Details have become available of the amending protocol, signed on 7 September 2010, to the Luxembourg - Portugal Income and Capital Tax Treaty (1999), which entered into force on 18 May 2012 and generally applies from 1 January 2013.
The protocol provides for new exchange of information provisions.
Paragraph 2 of article 26 addresses privacy, noting that exchanged information may be disclosed only to bodies (including courts and administrative bodies) involved in the assessment, collection, administration, enforcement or prosecution or determination of appeals in relation to the taxes covered by the treaty. Such information may additionally be disclosed in public court proceedings and judicial decisions.
Paragraph 3(a)-(c) limits the required action on behalf of the contracting states. It provides that the parties are not obliged to:
|–||carry out administrative measures at variance with the laws and administrative practice of that or the other contracting state;|
|–||supply information which is not obtainable under the laws or in the normal course of the administration of that or the other contracting state; and|
|–||supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to public policy.|
Paragraph 4 provides that a contracting state may not decline to supply information solely because it has no domestic interest in such information.
Paragraph 5 provides that a contracting state cannot decline to supply information solely because the information is held by a bank, other financial institution, nominee or person acting in an agency or fiduciary capacity, or because it relates to ownership interests in a person.
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