Article 25-29

1.

Where a person considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with the provisions of this Convention, he may, irrespective of the remedies provided by the domestic law of those States, present his case to the competent authority of either Contracting State. The case must be presented within three years from the first notification of the action resulting in taxation not in accordance with the provisions of the Convention.

2.

The competent authority shall endeavor, if the objection appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation which is not in accordance with the Convention. Any agreement reached shall be implemented notwithstanding any time limits or other procedural limitations in the domestic law of the Contracting States.

3.

The competent authorities of the Contracting States shall endeavor to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Convention. In particular the competent authorities of the Contracting States may agree:

a)

to the same attribution of income, deductions, credits, or allowances of an enterprise of a Contracting State to its permanent establishment situated in the other Contracting State;

b)

to the same allocation of income, deductions, credits, or allowances between persons;

c)

to the same characterization of particular items of income;

d)

to the same characterization of persons;

e)

to the same application of source rules with respect to particular items of income;f) to a common meaning of a term;

g)

to increases in any specific dollar amounts referred to in the Convention to reflect economic or monetary developments;

h)

to advance pricing arrangements; and

i)

to the application of the provisions of domestic law regarding penalties, fines, and interest in a manner consistent with the purposes of the Convention.

They may also consult together for the elimination of double taxation in cases not provided for in the Convention.

4.

The competent authorities of the Contracting States may communicate with each other directly for the purpose of reaching an agreement in the sense of the preceding paragraphs.

1.

The competent authorities of the Contracting States shall exchange such information as is relevant for carrying out the provisions of this Convention or of the domestic laws of the Contracting States concerning taxes covered by the Convention insofar as the taxation thereunder is not contrary to the Convention, including the assessment of, collection of, the enforcement or prosecution in respect of or the determination of appeals in relation to the taxes covered by the Convention. The exchange of information is not restricted by Article 1 (General Scope). Any information received by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) involved in the assessment, collection or administration of, the enforcement or prosecution in respect of, or the determination of appeals in relation to, the taxes covered by the Convention or the oversight of the above. Such persons or authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions.

2.

In no case shall the provisions of paragraph 1 be construed so as to impose on a Contracting State the obligation:

a)

to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State;

b)

to supply information which is not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State;

c)

to 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 (ordre public).

3.

Notwithstanding paragraph 2, laws or practices of the requested State pertaining to the disclosure of information by financial institutions, nominees or persons acting in an agency or fiduciary capacity, or respecting ownership of debt instruments or interests in a person shall not affect the authority of the requested State. The competent authorities shall have the authority to obtain and provide information notwithstanding such disclosure laws and practices. If information is requested by a Contracting State in accordance with this Article, the other Contracting State shall obtain the information to which the request relates in the same manner and to the same extent as if the tax of the first-mentioned State were the tax of that other State and were being imposed by that other State. If specifically requested by the competent authority of a Contracting State, the competent authority of the other Contracting State shall provide information under this Article in the form of depositions of witnesses and authenticated copies of unedited original documents (including books, papers, statements, records, accounts, and writings), to the same extent such depositions and documents can be obtained under the laws and administrative practices of that other State with respect to its own taxes.

4.

Each of the Contracting States shall endeavor to collect on behalf of the other Contracting State such amounts as may be necessary to ensure that relief granted by the Convention from taxation imposed by that other State does not inure to the benefit of persons not entitled thereto.

5.

Paragraph 4 shall not impose upon either of the Contracting States the obligation to carry out administrative measures which are of a different nature from those used in the collection of its own taxes, or which would be contrary to its sovereignty, security, or public policy.

6.

For the purposes of this Article, the Convention shall apply, notwithstanding the provisions of Article 2 (Taxes Covered), to taxes of every kind imposed by a Contracting State.

7.

The competent authority of the requested State shall allow representatives of the applicant State to enter the requested State to interview individuals and examine books and records with the consent of the persons contacted and the competent authority of the requested State.

Nothing in this Convention shall affect the fiscal privileges of members of diplomatic missions or consular posts under the general rules of international law or under the provisions of special agreements.

1.

The Governments of the Contracting States shall notify each other through diplomatic channels when the constitutional requirements for the entry into force of the Convention have been complied with.

2.

The Convention shall enter into force on the date of the later of the notifications referred to in paragraph 1, and its provisions shall have effect in both Contracting States:

a)

in respect of taxes withheld at source, for amounts paid or credited on or after the first day of January of the calendar year next following the year in which the Convention enters into force;

b)

in respect of other taxes on income, for taxable years beginning on or after the first day of January of the calendar year next following the year in which the Convention enters into force.

3.

The appropriate authorities of the Contracting States shall consult within a five-year period from the date on which this Convention enters into force with respect to the application of the Convention, including the negotiations of an amendment to the Convention by mean of a protocol (if appropriate), to income derived from new technologies (such as payments received for transmission by satellite, cable, optic fibre or similar technology).

This Convention shall remain in force until terminated by a Contracting State. Either Contracting State may terminate the Convention by giving written notice of termination, through diplomatic channels, at least 6 months before the end of any calendar year. In such event, the Convention shall cease to have effect in both Contracting States:

a)

in respect of taxes withheld at source, for amounts paid or credited on or after the first day of January of the calendar year next following the year in which the notice has been given;

b)

in respect of other taxes on income, for taxable years beginning on or after the first day of January of the calendar year next following the year in which the notice has been given.

IN WITNESS WHEREOF, the undersigned, being duly authorized thereto, have signed this Convention.

DONE at Washington in duplicate, in the English and Estonian languages, both texts being equally authentic, this 15th day of January, 1998.

FOR THE UNITED STATES OF AMERICA:
(s) Robert E. Rubin

FOR THE REPUBLIC OF ESTONIA:
(s) Lennart

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