Exchange of Notes (1991 Protocol)

EXCHANGE OF NOTES (1991 PROTOCOL)

I

DEPARTMENT OF STATE

Washington, December 18, 1991

His Excellency:

Sir WILLIAM DOUGLAS

Ambassador of Barbados

I have the honor to refer to the Protocol signed today amending the Convention between the United States of America and Barbados for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and inform you on behalf of the Government of the United States of America of the following:

During the negotiations leading to the conclusion of the Protocol signed today, the negotiators developed an agreed Memorandum of Understanding intended to give guidance both to taxpayers and tax authorities of our two countries in interpreting Article 22 (Limitation on Benefits). The guidance represents the current views of our two countries with respect to Article 22. Future developments, including experience in administering the Convention as amended by the Protocol, and Article 22, may lead the competent authorities to develop and publish further developments and understandings.

If this position meets the approval of the Government of Barbados, this Note and your Note in reply thereto will indicate that our Governments share a common understanding of the role of the Memorandum of Understanding relating to the Protocol.

Accept, Excellency, the expression of my highest consideration.

EUGENE J. MCALLISTER

(For the Acting Secretary of State).

II

EMBASSY OF BARBADOS

Washington, DC, December 18, 1991

Hon. JAMES BAKER III,

Secretary of State,

Department of State, Washington, D.C.

Excellency, I have the honour to refer to the Protocol signed today amending the Convention between the United States of America and Barbados for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to taxes on Income and to inform you on behalf of the Government of Barbados of the following:

During the negotiations leading to the conclusion of the Protocol signed today, the negotiators developed an agreed Memorandum of Understanding intended to give guidance both to taxpayers and tax authorities of our two countries in interpreting Article 22 (Limitation on Benefits). The guidance represents the current views of our two countries with respect to Article 22. Future developments, including experience in administering the Convention as amended by the Protocol, and Article 22, may lead the competent authorities to develop and publish further developments and understandings.

This position meets the approval of the Government of Barbados and this Note in reply indicates that our Governments share a common understanding of the role of the Memorandum of Understanding relating to the Protocol.

Accept, Excellency, the expression of my highest consideration.

Dr. RUDI WEBSTER,

Ambassador.