ADDITIONAL PROTOCOL THAT MODIFIES THE CONVENTION BETWEEN THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE GOVERNMENT OF THE UNITED MEXICAN STATES FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME 　　　　　　　　　　　　　　MESSAGE 　　　　　　　　　　　　　　FROM 　　　　　　　THE PRESIDENT OF THE UNITED STATES 　　　　　　　　　　　　TRANSMITTING 　　ADDITIONAL PROTOCOL THAT MODIFIES THE CONVENTION BETWEEN THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE GOVERNMENT OF THE UNITED MEXICAN STATES FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME SIGNED AT WASHINGTON ON SEPTEMBER 18, 1992. THE ADDITIONAL PROTOCOL WAS SIGNED AT MEXICO CITY ON SEPTEMBER 8, 1994 LETTER OF SUBMITTAL (PROTOCOL 2) DEPARTMENT OF STATE, Washington, September 9, 1994. THE PRESIDENT, The White House. 　　THE PRESIDENT: I have the honor to submit to you, with a view to its transmission to the Senate for advice and consent to ratification, an Additional Protocol that Modifies the Convention Between the Government of the United States of America and the Government of the United Mexican States for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income, signed at Washington, September 18, 1992. The Additional Protocol was signed at Mexico City, September 8, 1994. 　　Article 27 of the Convention provides for the exchange of information under the Agreement for the Exchange of Information with Respect to Taxes between the United States and Mexico, signed on November 9, 1989. The Additional Protocol will amend Article 27 to broaden the scope of tax information exchange with Mexico. The Protocol provides that the administrative authorities of each Party are authorized to exchange information in accordance with and with respect to any tax covered by any tax information exchange agreement. Information exchange under the treaty will also apply to taxes imposed at all levels of government. 　　The treaty Protocol will be of significant benefit to the United States by enabling state tax administrations to streamline procedures and thereby encourage cross border commerce. At the same time, more comprehensive tax compliance programs can be developed targeting the underground economies on both sides of the border. 　　The Protocol will enter into force when both governments have completed their constitutional and statutory procedures and have notified each other to that effect. 　　The current Agreement Between the United States of America and the United Mexican States for the Exchange of Information with Respect to Taxes, which now applies only to federal taxes, is also being amended by a protocol to provide for the exchange of information to administer and enforce tax laws at all levels of government. This protocol will enter into force only after the Additional Protocol to the Convention has been ratified. 　　A technical memorandum explaining in detail the provisions of the Protocol is being prepared by the Department of Treasury and will be submitted separately to the Senate Committee on Foreign Relations. That memorandum will attach a copy of the protocol amending the Agreement for the Exchange of Information with Respect to Taxes. 　　The Department of the Treasury and the Department of State cooperated in the negotiation of the Additional Protocol. It has the full approval of both Departments. Respectfully submitted, WARREN CHRISTOPHER. LETTER OF TRANSMITTAL (PROTOCOL 2) THE WHITE HOUSE, September 19, 1994. To the Senate of the United States: 　　I transmit herewith for Senate advice and consent to ratification the Additional Protocol that Modifies the Convention Between the Government of the United States of America and the Government of the United Mexican States for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income, signed at Washington on September 18, 1992. The Additional Protocol was signed at Mexico City on September 8, 1994. Also transmitted for the information of the Senate is the report of the Department of State with respect to the Additional Protocol. 　　The Additional Protocol will amend the tax treaty provisions to broaden the scope of tax information exchange with Mexico. The Protocol will authorize the exchange of tax information under any tax information exchange agreement between the two countries and will provide for information exchange under the treaty for taxes at all levels of government. 　　The current Agreement Between the United States of America and the United Mexican States for the Exchange of Information with Respect to Taxes, which now applies only to Federal taxes, is also being amended by a protocol to provide for the exchange of information to administer and enforce tax laws at all levels of government. This protocol, which was also signed at Mexico City on September 8, 1994, will enter into force only after the Protocol to the Convention has been ratified. 　　I recommend that the Senate give early and favorable consideration to the Additional Protocol and give its advice and consent to ratification. WILLIAM J. CLINTON. 　　ADDITIONAL PROTOCOL THAT MODIFIES THE CONVENTION BETWEEN THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE GOVERNMENT OF THE UNITED MEXICAN STATES FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME, SIGNED AT WASHINGTON, D.C., ON SEPTEMBER 18, 1992 　　The Government of the United States of America and the Government of the United Mexican States, desiring to amend the Convention between the United States of America and the United Mexican States for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income, signed on September 18, 1992, have agreed upon the following provisions which shall be an integral part of the Convention: ARTICLE I 　　Article 27 (Exchange of Information) of the Convention shall be amended to read as follows: 　　"1. The Competent Authorities are authorized to exchange information with respect to any tax covered by, and in accordance with, the provisions of any agreement between the Contracting States for the exchange of information with respect to taxes. 　　2. In the event that no such agreement is in effect, the competent authorities of the Contracting States shall exchange such information as is necessary for carrying out the provisions of the Convention or to administer and enforce the domestic laws of the Contracting States concerning taxes covered by the Convention insofar as the taxation thereunder is not contrary to the Convention. The exchange of information is not restricted by Article 1 (General Scope). Any information received by a Contracting States 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 individuals or authorities (including judicial and administrative bodies) involved in the determination, assessment, collection, and administration of, the recovery and collection of claims derived from, the enforcement and prosecution in respect of, or the determination of appeals in relation to, the taxes which are the subject of the Convention. Such individuals or authorities shall use the information only for such purposes. These individuals or authorities may disclose the information in public court proceedings or in judicial decisions. 　　3. For the purposes of this Article, the Convention shall apply, notwithstanding the provisions of Article 2 (Taxes Covered), to all taxes imposed by a Contracting State, including taxes imposed by a state, municipality, or other political subdivision or local authority thereof." ARTICLE II 　　The Contracting States shall notify each other when their respective constitutional and statutory requirements for the entry into force of this Protocol have been satisfied. This Protocol shall enter into force on the date of receipt of the later of such notifications. ARTICLE III 　　This Protocol shall remain in force as long as the Convention and Protocol of September 18, 1992, remain in force. 　　IN WITNESS WHEREOF, the undersigned, being duly authorized thereto by their respective Governments, have signed this Protocol 　　DONE at Mexico City, on the eighth day of September 1994, in duplicate, in the English and Spanish languages, both texts being equally authentic. FOR THE UNITED STATES FOR THE GOVERNMENT OF THE OF AMERICA: UNITED MEXICAN STATES: (s) Lloyd Bensen (s) Pedro Aspe Armella