Establish the necessary administrative controls to prevent fraud and evasion. The information exchanged pursuant to the provisions of the preceding paragraph shall be considered confidential and can not be transmitted to any person other than the authorities responsible for the administration of taxes that are the subject of this agreement.
For purposes of this article, the competent authorities of the Contracting States may communicate directly with each other.
- Article 1 .- To approve the agreement to avoid double taxation between Member Countries contained in Annex I to this Decision.
- Article 2 .- To approve the Standard Agreement for the avoidance of double taxation between Member Countries and other States outside the Subregion, which appears in Annex II to this Decision.
- Article 3 .- The Member Countries shall, before June 30, 1972, the necessary steps to implement the Convention for the avoidance of double taxation between Member Countries in order to come into force in accordance with the provisions of the Article 21 of the Convention.
- Article 4 .- Should there be any difficulties or doubts arising in the implementation of the Convention to avoid double taxation between Member Countries that can not be settled through consultation referred to in Article 20 of the Convention, the record shall be submitted to respective Council Fiscal Policy for consideration.
Important is to mention the provisions of Circular No. 64 of December 7, 2005 of the Internal Revenue Service which states:
On 27 October 1995, the Legal Department of the Ministry of Foreign Affairs issued the regular office No. 021 459, which refers to the effect in Chile of the Decision No. 40 of the Cartagena Agreement Commission and expressly pronounce on the validity of the above Conventions.
With respect to such subject matter can be reported that the Service refers to the rationale and conclusions put forward by the Ministry of Foreign Affairs in the individual and trade, in the sense of considering both the Convention for the Avoidance of Double Taxation between Member Countries of the Agreement Cartagena, as the Standard Agreement for the Avoidance of Double Taxation between Member Countries and other States outside the Subregion, which consist in Annexes I and II to Decision No. 40, do not have any national or international force for Chile, because they are not met, at the appropriate legal procedures that both the domestic legislation of Chile as the standards included in the Decision No. 40 and Decision No. 102 of the Cartagena Agreement Commission required for approval and entry into validity of those agreements.
In order to bring more clarity to what I said, is transcribed THE TEXT OF THE DECISION 40
Approval of Agreement to avoid double taxation between Member Countries and the Standard Agreement for the conclusion of agreements on double taxation between Member Countries and other States outside the Subregion.
THE COMMISSION OF THE CARTAGENA AGREEMENT
HAVING SEEN: Article 89 of the Cartagena Agreement and Article 47 of Decision No. 24 of the Commission,
WHEREAS, the proposal of the Board, the Commission must adopt a convention aimed at avoiding double taxation between Member Countries and that, likewise, must approve a standard agreement for the conclusion of agreements on double taxation between Member Countries and other States outside the Subregion.
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