qualified confidential information

(6) Treatment of conventions in certain Caribbean countries (A) In general For purposes of this subsection, the term “North American area” includes, with respect to any convention, seminar, or similar meeting, any beneficiary country if (as of the time such meeting begins)— (i) there is in effect a bilateral or multilateral agreement described in subparagraph (C) between such country and the United States providing for the exchange of information between the United States and such country, and (ii) there is not in effect a finding by the Secretary that the tax laws of such country discriminate against conventions held in the United States. (B) Beneficiary country For purposes of this paragraph, the term “beneficiary country” has the meaning given to such term by section 212(a)(1)(A) of the Caribbean Basin Economic Recovery Act; except that such term shall include Bermuda. (C) Authority to conclude exchange of information agreements (i) In general The Secretary is authorized to negotiate and conclude an agreement for the exchange of information with any beneficiary country. Except as provided in clause (ii), an exchange of information agreement shall provide for the exchange of such information (not limited to information concerning nationals or residents of the United States or the beneficiary country) as may be necessary or appropriate to carry out and enforce the tax laws of the United States and the beneficiary country (whether criminal or civil proceedings), including information which may otherwise be subject to nondisclosure provisions of the local law of the beneficiary country such as provisions respecting bank secrecy and bearer shares. The exchange of information agreement shall be terminable by either country on reasonable notice and shall provide that information received by either country will be disclosed only to persons or authorities (including courts and administrative bodies) involved in the administration or oversight of, or in the determination of appeals in respect of, taxes of the United States or the beneficiary country and will be used by such persons or authorities only for such purposes. (ii) Nondisclosure of qualified confidential information sought for civil tax purposes An exchange of information agreement need not provide for the exchange of qualified confidential information which is sought only for civil tax purposes if— (I) the Secretary of the Treasury, after making all reasonable efforts to negotiate an agreement which includes the exchange of such information, determines that such an agreement cannot be negotiated but that the agreement which was negotiated will significantly assist in the administration and enforcement of the tax laws of the United States, and (II) the President determines that the agreement as negotiated is in the national security interest of the United States. (iii) Qualified confidential information defined For purposes of this subparagraph, the term “qualified confidential information” means information which is subject to the nondisclosure provisions of any local law of the beneficiary country regarding bank secrecy or ownership of bearer shares. (iv) Civil tax purposes For purposes of this subparagraph, the determination of whether information is sought only for civil tax purposes shall be made by the requesting party. (D) Coordination with other provisions Any exchange of information agreement negotiated under subparagraph (C) shall be treated as an income tax convention for purposes of section 6103(k)(4). The Secretary may exercise his authority under subchapter A of chapter 78 to carry out any obligation of the United States under an agreement referred to in subparagraph (C). (E) Determinations published in the Federal Register The following shall be published in the Federal Register— (i) any determination by the President under subparagraph (C)(ii) (including the reasons for such determination), (ii) any determination by the Secretary under subparagraph (C)(ii) (including the reasons for such determination), and (iii) any finding by the Secretary under subparagraph (A)(ii) (and any termination thereof).

Source

26 USC § 274(h)(6)


Scoping language

For purposes of this subsection
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