Decision ID: 002391

In October 1992 the 1971 Fund Assembly considered that work carried out by lawyers and other experts on behalf of the 1971 Fund in connection with incidents involving the Fund should be considered as fulfilling the criterion of ‘important work which is necessary for the exercise of its official activities’ and that the Governments of Member States were thus under an obligation, pursuant to Article 34.2 of the 1971 Fund Convention, to take appropriate measures for the remission or refund of the amount of indirect taxes or sales taxes included in the costs of such services. The Assembly instructed the Director to inform States where the Fund had encountered problems regarding the application of Article 34.2 of the position taken by the Assembly and to request a refund of any such taxes. The Director was invited to examine the possibility of adopting a resolution clarifying the meaning of ‘substantial purchases’ and ‘important work’ in Article 34.2 of the Fund Convention and to submit the matter to the Assembly for consideration at its 16th session.

Date: 30.09.1992
Category: Application of the Conventions
Subject: Interpretation of Article 34.2 of the 1971 and 1992 Fund Conventions regarding reimbursement of taxes