Public Papers

Message to the Senate Transmitting the Finland-United States Convention on Taxation and Fiscal Evasion


To the Senate of the United States:

I transmit herewith for Senate advice and consent to ratification the Convention between the Government of the United States of America and the Government of the Republic of Finland for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and on Capital, signed at Helsinki on September 21, 1989. I also transmit the report of the Department of State on the convention.

The convention would replace the existing income tax treaty with Finland that was signed on March 6, 1970. It is based on the model income tax conventions of the Organization for Economic Cooperation and Development and the Department of the Treasury and takes into account the changes in United States income tax law resulting from the Tax Reform Act of 1986.

The convention contains provisions designed to prevent third-country residents from taking unwarranted advantage of the convention by routing income from one Contracting State through an entity created in the other. The convention also provides for the exchange of information by the competent authorities of the Contracting States.

I recommend the Senate give early and favorable consideration to the convention and give its advice and consent to ratification.

George Bush

The White House,

February 5, 1990.