FROM THE OFFICE OF PUBLIC AFFAIRS

The Treasury Department announced today that delegations from the United States and Ireland have reached agreement on the text of a new income tax Convention.

The text of the new Convention was initialed in Puebla, Mexico on April 25, 1997 by Joseph Guttentag, Treasury Department International Tax Counsel, and Frank Mullen, Assistant Secretary, Revenue Commissioners. The initialing confirmed the mutual commitment of the two countries to move forward as quickly as possible to signature and ratification of the new Convention. When ratified, the new Convention will replace the existing U.S.-Ireland income tax Convention, which was signed in 1949.

The new treaty reflects important changes in the tax laws and treaty policies of both countries since 1949. After signature by the two governments, the treaty is subject to ratification in each country. The text of the treaty will be made public after signature.