FINLAND ESTATE TAX TREATY

ESTATE TAX TREATY

[Signed 3/3/52]

ARTICLE I

(1) The taxes referred to in this convention are the following
taxes asserted upon death:

(a) In the case of the United States of America: The Federal estate
tax, and

(b) In the case of the Republic of Finland: The inheritance tax,
the communal tax on inheritance, bequests, or devices, and the "poors
percentage."

(2) The present convention shall also apply to any other taxes of a
substantially similar character imposed by either contracting State
subsequently to the date of signature of the present convention.

ARTICLE II

(1) As used in this convention:

(a) The term "United States" means the United States of America,
and when used in a geographical sense includes only the States, the
Territories of Alaska and Hawaii, and the District of Columbia.

(b) The term "Finland" means the Republic of Finland.

(c) The term "tax" means the Federal estate tax imposed in the
United States, or the inheritance tax, the communal tax on inheritances,
bequests or devises, or the "poors percentage", imposed in Finland, as
the context requires.

(d) The term "competent authorities" means, in the case of the
United States, the Commission of Internal Revenue, as authorized by the
Secretary of the Treasury, and in the case of Finland, the Taxation
Department of the Ministry of Finance.

(2) In the application of the provisions of the present convention
by one of the contracting States, any term not otherwise defined shall,
unless the context otherwise requires, have the meaning which such term
has under the tax laws of that State.

ARTICLE III

(1) For the purposes of the present convention, the question
whether a decedent was at the time of his death domiciled in or a
citizen of the United States, or whether the decedent or the beneficiary
of a deceased person's estate was a resident in Finland at the time of
the decedent's death, shall be determined in accordance with the laws in
force in the United States or Finland, respectively.

(2) In the case of a decedent who at the time of death was a
citizen of or domiciled in the United States, or in the case of decedent
who at the time of death was a resident of Finland, or in the case of a
beneficiary of a deceased person's estate who at the time of the death
of such person was a resident of Finland, the situs of any of the
following property or property rights shall, for the purposes of the
imposition of the tax where the tax is imposed on the basis or the situs
of property, and for the purposes of credit, be determined exclusively
in accordance with the following rules:

(a) Immovable property shall be deemed to be situated at the place
where the land involved is located, The question whether any property or
right in property constitutes immovable property shall be determined in
accordance with the law of the place where the land involved is located.

(b) Tangible movable property (other than such property for which
specific provision is hereinafter made) and bank or currency notes and
other forms of currency recognized as legal tender in the place of
issue, shall be deemed to be situated at the place where such property
or currency are located at the time of death, or, if in transitu, at the
place of destination.

(c) Debts (including bonds, promissory notes, bills of exchange,
and insurance) shall be deemed to be situated at the place where the
debtor resides, or if the debtor is a corporation, at the place in or
under the laws of which such corporation was created or organized.

(d) Shares or stock in a corporation (including shares or stock
held by a nominee where the beneficial ownership is evidenced by scrip
certificates or otherwise) shall be deemed to be situated at the place
in or under the laws of which such corporation was created or organized.

(e) Ships and aircraft and shares thereof shall be deemed to be
situated at the place of registration or documentation of the ship or
aircraft.

(f) Goodwill as a trade, business, or professional asset shall be
deemed to be situated at the place where the trade, business, or
profession to which it pertains is carried on.

(g) Patents, trade-marks, and designs shall be deemed to be
situated at the place where they are registered or used.

(h) Copyrights, franchises, rights to artistic and scientific
works, and rights or licenses to use any copyrighted material, artistic
and scientific works, patents, trade-marks, or designs shall be deemed
to be situated at the place where the rights arising therefrom are
exercisable.

(i) All property other than hereinbefore mentioned shall be deemed
to be situated in accordance with the laws of the contracting State
imposing the tax on the basis of situs of property within such State,
but if neither of the contracting States impose the tax on the basis of
situs of property therein, then all such other property shall be deemed
to be situated where the deceased person was domiciled at the time of
his death.

ARTICLE IV

(1) In the case of a decedent (other than a citizen or domiciliary
of the United States) who at the time of his death was a resident of
Finland, the United States, in imposing the tax:

(a) shall allow a specific exemption, which would be allowable
under its law if the decedent had been domiciled in the United States,
in an amount not less than the proportion thereof which the value of the
property subjected to its tax bears to the value of the property which
would have been subjected to its tax if such decedent had been domiciled
in the United States, and

(b) shall (except for the purpose of sub-paragraph (a) of this
paragraph and for the purpose of any other proportionate allowance
otherwise provided) take no account of property situated according to
Article III outside the United States in determining the amount or rate
of tax.

(2) In the case of a decedent (other than a resident of Finland)
who at the time of his death was a citizen of or domiciled in the United
States, or in the case of a beneficiary of a deceased person's estate
(other than a beneficiary who at the time of the decedent's death was a
resident of Finland), and such deceased person was at time of death a
citizen of or domiciled in the United States, the taxation authority in
Finland, in imposing the tax:

(a) shall allow a specific exemption, which would be allowable
under its law if the decedent or beneficiary, as the case may be had
been resident in Finland, in an amount not less than the proportion
thereof which the value of the property subjected to its tax bears to
the value of the property which would have been subjected to its tax if
such decedent or beneficiary had been resident in Finland; and

ARTICLE V

(1) If the decedent was at the time of his death domiciled in or a
citizen of the United States, the United States shall allow against its
tax (computed without application of this article) a credit for the
amount of the tax imposed in Finland with respect to property situated
in Finland and included for tax purposes in both contracting States, but
the amount of the credit shall not exceed the portion of the tax imposed
by the United States which is attributable to such property. The
provisions of this paragraph shall not apply with respect to any
property referred to in paragraph (3) of this article.

(2) If the decedent was at the time of his death a resident of
Finland, or if the beneficiary of the deceased person's estate was at
the time of the death of such person a resident of Finland, the taxation
authority in Finland shall allow against its tax (computed without
application of this article) a credit for the amount of the tax imposed
by the United States with respect to property situated in the United
States and included for tax purposes in both contracting States, but the
amount of the credit shall not exceed the portion of the tax imposed in
Finland which is attributable to such property. The provisions of this
paragraph shall not apply with respect to any property referred to in
paragraph (3) of this article.

(3) If in a particular case taxes are imposed in one of the
contracting States by reason of the decedent's domicile or citizenship
thereof and in the other contracting State by reason of the decedent's
or beneficiary's residence therein, the taxation authorities in each
contracting State shall allow against their taxes (computed without
application of this article) a credit for the part of the taxes imposed
in other contracting State with respect to property included for tax in
both States and situated or deemed to be situated--

(a) in both contracting States, or

(b) outside of both States.

The total of the credits authorized by this paragraph shall be equal to
the amount of the taxes imposed with respect to such property in the
contracting State imposing the smaller amount of taxes, and shall be
divided between the two States in proportion to the amount of taxes
imposed in each of the two States with respect to such property.

(4) For the purpose of this article, the amount of the tax in each
contracting State attributable to any designated property shall be
ascertained after taking into account any applicable diminution or
credit otherwise provided, except any credit authorized by this article.

ARTICLE VI

(1) Any claim for credit or for a refund of tax founded on the
provisions Of the present convention shall be made within six years from
the date of death of the decedent.

(2) Any refund shall be made without payment of interest on the
amount so refunded.

ARTICLE VII

The competent authorities of the contracting States shall exchange
such information (being information available under the respective
taxation laws of the contracting States) as is necessary for carrying
out the provisions of the present convention or for the prevention of
fraud or the administration of statutory provisions against tax
avoidance in relation to the taxes which are the subject of the present
convention. Any information so exchanged shall be treated as secret and
shall not be disclosed to any person other than those concerned with the
assessment and collection of the taxes which are the subject of the
present convention. No information shall be exchanged which would
disclose any trade secret or trade process.

ARTICLE VIII

Each of the contracting States may collect taxes, which are the
subject of of this convention, imposed by the other contracting State
(as though such tax were imposed by the former State) as will ensure
that the credit or any other benefit granted under the present
convention shall not be enjoyed by persons not entitled to such
benefits.

ARTICLE IX

The State to which application is made for information or
assistance shall comply as soon as possible with the request addressed
to it except that such State may refuse to comply with the request for
reasons of public policy or if compliance would involve violation of a
trade, business, industrial or professional secret or trade process.

ARTICLE X

Where the representative of the estate of a decedent or beneficiary
of such estate shows proof that the action of the revenue authorities of
one of the contracting States has resulted or will result in double
taxation contrary to the provisions of the present convention, such
representative or beneficiary shall be entitled to present the facts to
the contracting State of which the decedent was a citizen at the time of
death or of which the beneficiary is a citizen, or if the decedent was
not a citizen of either of the contracting States at the time of death
or if the beneficiary is not a citizen of either of the contracting
States, such facts may be presented to the contracting State in which
the decedent was domiciled or resident at time of death or in which the
beneficiary is domiciled or resident. The competent authority of the
State to which the facts are so presented shall undertake to come to an
agreement with the competent authority of the other contracting State
with a view to equitable avoidance of the double taxation in question.

ARTICLE XI

(1) The provisions of this convention shall not be construed to
deny or affect in any manner the right of diplomatic and consular
officers to other or additional exemptions now enjoyed or which may
hereafter be granted to such officers.

(2) The provisions of this convention shall in no case increase the
tax liability in either contracting State.

(3) Should any difficulty or doubt arise as to the interpretation
or application of the present convention or its relationship to
conventions between one of the contracting States and any other State,
the competent authorities of the contracting States may settle the
question by mutual agreement.

ARTICLE XII

(1) The competent authorities of the two contracting States may
prescribe regulations necessary to carry into effect the present
convention within the respective States. With respect to the provisions
of this convention relating to exchange of information and mutual
assistance in the collection of taxes, such authorities may, by common
agreement, prescribe rules concerning matters of procedure, forms of
application and replies thereto, conversion of currency, disposition of
amounts collected, costs of collection, minimum amounts subject to
collection and related matters.

(2) The competent authorities of the two contracting States may
communicate with each other directly for the purpose of giving effect to
the provisions of this convention.

ARTICLE XIII

(1) The present convention shall be ratified and the instruments of
ratification shall be exchanged at Helsinki as soon as possible.

(2) The present convention shall become effective on the day of the
exchange of instruments of ratification and shall be applicable to
estates or inheritances in the case of persons who die on or after that
date. It shall continue effective for a period of five years beginning
with that date and indefinitely after that period, but may be terminated
by either of the contracting States at the end of that five-year period
or at any time thereafter, provided that at least six months prior
notice of termination has been given, the termination to become
effective on the first day of January following the expiration of the
six-month period.

DONE at Washington, in duplicate, in the English and Finnish
languages, the two texts having equal authenticity, this third day of
March, 1952.

FOR THE PRESIDENT OF THE
UNITED STATES OF AMERICA:

[SEAL] DEAN ACHESON

FOR THE PRESIDENT OF THE
REPUBLIC OF FINLAND:

[SEAL] JOHAN A. NYKOPP