In a comment, Aussie Jones asks about Article 21 of the OECD’s Multilateral Convention On Mutual Administrative Assistance In Tax Matters, which states, in part:
Article 21 — Protection of persons and limits to the obligation to provide assistance
2. The provisions of this Convention shall not be construed so as to impose on the requested State the obligation:
a. to carry out measures at variance with its own laws or administrative practice or the laws or administrative practice of the applicant State;
b. to carry out measures which would be contrary to public policy (ordre public);
e. to provide administrative assistance if and insofar as it considers the taxation in the applicant State to be contrary to generally accepted taxation principles or to the provisions of a convention for the avoidance of double taxation, or of any other convention which the requested State has concluded with the applicant State;
f. to provide administrative assistance for the purpose of administering or enforcing a provision of the tax law of the applicant State, or any requirement connected therewith, which discriminates against a national of the requested State as compared with a national of the applicant State in the same circumstances.
The U.S. government clearly is not a fan of certain provisions of Article 21, but how helpful can these clauses really be to “U.S. Persons” living in other countries?