[Code of Federal Regulations]
[Title 26, Volume 18, Parts 500 to 599]
[Revised as of April 1, 2000]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR521.116]

[Page 152-153]
 
                       TITLE 26--INTERNAL REVENUE
 
     CHAPTER 1--INTERNAL REVENUE SERVICE DEPARTMENT OF THE TREASURY 
                               (Continued)
 
PART 521--DENMARK--Table of Contents
 
                       Subpart--General Income Tax
 
Sec. 521.116  Reciprocal administrative assistance.

    (a) General. (1) By Article XVII of the convention, the United 
States and Denmark adopt the principle of exchange of such information 
as is necessary for carrying out the provisions of the convention or for 
the prevention of fraud or for the detection of practices which are 
aimed at reduction of the revenues of either country, but not including 
information which would disclose a trade, business, industrial or 
professional secret or trade process.
    (2) The information and correspondence relative to exchange of 
information may be transmitted directly by the Commissioner of Internal 
Revenue to the Chief of the Taxation Department of the Ministry of 
Finance (Generaldirektoren for Skattevaesenet) of Denmark.
    (b) Information to be furnished in due course. (1) Pursuant to such 
principle, withholding agents shall, in the preparation of withholding 
returns, Form 1042, report on such returns, for the calendar year 1949 
and each subsequent calendar year, in addition to the items of income 
upon which tax has been withheld at the source, those items of income 
paid to a nonresident alien individual resident in Denmark, or to a 
Danish corporation, upon which tax has not been withheld at the source. 
Such return shall show the same information with respect to such items 
of income upon which tax has not been withheld at the source as is shown 
with respect to items of income upon which the tax has been withheld at 
the source.
    (2) In accordance with the provisions of Article XVII of the 
convention, the Commissioner of Internal Revenue will transmit to the 
Chief of the Taxation Department of the Ministry of Finance

[[Page 153]]

of Denmark, as soon as practicable after the close of the calendar year 
1949, and of each calendar year thereafter during which the convention 
is in effect, the following information relating to such calendar year: 
The names and addresses of all persons whose addresses are in Denmark as 
disclosed on such withholding return, Form 1042, deriving from sources 
within the United States dividends interest (other than coupon bond 
interest), rents, royalties, salaries, wages, pensions, annuities and 
other fixed or determinable annual or periodical profits or income, and 
the amount of such income with respect to such persons as disclosed on 
such return, together with ownership certificate, Form 1001-D, filed in 
connection with coupon bond interest. Such transmission shall constitute 
compliance with Article XVII of the convention and of Secs. 521.101 to 
521.117.
    (c) Information in specific cases. Under the provisions and 
limitations of Article XVII of the convention, and subject to the 
provisions of Article XIX and Article XXII of the convention, and upon 
the request of the Chief of the Taxation Department of the Ministry of 
Finance of Denmark, the Commissioner of Internal Revenue shall furnish 
to the Chief of the Taxation Department information available to or 
obtainable by the Commissioner of Internal Revenue relative to the tax 
liability of any person under the revenue laws of Denmark in any case in 
which such information is necessary to the administration of the 
provisions of the convention or for the prevention of fraud or the 
administration of statutory provisions against tax avoidance.