1666 OF 2013

(July 16)

Official Journal No. 48,853 of 16 July 2013

CONGRESS OF THE REPUBLIC

By means of which the "Agreement between the Government of the Republic of Colombia and the Government of the United States of America for the Exchange of Tax Information", signed in Bogotá, D. C., is approved on 30 March. 2001.

THE CONGRESS OF THE REPUBLIC

Having regard to the text of the "Agreement between the Government of the Republic of Colombia and the Government of the United States of America for the Exchange of Tax Information", signed in Bogotá D. C., on 30 March 2001, which reads:

(To be transcribed: photocopy of the full text of the aforementioned Agreement, certified by the Coordinator of the Internal Legal Affairs Group of the International Legal Affairs Directorate of the Ministry of Foreign Affairs, document that is based on the files of that Ministry).

BILL NUMBER 250 OF 2013

by means of which the "Agreement between the Government of the Republic of Colombia and the Government of the United States of America for the Exchange of Tax Information" is approved, in Bogotá, D. C., on 30 June. March 2001.

The Congress of the Republic

Having regard to the text of the "Agreement between the Government of the Republic of Colombia and the Government of the United States of America for the Exchange of Tax Information", signed in Bogotá D. C., on 30 March 2001, which reads:

(To be transcribed: photocopy of the full text of the aforementioned Agreement, certified by the Coordinator of the Internal Legal Affairs Group of the International Legal Affairs Directorate of the Ministry of Foreign Affairs, document which is based on the files of that Ministry).

THE UNDERSIGNED COORDINATOR OF THE INTERNAL TREATY WORKING GROUP OF THE INTERNATIONAL LEGAL AFFAIRS DIRECTORATE OF THE MINISTRY OF FOREIGN AFFAIRS,

CERTIFIES:

What, the reproduction of the text above is a faithful and complete copy of the original text of the Agreement between the Government of the Republic of Colombia and the Government of the United States of America for the Exchange of Information Tax ", signed in Bogotá on March 30, 2001, which is based on the file of the Internal Working Group of the Treaties of the Directorate of International Legal Affairs.

Dada en Bogotá, D. C., at six (17) days of the month of April of two thousand thirteen (2013).

The Coordinator of the Internal Treaty Working Group, Directorate of International Legal Affairs,

ALEJANDRA VALENCIA GARTNER.

EXPLANATORY STATEMENT

Honorable Senators and Representatives:

On behalf of the National Government and in accordance with articles 150 numeral 16, 189 numeral 2 and 224 of the Political Constitution, we present a consideration of the honorable Congress of the Republic the Bill by means of which the " Agreement between the Government of the Republic of Colombia and the Government of the United States of America for the Exchange of Tax Information ", signed in Bogotá D. C., on March 30, 2001

BACKGROUND

The fight against circumvention and tax evasion has been a constant goal of Colombia in recent years. This is how recent tax reforms have inserted modifications to the Colombian tax system, seeking to close gaps and provide the tax administration with instruments that can reduce tax evasion and avoidance. Likewise, the reduction of tax evasion and avoidance was reflected as one of the goals in the National Development Plan 2010-2014 "Prosperity for All", in which it was established that efficiency in the management of public resources through The reduction of tax evasion and avoidance is one of the main strategies of effective public administration, being a guiding principle for promoting the exercise of one of the transversal axes (the "Good Government") that were embodied in the throughout the entire document that contains the basis of the National Development Plan₁.

The growing increase in cross-border economic relations and the international capital movement has created a major challenge for tax administrations in the fight against tax evasion and avoidance. Reality shows how, day by day, more and more elaborate maneuvers of tax evasion and avoidance are adopted, which take advantage of the asymmetry and lack of information between different tax administrations. This circumstance makes it imperative that the tax administration of suitable legal instruments be permanently provided with effective tax control and more efficient response to the challenge of technification and modernization that the current country demands.

The Colombian legislator, aware of these needs, has in the past devoted provisions governing the exchange of information at international level₂. Thus, in accordance with the provisions of the relevant regulations and with the provisions of the case law of the Constitutional Court₃, in order for the effective exchange of tax information between countries to be carried out, the subscription of international agreements.

This is how, with the development of the above mentioned, the thirty (30) of March of two thousand one (2001), the " Agreement between the Government of the Republic of Colombia and the Government of the United States of America for the Exchange of Tax Information " (hereinafter the" AIIT "). This mechanism, which allows and regulates the exchange of tax information, is of the utmost importance given the ever closer ties Colombia has with the United States of America, with whom Colombia maintains an intense trade in goods and services and a high flow and stock of investments.

Therefore, the mechanisms provided by the AIIT to be able to exchange tax information from Colombian and US taxpayers are important; information that will allow greater precision in the determination and collection of the taxes also obliging the tax administrations of both countries to handle the information obtained with the highest standards of confidentiality.

Finally, it is worth mentioning that the AIIT subscription is of great relevance, since it provides the necessary framework for the Colombian Government to conclude simplified or implementing agreements with the Government of the United States of America with the purpose of the tax authorities of both countries to be able to make automatic exchange of banking and financial information.

AIIT CONTENT

The AIIT subscribed on 30 March 2001 consists of eight articles. Article 1or sets the scope and scope of the Agreement, providing that the States shall exchange tax information that permits the determination, settlement and collection of taxes, in the interest of prevent tax evasion, fraud and tax evasion.

Article 2or sets the taxes included in the AIIT, which for the case of Colombia are: income tax and supplementary, sales tax (VAT), stamp duty and In the case of the United States of America, all federal taxes. In addition, that article states that the AIIT shall apply to any tax established after the subscription of the same which is of a nature identical or similar to that of the taxes initially covered by the AIIT.

Article 3or sets the definitions of the following terms: "competent authority", "national", "person", "tax", "information", "Requesting State", "Requested State", "Colombia" and " States United of America. "

Article 4or describes the information exchange obligations between the Contracting States. This article establishes that the information may be transmitted in the form (i) automatic, (ii) spontaneous, when in the course of the activities of a Contracting State it has knowledge of information that may be relevant to the other Contracting State, and (iii) at the request of a party, referring to the specific information to be exchanged, upon request by the competent authorities. In addition, this article, in its numeral 6, establishes the cases in which the States are not obliged to exchange information. Finally, the numeral 8 of this article states that any information received by a Contracting State shall be deemed to be reserved, in the same way as the information obtained under the national laws of that State is protected, and may to be disclosed only to persons or authorities of the requesting State, including the judicial and administrative bodies of the latter State, participating in the determination, settlement, collection and administration of the taxes which are the subject of the AIIT.

Article 5or establishes the mutual agreement procedure for the interpretation and application of the AIIT, as well as the possibility of communication between the Contracting States in order to comply with the stipulated in the AIIT. For its part, this article also establishes the possibility of developing and implementing programs aimed at achieving the purpose of the AIIT, among which are programs of technical assistance, training, exchange of technical knowledge, among others.

Article 6or defines the assumption of costs that the AIIT application generates. There, it is established that the ordinary costs will be assumed by the requested State and the extraordinary costs by the requesting State.

Article 7or establishes the validity of the AIIT, which shall be made when the exchange of letters is effected by the representatives of the Contracting States duly authorized for the purpose, in which it is confirmed that both parties have complied with the constitutional and legal requirements necessary to ratify the AIIT.

Article 8or refers to the termination of the AIIT, which shall remain in force until terminated by one of the Contracting States, upon notification to the other Contracting State by diplomatic means, with a minimum of three (3) months in advance.

For the reasons outlined above, the National Government, through the Minister of Foreign Affairs and the Minister of Finance and Public Credit, requests the honorable Congress of the Republic to approve the bill (i_aj">) by means of which the "Agreement between the Government of the Republic of Colombia and the Government of the United States of America for the Exchange of Tax Information", in Bogotá, D. C., is approved on 30 March. 2001.

Of the honorable Congressmen,

The Foreign Minister,

MARIA ANGELA HOLGUIN HANG.

The Minister of Finance and Public Credit,

MAURICIO CÁRDENAS SANTAMARIA.

EXECUTIVE BRANCH OF PUBLIC POWER

PRESIDENCY OF THE REPUBLIC

Bogotá D. C., April 25, 2013

Authorized. Submit to the consideration of the honorable Congress of the Republic for the constitutional effects.

(Fdo.) JUAN MANUEL SANTOS CALDERÓN

The Foreign Minister,

(Fdo.) Maria Angela Holguin Cuellar.

DECRETA:

Article 1o. Approve the "Agreement between the Government of the Republic of Colombia and the Government of the United States of America for the Exchange of Tax Information", signed in Bogotá, D. C., on 30 March 2001.

Article 2o. In accordance with the provisions of Article 1 of Law 7ª of 1944, the "Agreement between the Government of the Republic of Colombia and the Government of the United States of America for the Exchange of Tax Information", signed in Bogotá, D. C. March 30, 2001, which is approved by the first article of this law, will force the country from the date on which the international link with respect to it is perfected.

Article 3o. This law governs from the date of its publication.

Dada en Bogotá, D. C., a los ...

Presented to the honorable Congress of the Republic by the Minister of Foreign Affairs and the Minister of Finance and Public Credit.

The Foreign Minister,

Maria Angela Holguin Cuellar.

The Minister of Finance and Public Credit,

Mauricio Cardenas Santamaria.

ACT 424 OF 1998

(January 13)

by which the follow-up to the international conventions signed by Colombia is ordered.

The Congress of Colombia

DECRETA:

Article 1o. The National Government through the Foreign Ministry will submit annually to the Senate and Senate Foreign Relations Committees, and within the first thirty days of the legislative period, which begins every 20 years. July, a detailed report on how the existing International Conventions signed by Colombia with other States are being complied with and developed.

Article 2o. Each dependency of the National Government responsible for implementing the International Treaties of its competence and requiring reciprocity in them, will transfer the relevant information to the Ministry of Foreign Affairs and the Ministry of Foreign Affairs. Second.

Article 3o. The full text of this law shall be incorporated as an annex to any and all International Conventions that the Ministry of Foreign Affairs presents to the Congress.

Article 4o. This law governs from its promulgation.

The President of the honorable Senate of the Republic,

Amylkar Acosta Medina.

The Secretary General of the honorable Senate of the Republic,

Pedro Pumarejo Vega.

The President of the honorable House of Representatives,

Carlos Ardila Ballesteros.

The Secretary General of the honorable House of Representatives,

Diego Vivas Tafur.

COLOMBIA-NATIONAL GOVERNMENT

Publish and execute.

Dada en Santa Fe de Bogota, D. C., on January 13, 1998.

ERNESTO SAMPER PIZANO

The Foreign Minister,

Maria Emma Mejia Velez.

EXECUTIVE BRANCH OF PUBLIC POWER

PRESIDENCY OF THE REPUBLIC

Bogotá D. C., April 25, 2013

Authorized. Submit to the consideration of the honorable Congress of the Republic for the constitutional effects.

(Fdo.) JUAN MANUEL SANTOS CALDERÓN

The Foreign Minister,

(Fdo.) Maria Angela Holguin Cuellar.

DECRETA:

ARTICLE 1o. Approve the "Agreement between the Government of the Republic of Colombia and the Government of the United States of America for the Exchange of Tax Information", signed in Bogotá, D. C., on 30 June. March 2001.

ARTICLE 2o. In accordance with the provisions of Article 1 of Law 7ª of 1944, the " Agreement between the Government of the Republic of Colombia and the Government of the United States of America for the Exchange of "Tax Information", signed in Bogotá D. C., on March 30, 2001, which is approved by the first article of this law, will force the country from the date on which the international link with respect to it is perfected.

ARTICLE 3o. This law governs from the date of its publication.

The President of the honorable Senate of the Republic,

ROY MONTEALEGRE BARRIERS.

The Secretary General of the honorable Senate of the Republic,

GREGORIO ELJACH PACHECO.

The President of the honorable House of Representatives,

AUGUSTO POSADA SANCHEZ.

The Secretary General of the honorable House of Representatives,

JORGE HUMBERTO MANTILLA SERRANO.

REPUBLIC OF COLOMBIA NATIONAL GOVERNMENT

Communicate and comply.

Execute, upon review of the Constitutional Court, pursuant to article 241-10 of the Political Constitution.

Dada en Bogotá, D. C., 16 July 2013.

JUAN MANUEL SANTOS CALDERÓN

The Foreign Minister,

MARIA ANGELA HOLGUIN HANG.

The Minister of Finance and Public Credit,

MAURICIO CÁRDENAS SANTAMARIA.

* * *

1. National Planning Directorate. Bases of the National Development Plan 2010-2014 "Prosperity for All", Bogotá, 2011 pp. 479-480.

2. Among the rules that regulate the topic, are articles 693-1, 744 , and 746-1 of the Statute Tax.

3. See Constitutional Court rulings C-896 of 7 October 2003, M.P. Jaime Araujo Renteria and C-622 of 29 June 2004, M.P. Dr. Marco Gerardo Monroy Cabra, between others.