Exchange of Notes

EXCHANGE OF NOTES

I

San Jose, February 8, 1991

His Excellency
Robert O. Homme,
Charge d’affaires ad interim,
United States of America,
San Jose, Costa Rica

Sir:

I have the honor to refer to the Agreement for the Exchange of information with Respect to Taxes between the Government of the United States of America and the Government of the Republic of Costa Rica (“the Agreement”) signed at San Jose, Costa Rica, on March 15, 1989. I refer in particular to Article 11 of the Agreement which provides that it will enter into force upon an exchange of notes by the representatives of the contracting states duly authorized for that purpose, confirming their mutual understanding that both parties have met all the constitutional and legal requirements necessary for it to be observed.

If it is agreeable to your Government, this note and a note of reply on behalf of your Government will serve to confirm that the parties have met all the constitutional and legal requirements necessary for the Agreement to enter into force beginning on the date of the note from your Government.

By this note, the Government of the Republic of Costa Rica confirms its understanding that, subject to the limitations in Article 5, Paragraph 2, of the Agreement, the Government of the United States of America has the constitutional and legal authority to do the following:

(A) Exchange information to fulfill the purpose of the Agreement, regardless of whether the person to whom the information refers, or who may be in possession of the information, is a resident or national of the United States or Costa Rica, as required by Article 1, Paragraph 2, of the Agreement.

(B) Upon receipt of a request from the competent authority of the Republic of Costa Rica, examine any books, papers, records, or other personal property that may be relevant or material to the inquiry, as required by Article 5, Paragraph 4(b), of the Agreement.

(C) Upon receipt of a request from the competent authority of the Republic of Costa Rica, receive testimony and investigate any person who has information or who has knowledge, custody, or control of information that may be relevant or material to the inquiry, as required by Article 4, Paragraph 4(b), of the Agreement.

(D) Upon receipt of a request from the competent authority of the Republic of Costa Rica, compel any person who has knowledge, custody, or control of information that may be relevant or material to the inquiry, or who possesses such information, to appear at a stated time and place to testify under oath and to produce books, papers, records, or other personal property, as required by Article 4, Paragraph 4(c), and Article 5, Paragraph 1(a) and (b), of the Agreement.

(E) Upon receipt of a request from the competent authority of the Republic of Costa Rica, permit the presence of those individuals indicated by the competent authority of the Republic of Costa Rica as being involved in or affected by execution of the request, including the person accused or under investigation, and his attorney, and up to two delegates or especially assigned commissioners or representatives of the administration or enforcement of the tax laws of the Republic of Costa Rica, as required by Article 5, Paragraph 1(c), of the Agreement.

(F) Upon receipt of a request from the competent authority of the Republic of Costa Rica, permit said competent authority to submit questions in writing to which the individual producing books, papers, records, and other personal property is to respond regarding said books, papers, records, or other personal property, as required by Article 5, Paragraph 1(d), of the Agreement.

(G) Upon receipt of a request from the competent authority of the Republic of Costa Rica, permit authorized individuals to be present at the proceedings and to question, through the authority conducting the proceedings, the individual giving testimony or producing books, papers, records, or other personal property, as required in Article 5, Paragraph 1(e), of the Agreement.

(H) Upon receipt of a request from the competent authority of the Republic of Costa Rica, obtain original books, papers, records, and other personal property in the condition in which they are found, or order that true and faithful copies of such books, papers, records, or other personal property form part of the appropriate case records, as required by Article 5, Paragraph 1(f), of the Agreement.

(I) Upon receipt of a request from the competent authority of the Republic of Costa Rica, question the individual producing books, papers, records or other personal property regarding the purpose for which and the manner in which they are or were maintained, as required by Article 5, Paragraph 1(g), of the Agreement.

(J) Upon receipt of a request from the competent authority of the Republic of Costa Rica, certify the authenticity of books, records, papers, and any other tangible property produced, as required by Article 5, Paragraph 1(i), of the Agreement.

(K) Upon receipt of a request from the competent authority of the Republic of Costa Rica, take any action not in violation of the laws or at variance with the administrative practices of the United States, as required by Article 5, Paragraph 1(h) of the Agreement.

(L) Certify that the procedures requested by the competent authority of the republic of Costa Rica were followed, or that they could not be followed, with an explanation of the impediment, as required by Article 5, Paragraph 1(j), of the Agreement. And

(M) Upon receipt of a request from the competent authority of the Republic of Costa Rica, obtain and furnish information, notwithstanding any United States disclosure laws and practices pertaining to the disclosure of banking information or information from agents or persons acting as agents or trustees, and laws relating to ownership of rights in a juristic person, as required by Article 4, Paragraph 5, and in accordance with Article 4, Paragraph 6 of the Agreement.

By this note, the Government of the Republic of Costa Rica confirms that it has the authority to perform the actions listed above.

By this note, the Government of the Republic of Costa Rica also confirms its understanding that the tax laws of the United States do not discriminate against agreements implemented in the republic of Costa Rica.

Accept, Excellency, the assurances of my highest consideration.

Bernd H. Niehaus Quesada

II

Embassy of The United States of America

San Jose, February 12, 1991

His Excellency
Bernd Niehaus Quesada
Minister of Foreign Relations
Republic of Costa Rica
San Jose

Excellency:

I have the honor to refer to the Agreement for the Exchange of Information with Respect to Taxes Between the Government of Costa Rica and the United States of America (the “Agreement”), signed at San Jose, Costa Rica, on March 15, 1989 and to your Government’s note No. 052-91 dated February 8, 1991. I refer in particular to Article 11 of the Agreement which provides that the Agreement shall enter into force upon an exchange of notes by the duly authorized representatives of the contracting states confirming their mutual understanding that both sides have met all constitutional and statutory requirements necessary to effectuate the Agreement.

Your Government’s note of February 8 and this note of reply on behalf of my Government will serve to confirm that both sides have met all constitutional and statutory requirements necessary to effectuate the Agreement as of the date of the note of your Government.

By this note, the Government of the United States confirms its understanding that, subject to the limitations contained in Article 5, Paragraph 2 of the Agreement, the Government of Costa Rica has the constitutional and statutory authority to do the following:

(A) Exchange information to fulfill the purpose of the Agreement without regard to whether the person to whom the information relates is, or whether the information is held by, a resident or national of Costa Rica or the United States, as required by Article 1, Paragraph 2 of the Agreement.

(B) Upon request by the competent authority of the United States, examine any books, papers, records, or other personal property that may be relevant or material to such inquiry, as required by Article 4, Paragraph 4(a) of the Agreement.

(C) Upon request by the competent authority of the United States, receive testimony and investigate any person that has information or has knowledge, custody or control of information that may be relevant or material to the inquiry, as required by Article 4, Paragraph 4(b) of the Agreement.

(D) Upon request by the competent authority of the United States, compel any person having knowledge, custody or control of information that may be relevant or material to the inquiry, or that possesses such information, to appear at a stated time and place to testify under oath and to produce books, papers, and records or other personal property, as required by Article 4, Paragraph 4(c) and Article 5, Paragraph 1(a) and (b) of the Agreement.

(E) Upon request by the competent authority of the United States, permit the presence of those individuals designated by the competent authority of the United States as being involved in or affected by the execution of the request, including the accused or investigated person and his attorney and up to two commissioners or special masters or representatives charged with the administration or enforcement of the tax laws of the United States, as required by Article 5, Paragraph 1(c) of the Agreement.

(F) Upon request by the competent authority of the United States, permit the competent authority of the United States to submit questions in writing to which the individual producing books, papers, records, and other personal property is to respond regarding the item produced, subject to prior evaluation by the competent authority of Costa Rica, as required by Article 5, Paragraph 1(d) of the Agreement.

(G) Upon request by the competent authority of the United States, permit the individual authorized to be present for the taking of testimony to question, through the executing authority, the individual giving testimony or producing books, papers, records, and other personal property, as required by Article 5, Paragraph 1(e) of the Agreement.

(H) Upon request by the competent authority of the United States, secure original and unedited books, papers, records, and other personal property, or require that true and correct copies of such books, papers, records, or personal property be made part of the response, as required by Article 5, paragraph 1(f) of the Agreement.

(I) Upon request by the competent authority of the United States, examine the individual producing books, papers, records, and other personal property regarding the purpose for which and the manner in which the items are or were maintained, as required by Article 5, Paragraph 1(g) of the Agreement.

(J) Upon request by the competent authority of the United States, determine the authenticity of books, records, papers, and other personal property produced, as required by Article 5, Paragraph 1(i) of the Agreement;

(K) Upon request by the competent authority of the United States, perform any other act not in violation of the laws or at variance with the administrative practice of costa Rica, as required by Article 5, Paragraph 1(h) of the Agreement;

(L) Certify either that procedures requested by the competent authority of the United States were followed or that the procedures requested could not be followed, with an explanation of the deviation and the reason therefore, as required by Article 5, Paragraph 1(j) of the Agreement. And

(M) Upon request by the competent authority of the United States, obtain and provide information notwithstanding any Costa Rican disclosure laws or practices pertaining to the disclosure of information by banks, by nominees or persons acting in an agency or fiduciary capacity, and respecting ownership or interested [sic] in a person other than an individual, as required by Article 4, Paragraph 5 and in conformity with Paragraph 6 of Article 4 of the Agreement.

By this note, the Government of the United States confirms that it has the authority to perform the actions enumerated above.

By this note, the Government of the United States confirms its understanding that the laws of Costa Rica do not permit the use of bearer shares.

By this note, the Government of the United States also confirms its understanding that the tax laws of Costa Rica do not discriminate against conventions held in the United States.

Accept, Excellency, the renewed assurances of my highest consideration.

Robert O. Homme
Charge d’Affairs, a.i.