Minutes of the signing of the Convention on the accession of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic to the Convention on the elimination of double taxation in connection with the adjustment of profits of associated enterprises
Date: 2005-06-30
Institutions: Council of the European Union
Subjects: Austria, European convention, Finland, Sweden, approximation of laws, double taxation, restrictive trade practice, tax on profits of self-employment

30.6.2005

EN

Official Journal of the European Union

C 160/11

MINUTES OF THE SIGNING OF THE CONVENTION

on the accession of the Czech Republic, the Republic of Estonia, the Republic of Cyprus,
the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta,
the Republic of Poland, the Republic of Slovenia and the Slovak Republic to the Convention on
the elimination of double taxation in connection with the adjustment of profits of
associated enterprises

The Plenipotentiaries of the Kingdom of Belgium, the Czech
Republic, the Kingdom of Denmark, the Republic of Estonia, the
Federal Republic of Germany, the Hellenic Republic, the Kingdom
of Spain, the French Republic, Ireland, the Italian Republic, the
Republic of Cyprus, the Republic of Latvia, the Republic of Lithua-
nia, the Grand Duchy of Luxembourg, the Republic of Hungary,
the Republic of Malta, the Kingdom of the Netherlands, the
Republic of Austria, the Republic of Poland, the Portuguese
Republic, the Republic of Slovenia, the Slovak Republic, the
Republic of Finland, the Kingdom of Sweden and the United King-
dom of Great Britain and Northern Ireland have, on 8 December
2004 in Brussels, signed the Convention on the accession of the
Czech Republic, the Republic of Estonia, the Republic of Cyprus,
the Republic of Latvia, the Republic of Lithuania, the Republic of
Hungary, the Republic of Malta, the Republic of Poland, the
Republic of Slovenia and the Slovak Republic to the Convention
on the elimination of double taxation in connection with the
adjustment of profits of associated enterprises.

On this occasion they have taken note of the following unilateral
Declarations:

(b)

fraudulently or wilfully submitting false accounts;

(c)

refusing, failing or neglecting to submit a tax return;

(d)

refusing, failing or neglecting to keep proper records
or to make documents and records available for
inspection;

(e) aiding, assisting, counselling, inciting or inducing a
person to make, deliver or furnish any return, state-
ment, claim, accounts or document, or to keep or
prepare any accounts or documents, which is or are
materially false.

The legislative provisions governing the abovemen-
tioned penalties are included in the Assessment and Col-
lection of Taxes Laws.

I. Declaration on Article 7 of the Convention on the elimina-
tion of double taxation in connection with the adjustment of
profits of associated enterprises.

2. Declaration by the Czech Republic

Declaration by Belgium, the Czech Republic, Latvia, Hungary,
Poland, Portugal, Slovakia and Slovenia on Article 7 of the
Convention on the elimination of double taxation in connec-
tion with the adjustment of profits of associated enterprises.

Belgium, the Czech Republic, Latvia, Hungary, Poland, Por-
tugal, Slovakia and Slovenia declare that they will apply
Article 7(3).

An infringement of the tax laws punishable by ‘serious
penalty’ is constituted by any infringement of the tax
laws penalised by detention, criminal or administrative
fines. For these purposes, by ‘infringement of the tax law’
is meant:

(a)

failing to pay the charged taxes, social insurance
taxes, health insurance taxes and fees paid for state
policy of employment;

II. Declarations on Article 8 of the Convention on the elimina-
tion of double taxation in connection with the adjustment of
profits of associated enterprises:

(b)

tax or similar payment evasion;

1. Declaration by the Republic of Cyprus

(c)

failing in fulfilling notification duty.

The term ‘serious penalty’ includes penalties for:

3. Declaration by the Republic of Estonia

(a)

fraudulently or wilfully making or submitting a false
statement, return, document or declaration in
respect of income or claims to any allowances or
deductions;

The term ‘serious penalty’ will be interpreted as signify-
ing criminal penalties for tax fraud pursuant to Estonian
domestic law (Penal Code).

C 160/12

EN

Official Journal of the European Union

30.6.2005

4. Declaration by the Hellenic Republic

or

The definition of serious penalty, provided by the Hel-
lenic Republic in 1990,
is hereby replaced by the
following:

(d) prepares or maintains or authorises the preparation
or maintenance of any false books of account or
other records or falsifies or authorises the falsifica-
tion of any books of account or records;

The term ‘serious penalties’ includes administrative
penalties for serious tax infringements, as well as
criminal penalties for offences committed with
respect to the tax laws in accordance with the rel-
evant provisions of the Code of Books and Records,
of the Income Tax Code, as well as all specific pro-
visions which define the administrative and crimi-
nal penalties in tax law.

5. Declaration by the Republic of Hungary

The term ‘serious penalty’ means criminal penalties
established in relation to criminal tax offences, or tax
penalties in relation to tax defaults in excess of HUF
50 million.

6. Declaration by the Republic of Latvia

or

(e) makes use of any fraud, art or contrivance whatever
or authorises the use of any such fraud, art
or contrivance.

9. Declaration by the Kingdom of the Netherlands

The definition of serious penalty, provided by the King-
dom of the Netherlands in 1990, is hereby replaced by
the following:

The term ‘a serious penalty’ means a penalty
imposed by a court due to intentionally committing
an offence as listed in Article 68(2), or Article 69(1)
or (2), of the General Tax Act.

The term ‘serious penalties’ means administrative penal-
ties for serious tax infringements, as well as criminal
penalties.

10. Declaration by the Portuguese Republic

7. Declaration by the Republic of Lithuania

The term ‘serious penalties’ includes criminal penalties
and administrative penalties such as penalties for lack of
good faith and for opposition to tax inspection.

8. Declaration by the Republic of Malta

The term ‘serious penalty’ means a penalty, whether
administrative or criminal, imposed on a person who
wilfully with intent to evade tax or to assist any other
person to evade tax:

(a) omits from a return or any other document or state-
ment made, prepared or submitted for the purposes
of or under the Income Tax Acts, any income which
should be included therein;

or

(b) makes any false statement or entry in any return or
other document or statement prepared or submit-
ted for the purposes of or under the Income Tax
Acts;

or

(c) gives any false answer, whether verbally or in writ-
ing, to any question or request for information
asked or made in accordance with the provisions of
the Income Tax Acts;

The definition of serious penalty, provided by the Por-
tuguese Republic in 1990, is hereby replaced by the
following:

The term ‘serious penalties’ includes criminal pen-
alties as well as administrative penalties applicable
to tax infringements defined by law as serious
or committed with intent to defraud.

11. Declaration by the Republic of Poland

The term ‘serious penalty’ means penalty of fine, penalty
of imprisonment or both of them imposed jointly, or
penalty of deprivation of liberty for culpable infringe-
ment of tax law provisions by a taxpayer.

12. Declaration by the Republic of Slovenia

The concept of ‘serious penalty’ means a penalty for any
infringement of tax law.

13. Declaration by the Slovak Republic

The term ‘serious penalty’ means the term ‘fine’ for
breach of tax liability understood as a charge imposed
according to the Tax Administration Act No 511/1992
of Coll. as amended, pertinent tax laws or the Act on
Accounting and the term ‘penalty’ means a penalty
imposed according to the Criminal Code for the crimi-
nal charges committed in relation to breach of the
abovementioned laws.

30.6.2005

EN

Official Journal of the European Union

C 160/13

Hecho en Bruselas, el ocho de diciembre de dos mil cuatro.

V Bruselu dne osmého prosince dva tisíce čtyři.

Udfærdiget i Bruxelles den ottende december to tusind og fire.

Geschehen zu Brüssel am achten Dezember zweitausendundvier.

Kahe tuhande neljanda aasta detsembrikuu kaheksandal päeval Brüsselis.

Έγινε στις Βρυξέλλες, στις οκτώ Δεκεμβρίου δύο χιλιάδες τέσσερα.

Done at Brussels on the eighth day of December in the year two thousand and four.

Fait à Bruxelles, le huit décembre deux mille quatre.

Fatto a Bruxelles, addì otto dicembre duemilaquattro.

Briselē, divi tūkstoši ceturtā gada astotajā decembrī.

Priimta du tūkstančiai ketvirtų metų gruodžio aštuntą dieną Briuselyje.

Kelt Brüsszelben, a kettőezer-negyedik év december hó nyolcadik napján.

Magħmul fi Brussell fit-tmien jum ta’ Diċembru tas-sena elfejn u erbgħa.

Gedaan te Brussel, de achtste december tweeduizendvier.

Sporządzono w Brukseli, dnia ósmego grudnia roku dwutysięcznego czwartego.

Feito em Bruxelas, em oito de Dezembro de dois mil e quatro.

V Bruseli ôsmeho decembra dvetisícštyri.

V Bruslju, dne osmega decembra leta dva tisoč štiri.

Tehty Brysselissä kahdeksantena päivänä joulukuuta vuonna kaksituhattaneljä.

Som skedde i Bryssel den åttonde december tjugohundrafyra.

C 160/14

EN

Official Journal of the European Union

30.6.2005

POUR SA MAJESTE LE ROI DES BELGES
VOOR ZIJNE MAJESTEIT DE KONING DER BELGEN
FÜR SEINE MAJESTÄT DER KÖNIG DER BELGIER

ZA PREZIDENTA ČESKÉ REPUBLIKY

FOR HENDES MAJESTÆT DANMARKS DRONNING

FÜR DEN PRÄSIDENTEN DER BUNDESREPUBLIK DEUTSCHLAND

EESTI VABARIIGI PRESIDENDI NIMEL

ΓΙΑ ΤΟΝ ΠΡΟΕΔPO THΣ EΛΛHNIKHΣ ΔHMOKPATIAΣ

30.6.2005

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Official Journal of the European Union

C 160/15

POR SU MAJESTAD EL REY DE ESPAÑA

POUR LE PRÉSIDENT DE LA RÉPUBLIQUE FRANÇAISE

THAR CEANN UACHTARÁN NA hÉIREANN
FOR THE PRESIDENT OF IRELAND

PER IL PRESIDENTE DELLA REPUBBLICA ITALIANA

ΓΙΑ ΤΟΝ ΠΡΟΕΔPO THΣ KYΠPIAKHΣ ΔHMOKPATIAΣ

LATVIJAS REPUBLIKAS MINISTRU KABINETA VĀRDĀ

C 160/16

EN

Official Journal of the European Union

30.6.2005

LIETUVOS RESPUBLIKOS PREZIDENTO VARDU

POUR SON ALTESSE ROYALE LE GRAND-DUC DE LUXEMBOURG

A MAGYAR KÖZTÁRSASÁG ELNÖKE RÉSZÉRŐL

GĦALL-PRESIDENT TA’ MALTA

VOOR HARE MAJESTEIT DE KONINGIN DER NEDERLANDEN

FÜR DEN BUNDESPRÄSIDENTEN DER REPUBLIK ÖSTERREICH

ZA PREZYDENTA RZECZYPOSLITEJ POLSKIEJ

30.6.2005

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Official Journal of the European Union

C 160/17

PELO PRESIDENTE DA REPÚBLICA PORTUGUESA

ZA PREDSEDNIKA REPUBLIKE SLOVENIJE

ZA PREZIDENTA SLOVENSKEJ REPUBLIKY

SUOMEN TASAVALLAN PRESIDENTIN PUOLESTA
FÖR REPUBLIKEN FINLANDS PRESIDENT

FÖR KONUNGARIKET SVERIGES REGERING

FOR HER MAJESTY THE QUEEN OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND