Pearse Doherty
Ceist:822. Deputy Pearse Doherty asked the Tánaiste and Minister for Finance to set out the procedure for suspending a double taxation treaty; and if he will make a statement on the matter. [74054/25]
Amharc ar fhreagraTuesday, 13 January 2026
Ceisteanna (822)
Freagraí scríofa
A double taxation treaty is an international agreement entered into between two States and is governed by public international law and specifically by the Vienna Convention on the Law of Treaties of 1969, which entered into force on 27 January 1980 (“Vienna Convention”). The Vienna Convention codified existing norms of customary international law. Ireland accepts the principles of international law under Article 29.3 of the Constitution; Article 29.6 of the Constitution provides that the Oireachtas determines how international agreements are brought into domestic law.
Section 826 of the Taxes Consolidation Act of 1997 gives Ireland’s double taxation treaties legal effect under domestic legislation.
In negotiating double taxation treaties, Ireland, as a member of the Organisation for Economic Cooperation and Development (OECD), uses the OECD Model Tax Convention (MTC), adapting it, as appropriate, to Ireland’s domestic requirements.
Article 32 of the OECD MTC relates to “Termination” and provides that a double taxation treaty shall remain in force until terminated by a Contracting State.
It is Ireland’s policy to include such a termination provision in its double taxation treaties. While the specific text may vary from treaty to treaty, in general terms, the “Termination” Article provides that either Contracting State may terminate the treaty at any time after five years from the date on which the treaty enters into force, provided that at least six months prior written notice of termination has been given through diplomatic channels.
These “Termination” Articles are prescriptive in setting out when a treaty can be terminated and the date from which such a termination will take effect. To the extent that a treaty is terminated, it cannot be revived without a full renegotiation.
While a “Termination” Article is a standard element of both the OECD’s and UN’s model tax conventions, neither model provides for the suspension of a treaty. Therefore, Ireland’s double taxation treaties do not provide for suspension of the treaty by either Contracting State.
Article 60 of the Vienna Convention provides that “[a] material breach of a bilateral treaty by one of the parties entitles the other to invoke the breach as a ground for terminating the treaty or suspending its operation in whole or in part”. Article 60 is not prescriptive in terms of the date of effect of the suspension, or the possibility of reactivating the treaty.