Approves The Convention On Mutual Administrative Assistance In Tax Matters, Adopted In Strasbourg On 25 January 1988, As Revised By Review Protocol To The Convention On Mutual Assistance In Tax Matters, Adopted In Paris, In

Original Language Title: Aprova a Convenção relativa à Assistência Administrativa Mútua em Matéria Fiscal, adotada em Estrasburgo, em 25 de janeiro de 1988, conforme revista pelo Protocolo de Revisão à Convenção relativa à Assistência Mútua em Matéria Fiscal, adotado em Paris, em

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1 motion for a resolution paragraph 74/XII the Convention on mutual administrative Assistance in tax matters was adopted in Strasbourg on 25 January 1988 (Convention), and revised by review Protocol to the Convention on mutual administrative Assistance in tax matters, adopted in Paris on May 27 2010 (Protocol), which entered into force on 1 June 2011. Under the Protocol, it was established that any State which becomes a party to the Convention after the entry into force of that, becomes a party to the Convention in the version revised by this Protocol, unless express different intentions. In this sense, the Portuguese Republic intends to become a party to the Convention, as revised by the Protocol of review of 2010. The benefits of the globalization of the world economy translated into increasing development of international movements of people, capital, goods and services also entail an increase of the possibilities of tax evasion and tax fraud, demanding a wider and intense cooperation between tax authorities. The transnational dimension of the commercial and financial operations, in particular those carried out within the business groups impose the need for coordination of efforts between the tax authorities of States in order to facilitate a correct determination of taxes withheld in each tax jurisdiction and, at the same time, ensure protection against discrimination and double taxation.



2 Only a multilateral instrument that includes all forms of administrative assistance in tax matters, for all kinds of taxes, is likely to lay the groundwork for effective cooperation in combating different forms that may be the phenomena of tax fraud and evasion. The forms of administrative cooperation on tax matters, the Organization for economic cooperation and development (OECD) and the Council of Europe, while respecting the national sovereignty and the rights of taxpayers, constitute a new framework for cooperation which enables States face more effectively the international phenomena of tax evasion and tax fraud. The Convention is intended to allow the parties-members of those two organisations and non-member countries-several types of administrative cooperation in the form of: Exchange of information (on request, automatic and spontaneous), simultaneous tax checks, tax checks abroad, assistance in collection and service of documents, to combat the phenomena of international tax evasion and tax fraud and in General, the default behaviour of tax duties. The entry into force of the Convention represents, for Portugal, an enlargement of the number of countries with which come into being the possibility for mutual assistance in tax matters and, even in relation to the countries with which it has already been celebrated a bilateral Convention designed to avoid double taxation, determines a significant increment in the framework of existing cooperation, both in terms of taxes covered how the forms of administrative assistance provided. In view of the above, it is in the interest of Portugal to its full membership of this multilateral instrument. With the adoption of this Convention are also adopted two statements, under which the Portuguese Republic indicates that taxes apply this Convention and what the meaning of the term ' competent authority ' for the purposes of the same.

3 Are still approved three reservations, by which the Portuguese Republic, in accordance with paragraph 1 of article 30 of the Convention, reserves the right not to provide assistance with regard to compulsory social security contributions. So: under d) of paragraph 1 of article 197 of the Constitution, the Government presents to the Assembly of the Republic the following resolution: article 1 Approval to approve the Convention on mutual administrative Assistance in tax matters (Convention), adopted in Strasbourg on 25 January 1988, as revised by review Protocol to the Convention on mutual assistance in tax matters , adopted in Paris on 27 May 2010, the text of which, in the authenticated version in the English language, as well as the respective translation into Portuguese language, published in annex. Article 2 Bookings by adopting this Convention the Portuguese Republic formulates the following reserves: a) in accordance with paragraph 1) article 30 of the Convention, the Portuguese Republic declares that it reserves the right not to provide any form of assistance in relation to compulsory social security contributions, set out in article ii) of point (b)) of paragraph 1 of article 2 of the Convention. b) In accordance with point (b)) of paragraph 1 of article 30 of the Convention, the Portuguese Republic declares that it reserves the right not to provide assistance in enforcement of tax credits or penalties in respect of compulsory social security contributions, set out in article ii) of point (b)) of paragraph 1 of article 2 of the Convention.

4 c) pursuant to paragraph (d)) of paragraph 1 of article 30 of the Convention, the Portuguese Republic declares that it reserves the right not to provide assistance regarding service of documents in relation to compulsory social security contributions, set out in article ii) of point (b)) of paragraph 1 of article 2 of the Convention. Article 3 claims to approve this Convention the Portuguese Republic formulates the following declarations: a) in accordance with article 2 of the Convention, the Portuguese Republic declares that in Annex A the following taxes to which the Convention applies: (i)) (i))) (a) of paragraph 1 of article 2:-personal income tax;
-Personal income tax Conferences;
-State Surcharge. II) (i))) (b) of paragraph 1 of article 2:-Municipal Surcharge. III)) (A) (iii))) (b) of paragraph 1 of article 2:-stamp duty, in the case of free streams of goods. IV)) (B) (iii))) (b) of paragraph 1 of article 2:-property tax;
-City tax real estate transfer tax.

5 v)) (C) (iii))) (b) of paragraph 1 of article 2:-value added tax. vi)) (D) (iii))) (b) of paragraph 1 of article 2:-excise duties. VII)) (E) (iii))) (b) of paragraph 1 of article 2:-single tax movement;
-Vehicle tax. b) in accordance with article 3 of the Convention, the Portuguese Republic declares that in Annex B as ' competent authorities ', for the purposes of the Convention, the Minister of finance, the Director General of the tax authority and customs or his authorized representatives.

Seen and approved by the Council of Ministers of April 2014 10 the Prime Minister and State Minister for Foreign Affairs the Minister of Presidency and Parliamentary Affairs

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