AGREEMENT BETWEEN THE GOVERNMENT OF GRENADA AND THE GOVERNMENT OF ICELAND CONCERNING THE EXCHANGE OF INFORMATION ON TAX MATTERS

The Government of Grenada and the Government of Icelando desiring to have of concludean Agreementconcerningthe exchange information on tax mattersn agreedas follows:

Article 1 of Object and Scope the Agreement

Partiesshall provideassistance through The competent authorities the Contracting of relevantto the administration enforcement and of exchange informationthat is foreseeably of taxes coveredby this Agreement. the domesticlaws of the ContractingPartiesconcerning relevantto the determination, Suchinformationshall includeinformationthat is foreseeably of assessment collectionof suchtaxes,the recoveryand enforcement tax claims,or the and in of investigationor prosecution tax matters.Informationshall be exchanged accordance with the provisionsof this Agreementand shall be treatedas confidentialin the manner provided in Article 8. The rights and safeguards securedto persons by the laws or practiceof the requested to Partyremainapplicable the extentthat they do not administrative of undulypreventor delayeffectiveexchange information.

Article 2 Jurisdiction Party is not obligated provideinformationwhich is neitherheld by its to A requested authorities nor in the possession control of personswho are within its territorial or jurisdiction.

Article 3 Taxescovered

1.

Thetaxeswhich aresubject this Agreement taxesof everykind anddescription of are

imposed the Contracting by Parties the dateof signature the Alreement. at of

2.

This Agreementshall also apply to any identical taxes imposedafter the date of

signature the Agreement additionto or in placeof the existingtaxes. This Agreement of in shall also apply to any substantially similar taxesimposedafter the date of signature the of Agreement additionto or in placeof the existingtaxesif the competent in authorities the of Contracting Parties agree. Furthermore, taxescovered so the may be expanded modifiedby or

mutual agreement of the Contracting Parties in the form of an exchange of letters. The competent authorities of the Contracting Parties shall notiff each other of any substantial changes to the taxation and related information gathering measures covered by the Agreement.

Article 4 Definitions For thepurposes this Agreement, of unless otherwise defined: Icelandor Grenada the contextrequires; a) the term ooContracting Party"means as b) c) the term'oGrenada" means countryof Grenada; the the term o'Iceland" meansIceland and, when used in a geographical sense, means territory of Iceland,includingits tenitorial sea,and any areabeyond the the territorial seawithin which lceland,in accordance with international law, jurisdiction sovereign rightswith respect the seabed,its subsoil exercises or to andits superjacent waters, their naturalresources; and d) the term "competent authority"means: (i) in the case Grenada, Ministerof Finance his authorised of the or representative; (iD in Iceland, the Minister of Finance or the Minister's authorised representative; e) the term "person" includesan individual, a companyand any other body of persons; the term oocompany" means body corporate any entity that is treatedas a any or body corporate tax purposes; for g) the term "publicly tradedcompany"means any company whoseprincipalclass proiid.d its listedshares ofsharesis listedon a recognised stockexchange can be readilypurchased soldby the public.Shares be purchased sold"by or can or the public" if the purchase sale of shares not implicitly or explicitly or is restricted a limited groupof investors; to h) the term "principal class of shares"meansthe class or classesof shares representing majorityof thevoting powerandvalueof the company; a

1.

i)

agreed upon stockexchange" meansany stockexchange the term "recognised Parties; authorities the Contracting of by the competent fund or scheme" means any pooledinvestment the term "collectiveinvestment fund vehicle,irrespective legalform. The term "public collectiveinvestment of providedthe units, fund or scheme means collectiveinvestment any or scheme" sold in can or shares otherinterests the fund or scheme be readilypurchased, or in redeemed the public. Units, shares other interests the fund or scheme or by sale "by canbe readilypurchased, or redeemed the public" if the purchase, sold or redemptionis not implicitly or explicitly restrictedto a limited group of investors;

i)

k)

applies; the term "tax" means tax to which the Agreement any Partyrequesting information; the the term "applicantParty"means Contracting to Party" meansthe ContractingParty requested provide the term "requested information; gatheringmeasures" meanslaws and administrative or the term ooinformation judicial procedures Party to obtain and provide the that enablea Contracting requested information;

D
m)

n)

o)

the term "information" means any fact, statementor record in any form whatever;

p)

means matters tax involving intentional conduct the term "criminal tax matters" which is liableto prosecution underthe criminallawsof the applicantparty;

q)

the term "criminal laws" meansall criminal laws designated such under as domesticlaw irrespective whethercontainedin the tax laws, the criminal of codeor otherstatutes.

2.

As regards applicationof this Agreement any time by a Contracting the at Party,any

term not definedthereinshall,unlessthe contextotherwise requires, havethe meaning that it hasat that time underthe law of that Party,any meaning underthe applicable laws of that tax givento the term underotherlaws of that Party. Partyprevailingover a meaning

Article 5 Exchange Information upon Request of information Partyshallprovideuponrequest The competent authorityof the requested

1.

without regard referredto in Article 1. Suchinformationshallbe exchanged for the purposes would constitutea crime under the laws of the to whetherthe conductbeing investigated Party. in requested Partyifsuch conductoccurred the requested Party of authorityof the requested If the informationin the possession the competent

2.

for that Partyshalluseall it is not sufficientto enable to complywith the request information, measures providethe applicantParty with the information to relevantinformationgathering Partymay not needsuchinformationfor its own requested, notwithstanding the requested that tax purposes. If specifically requestedby the competentauthority of an applicant Party, the

3.

Partyshallprovideinformationunderthis Article, to the competent authorityof the requested extent allowable under its domesticlaws, in the form of depositionsof witnessesand authenticated copiesof originalrecords. authoritiesfor the purposes Each ContractingParty shall ensurethat its competent

4.

specifiedin Article 1 of the Agreement,have the authority to obtain and provide upon request:
a)

informationheldby banks,otherfinancialinstitutions, anypersonactingin and an agency fiduciarycapacity includingnominees trustees; and or information regarding the ownership of companies,partnerships,trusts, foundations, including,within the constraints of "Anstalten"and otherpersons, Article 2, ownership informationon all suchpersons an ownership in chain;in the caseof trusts,informationon settlors, trusteeiandbeneficiaries; in the and case of foundations,information on founders,membersof the foundation councilandbeneficiaries. Further, this Agreement doesnot createan obligation on the ContractingPartiesto obtain or provide ownershipinformation with respect publicly tradedcompanies public collectiveinvestment to funds or or schemesunless such information can be obtained without giving rise to disproportionate difficulties.

b)

5.

The competent authorityof the applicant Partyshallprovidethe following information

to the competent authority of the requested Party when making a requestfor information under the Agreementto demonstrate foreseeable the relevanceof the information to the request:
a) b)

the identity of the personunderexamination investigation; or of a statement the information soughtincluding its nature and the form in which the applicant Partywishesto receivethe informationfrom the requested Purty;

c) d)

thetax purpose which the informationis sought; for groundsfor believingthat the informationrequested held in the requested is within thejurisdiction the of Partyor is in thepossession controlof a person or requested Purty; of to the extent known, the name and address any personbelievedto be in possession therequested of information;

e)

a statement that the requestis in conformitywith the law and administrative practices the applicant of Purty,that if the requested informationwaswithin the jurisdiction of the applicant Partythenthe competent authorityof the applicant Partywould be able to obtainthe informationunderthe laws of the applicant Party or in the normal course of administrativepractice and that it is in conformitywith this Agreement;

g)

a statement the applicantPartyhaspursuedall meansavailablein its own that tenitory to obtain the information, except those that would give rise to disproportionate culties. diffi

6.

The competent authority of the requestedParty shall forward the requested

informationas promptly as possibleto the applicantParty.To ensure promptresponse, a the competent authorityof the requested Partyshall:
a)

Confirm receipt of a requestin writing to the cornpetentauthority of the applicantParty and shall notify the competent authorityof the applicantParty of deficienciesin the request,if any, within 60 days of the receipt of the request.

b)

If the competent authorityof the requested Partyhasbeenunableto obtainand providethe informationwithin 90 daysof receiptof the request, includingif it

encounters obstacles furnishingthe informationor it refusesto furnish the in information,it shall immediatelyinform the applicantP*ty, explainingthe or for reason its inabilitv.the natureof the obstacles the reasons its refusal. for

Article 6 Tax Examinations Abroad

1.

authorityof the other of A Contracting Partymay allow representatives the competent

Party to interview individuals Contracting Party to enterthe tenitory of the first-mentioned The competent and examinerecordswith the witten consentof the personsconcerned. authority of the firstParty shall notify the competent authority of the second-mentioned Partyof the time andplaceof the meetingwith the individualsconcerned. mentioned authorityof one ContractingParty, the competent At the requestof the competent

2.

authority of Partymay allow representatives the competent authorityof the otherContracting part of a tax examination the in at of the first-mentioned Partyto be present the appropriate second-mentioned Partv.

3.

2 authorityof the If the request referredto in paragraph is acceded the competent to,

notify the competent Contracting Partyconducting examination the shall,as soonaspossible, authorityof the other Party about the time and place of the examination, authority or the official designated carry out the examination the procedures conditions to and and required by the first-mentioned Partyfor the conductof the examination. decisions All with respect the to conduct the tax examination of shallbe madebv the Partvconductins examination. the

Article 7 Possibilityof Declininga Request 1. The requested Party shall not be requiredto obtain or provide informationthat the

applicant Party would not be able to obtain under its own laws for purposesof the administration enforcement its own tax laws. The competent or of authorityof the requested Partymay declineto assist wherethe request not madein conformitywith this Agreement. is

2.

The provisions of this Agreementshall not impose on a ContractingParty the

obligation to supply information which would disclose any trade, business,industrial, commercial or professional secret or trade process. Notwithstanding the foregoing, 4 informationof the type referredto in Article 5, paragraph shall not be treatedas such a it the merelybecause meets criteriain that paragraph. secret tradeprocess or The provisions of this Agreementshall not impose on a ContractingParty the

3.

which would revealconfidentialcommunications obligationto obtainor provideinformation, wheresuch between client and an attorney,solicitor or other admittedlegal representative a are: communications a) b) produced thepurposes for ofseekingor providinglegaladvice; or produced thepurposes usein existing contemplated proceedings. legal for of or

4.

of Party may decline a requestfor informationif the disclosure the The requested

informationwould be contraryto public policy (ordrepublic). A request informationshallnot be refusedon the groundthat the tax claim giving for

5.

riseto the request disputed. is

6,

The requested Party may decline a requestfor information if the information is

requested the applicantParty to administeror enforcea provision of the tax law of the by applicant Putty, or any requirementconnectedtherewith, which discriminatesagainst a nationalof the requested Partyas compared with a nationalof the applicant Partyin the same circumstances.

Article 8 Confidentialitv Any information receivedby a ContractingParty under this Agreementshall be treatedas confidentialand may be disclosed (includingcourts only to persons authorities or and administrative bodies)in the jurisdiction of the ContractingParty concerned with the assessment collectionof, the enforcement prosecution respect or the determination or or in of,

Suchpersonsor authorities of appeals relationto, the taxescoveredby this Agreement. in They may disclosethe information in shall use such information only for such purposes. The may not be disclosed any to publiccourtproceedings in judicial decisions. information or other person or entity or authority or any other jurisdiction without the expresswritten Party. authorityof the requested consent the competent of

Article 9 Costs by shall be agreed the Contracting Incidence costsincurredin providingassistance of Parties.

Article 10 Procedure Mutual Agreement Where diffrculties or doubts arise betweenthe ContractingPartiesregardingthe

1.

competent authorities shall the implementation interpretation this Agreement, respective or of endeavour resolve matterbv mutualaqreement. to the referredto in paragraph the competent 1, authorities of In additionto the agreements

2.

to the Contracting Parties may mutuallyagreeon the procedures be usedunderArticles 5 and 6.

3.

with each The competentauthoritiesof the ContractingPartiesmay communicate

otherdirectlyfor purposes reaching of agreement underthis Article.

Article 11 Entrv into Force

1.

Eachof the Contracting Partiesshall notiff the other in writing of the completionof

theprocedures required its law for the entryinto forceof this Agreement. by

2.

shallenterinto forceon the thirtiethday afterthe receiptof the laterof The Agreement

haveeffect: notifications shallthereupon and these a) b) on for criminaltax matters, that date; for all other matterscoveredin Article 1, for taxableperiodsbeginningon or of after the first day of January the year next following the dateon which the enters into force,or wherethereis no taxableperiod,for all charges Agreement of to tax arisingon or after the first day of January the year next following the into force. enters dateon which the Aereement

Article 12 Termination Party.Either by This Agreement shall remainin force until terminated a Contracting

1.

to by the Partymay terminate Agreement giving written noticeof termination the Contracting to the shallcease haveeffecton the first day Party.In suchcase, Agreement otherContracting of the monthfollowing the end of the periodof six monthsafterthe dateof receiptof notice Party. of termination the otherContracting by

2.

In the event of termination,both ContractingParties shall remain bound by the

provisions Article 8 with respect anyinformationobtained underthe Agreement. to of being duly authorised theretohave signedthe In witnesswhereof the undersigned Asreement. in Doneat Paris this 19th of May 20l0,in duplicate theFnglishlanguage. day

For the Government

For the Government of Iceland:

of Grenada, A$rhdnu-