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B-115398.53 1 (1979-01-25)

handle is hein.gao/gaobabjly0001 and id is 1 raw text is: 6 0 COMPTROLLER GENERAL OF THE UNI4TED STATES * .~WASHINGTON. O.C. Z=4S B-115398.53 JAN 251979 The Honorable Charles A. Vanik House of Representatives -, _ Dear Mr. Vanik: i .. In your recent letter, you referred to the Senate's consideration of the .tification of the United States-United Kingdom Tax Treaty] and stated that you are opposed to a number of provisions in the treaty. You are particularly opposed to the consideration by the Senate alone of a mea- sure affecting American tax practices. You state that The Senate has the power to ratify treaties--but the Constitution also entrusts the House with the power to originate legislation affecting the revenues, and ask for our opinion on the constitutionality and legality of the Senate's approval of the treaty which would reduce the revenues without the concurrence of the House of Representatives --the supposed originator of revenue measures. You refer to a number of precedents which you believe show that a tax or commercial tr aty which clearly affects the revenues cannot and should not be rat-Iied by one chamber alone. Additionally, you state that the Congressional Budget Act reaffirms the requirement that both Chambers approve resolutions affecting the level of spending and revenue. You request our analysis of how the Senate's advice and consent to ratification would coordinate with the Budget Act. The treaty in question, The Convention Between the Government of the United States of America and the Government of the United Kingdom of Great Britain and Northern Ireland For the Avoidance of Double Taxation and the 77.P evention of Fiscal Evasion With Respect to Taxes On Income, was <_r-cd at London on December 31, 1975o An exchange of notes was ,.;0rn' at London on April 13, 1976, modifying certain provisions of the cuc..r:tion. On June 24, 1976, the convention was transmitted by the President for the Senate's advice and consent to ratification. On June 27, 1978, the Senate voted a resolution advising and consenting to ratification, with the exception of Article 9(4). Under Section 28 of the conventio-; it was to enter into force immediately after the expiration of 30 (y. following the date on which the instruments of ratification are exchan -,- iHiowever, because of the Senate's Article 9(4) exception, the treaty . odified must be reconsidered by the United Kingdom. The treaty in question which replaces a tax treaty signed on April 16, 1945, and subsequently a--ended, is summarized in S. Exec. Rep. No. 95-18, 95th Cong., 2d S ss. 2 (1978) as follows: Z1