesandtrustees;
b)information regardingtheownershipofcompanies,partnerships,trusts,foundations
andotherpersons,includingownershipinformation
onallsuchpersonsinanownership
chain;
inthecaseoftrusts,informationonsettlors,trusteesandbeneficiaries;andinthe
caseoffoundations,informationonfounders,membersofthefoundationcounciland
beneficiaries;provided,however,thatarequestedState
isnotobligedtoprovide
informationwhich
isneitherheldbyitsauthoritiesnorinthepossessionorcontrolof
personswhoarewithinitsterritorialjurisdiction.Forpurposes
oftheprecedingsentence,
"authorities"includesallgovernmentagencies,politicalsubdivisions,andlocal
authorities.Further,thisConventiondoesnotcreate
anobligationontheContracting
States
toobtainorprovideownershipinformationwithrespecttopubliclytraded
companiesorpubliccollectiveinvestmentfundsorschemesunlesssuchinformationcan
beobtainedwithoutgivingrisetodisproportionatedifficulties,
.I..
SonExcellence
MadameAnnLouiseWAGNER
AmbassadeurdesEtats-Unisd'Amerique
22,boulevardEmmanuelServais
L-2535LUXEMBOURG
I7931luxellibourg

- 2 -
3.ThecompetentauthorityoftheapplicantStateshallprovidethefollowinginformationtothe
competentauthority
oftherequestedStatewhenmakinga requestforinformationunderthe
Conventiontodemonstratetheforeseeablerelevanceoftheinformationtotherequest:
(a)theidentity
ofthepersonunderexaminationorinvestigation;
(b)a statementoftheinformationsoughtincludingitsnatureandtheforminwhichthe
applicantStatewishestoreceivetheinformationfromtherequestedState;
(c)thetaxpurposeforwhich
theinformationis sought;
(d)groundsforbelievingthattheinformationrequestedis heldintherequestedStateor
is
inthepossessionorcontrolofa personwithinthejurisdictionoftherequestedState;
(e)totheextentknown,thenameandaddress
ofanypersonbelievedtobein
possessionoftherequestedinformation;
(f)a statementthattherequestis
inconformitywiththelawandadministrativepractices
oftheapplicantState,thatif therequestedinformationwaswithinthejurisdictionoftheapplicant
Statethenthecompetentauthority
oftheapplicantStatewouldbeabletoobtaintheinformation
underthelaws
oftheapplicantStateorin thenormalcourseofadministrativepracticeandthatit
is
inconformitywiththisConvention;
(g)astatementthattheapplicantStatehaspursuedallmeansavailableinitsown
territorytoobtaintheinformation,exceptthosethatwould giverisetodisproportionatedifficulties.
4.ThecompetentauthoritiesoftheContractingStateswillworktogethertodevelopmutual
proceduresfortheexchange
ofinfonnation,including,(i)withrespecttospecificrequests,the
formformakinga specificrequest,thetimeandmanner
ofrespondingtoa request,andthe
possibilityfordeclininga request,and
(ii)otherproceduresorformsofassistanceconcerningthe
efficientexchange
ofinformation.
If theforegoingunderstandingsmeetwiththeapproval
oftheGovernmentoftheGrandDuchyof
Luxembourg,I havethefurtherhonortoproposethatthisNoteandyouraffirmativeNoteinreplyshall
constitute
anagreementbetweenourGovernmentswhichshallbecomeanintegralpartofthe
Conventiononthedate
ofentryintoforceoftheProtocol."
J'aiI'honneurdeconfirmerI'accorddu
Grand-DucMdeLuxembourgsurIecontenudevotre
lettre.Parconsequentvotrelettre
etcetteconfirmationconstituentensembleunAccordentrenos
gouvernementslequeldeviendrapartieintegrantedelaConvention
aladatedeI'entreeen
vigueurduProtocole.
Veuiliezagreer,Excellence,I'assurancedematreshauteconsideration.
\~--
LucFrieden