In exercise of the powers conferred upon him by
Articles 115 and 119 of the Charter and Articles 8 and 11(f) of the General Standards to
Govern the Operations of the General Secretariat of the Organization of American States.
1. Since 1946, subject to certain conditions, the General Secretariat
has reimbursed income taxes paid by staff members on their income from the General
Secretariat of the Organization of American States.
2. Funds for reimbursements are provided only by the Member States to
which those taxes are paid.
3. Over the years it has been necessary to change the method of
reimbursement in response to the requirements of some Member States funding reimbursements
for their nationals.
4. In the Spring of 1982, the United States Government informed the
General Secretariat that it wished to enter into a formal agreement with the General
Secretariat for the reimbursement of taxes for United States taxpaying staff members and
that it would require certain changes in the General Secretariat's tax reimbursement
program as a precondition to continued funding of tax reimbursements for United States
citizens and permanent residents.
5. The United States Government has ceased funding tax reimbursement
programs for international organizations that have refused to alter their tax
reimbursement practices in accordance with requirements of the United States Government.
6. On January 10, 1984, the General Secretariat entered into a Tax
Reimbursement Agreement which assures that the United States Government will continue to
fund tax reimbursements at least until January 1, 1989, but requires certain changes in
the methodology for computing those reimbursements.
7. In order to be consistent with the methodology set forth in the
agreement, Staff Rule 103.19 must be modified accordingly.