memorandum of understanding between the government of the ...

MEMORANDUM OF UNDERSTANDING BETWEENTHE GOVERNMENT OF THE PRINCIPALITY OF LIECHTENSTEINAND THE IRISH REVENUE COMMISSIONERSCONCERNING THE AGREEMENT BETWEEN THE GOVERNMENT OF THE PRINCIPALITYOF LIECHTENSTEIN AND THE GOVERNMENT OF IRELAND FOR THE EXCHANGE OFINFORMATION RELATING TO TAX MATTERSThe Government of the Principality of Liechtenstein and the Irish RevenueCommissioners (“the Competent Authorities”), desiring to facilitate the exchange ofinformation relating to tax matters under the Agreement, have reached thefollowing understanding in relation to the costs of obtaining and providinginformation in response to a request and the making of formal communications aswell as on further cooperation:1. This Memorandum of Understanding is not intended to create legal relationseither in international law or the domestic law of the Principality of Liechtenstein orIreland.Costs2. Pursuant to Article 9 of the Agreement between the Government of thePrincipality of Liechtenstein and the Government of Ireland (“the ContractingParties”) for the Exchange of Information Relating to Tax Matters, it is mutuallyagreed that ordinary administrative and overhead expenses incurred by therequested Party in reviewing and responding to information requests submitted bythe applicant Party (referred to in Article 9 as “indirect costs”) will be borne by therequested Party. Such indirect costs would normally cover internal administrationcosts and any minor external costs.3. All other costs that are not indirect costs shall be regarded as “direct costs”and will be borne by the applicant Party. Examples of direct costs include, but arenot limited to, the following:4. In Article 9 the term “direct costs” shall be interpreted as follows:‐a) examples of the direct costs include, but are not limited to, thefollowing:aa) reasonable costs of reproducing and transporting documentsor records to the competent authority of the applicant Party;

) reasonable fees imposed by a financial institution or otherrecord keeper for copying records and research related to a specificrequest for information;cc) reasonable costs for stenographic reports and interviews,depositions or testimony;dd) reasonable fees and expenses, determined in accordance withamounts allowed under applicable law, on the person who voluntarilyappears in the territory of one of the Contracting Parties for interview,deposition or testimony relating to a particular information request;ee) reasonable legal fees for non‐government counsel appointedor retained, with the approval of the competent authority of theapplicant Party, for litigation in the courts of the requested Partyrelated to a specific request for information.b) Direct costs do not include ordinary administrative and overheadexpenses incurred by the requested Party in reviewing and responding toinformation requests submitted by the applicant Party.c) If the direct costs pertaining to a specific request are expected toexceed EUR 500 or the Swiss Franc equivalent, the competent authority ofthe requested Party shall contact the competent authority of the applicantParty to determine whether the applicant Party wants to pursue the requestand bear the costs.5. This Memorandum of Understanding will come into effect on the entry intoforce of the Agreement between the Government of the Principality of Liechtensteinand the Government of Ireland for the Exchange of Information Relating to TaxMatters.Formal Communications6. Formal communications, including requests for information, made inconnection with or pursuant to the provisions of the Agreement will be in writingdirectly to the competent authority of the other Contracting Party at the addressesgiven below, or such other address as may be notified by one Contracting Party tothe other from time to time.Competent Authority for the Principality of Liechtenstein:Government of the Principality of Liechtenstein,9490 Vaduz.- 2 -

Competent Authority for Ireland:International Branch,Corporate Business and International Division,Revenue Commissioners,Dublin Castle,Dublin 2.Further Cooperation7. Both Contracting Parties are committed to examine other areas of mutual cooperationand benefits. Following the entry into force of the Agreement theContracting Parties will jointly explore the possibility of entering into a conventionfor the avoidance of double taxation on income and capital.8. The Contracting Parties may amend this Memorandum of Understanding atany time in writing. The amended Memorandum of Understanding will come intoeffect on such date as is agreed in writing by the Contracting Parties.9. This Memorandum of Understanding will remain in effect until terminated byeither Contracting Party. Notification of termination can be made at any time andmust be in writing.Done at __________________, in duplicate, this _____day of_____________, 2009.For the Government of the Principality ofLiechtensteinFor the Revenue Commissioners…………………………………………………………………………- 3 -