On July 16, the Senate ratified by a 94-2 vote the protocol amending the tax treaty with Spain, after defeating two amendments offered by Senator Rand Paul (R-KY).

The amendments, both defeated on votes of 4-92, would have:

• created a higher standard for information sharing, requiring that it be individualized and relevant to an individual investigation
• accelerated the effective date of the provisions of the protocol

In a floor speech prior to the votes, Senator Paul expressed concern that the protocols would facilitate violating the rights of Americans with foreign bank accounts and make it easier for tax authorities to obtain bank deposit information.

The Senate is considering four protocols, amending tax treaties with Spain, Switzerland, Japan, and Luxembourg (in that order). Similar Paul amendments to the other three protocols are to remain in order under Senate rules, but Senator Paul is not expected to force votes on the additional amendments.

Foreign Relations Committee Chairman Jim Risch (R-ID) earlier announced that the Senate will hold final votes on ratification of the remaining protocols, amending tax treaties with Switzerland, Japan, and Luxembourg, on July 17.

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