ARTICLE XI
Article 27 (Exchange of Information) of the Convention shall be deleted and
replaced by the following:
“Article 27
Exchange of Information
1. The competent authorities of the Contracting States shall exchange
such information as may be relevant for carrying out the provisions of this
Convention or to the administration or enforcement of the domestic laws
concerning taxes of every kind and description imposed on behalf of the
Contracting States, insofar as taxation thereunder is not contrary to the
Convention. The exchange of information is not restricted by Articles 1
(Personal Scope) and 2 (Taxes Covered).
2. Any information received under this Article 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)
concerned with the assessment or collection or administration of, the
enforcement or prosecution in respect of, the determination of appeals in
relation to the taxes referred to in paragraph 1, 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.
3. In no case shall the provisions of paragraphs 1 and 2 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”).
4. a) If information is requested by a Contracting State in accordance with
this Article, the other Contracting State shall use its information gathering
measures to obtain the requested information, even though that other State
may not need such information for its own tax purposes. The obligation
contained in the preceding sentence is subject to the limitations of
paragraph 3 but in no case shall such limitations be construed to permit a
Contracting State to decline to supply information solely because it has no
domestic interest in such information.
b) If specifically requested by the competent authority of a Contracting
State, the competent authority of the other Contracting State shall, if
possible, 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 the other Contracting State with
respect to its own taxes.
c) A Contracting State shall allow representatives of the other Contracting
State to enter the first-mentioned Contracting State to interview taxpayers
and look at and copy their books and records, but only after obtaining the
consent of those taxpayers and the competent authority of the first-
mentioned State (who may be present or represented, if desired), and only
if the two Contracting States agree, in an exchange of diplomatic notes, to
allow such inquiries on a reciprocal basis. Such inquiries shall not be
considered audits for purposes of French domestic law.
5. In no case shall the provisions of paragraph 3 be construed to permit a
Contracting State to decline to supply information solely because the
information is held by a bank, other financial institution, nominee or
person acting in an agency or a fiduciary capacity or because it relates to
ownership interests in a person.”