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(1) Where a) an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enter- prise of the other Contracting State, or b) the same persons participate directly or indirectly in the man- agement, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State, and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those condi- tions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly.
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(2) Where a Contracting State includes in the profits of an enterprise of that Contracting State – and taxes accordingly – profits on which an enterprise of the other Contracting State has been charged to tax in that other Contracting State and the prof- its so included are profits which would have accrued to the enterprise of the first-mentioned Contracting State if the condi- tions made between the two enterprises had been those which would have been made between independent enterprises, then that other Contracting State shall make an appropriate adjust- ment to the amount of the tax charged therein on those profits. In determining such adjustment, due regard shall be had to the other provisions of this Agreement and the competent authorities of the Contracting States shall, if necessary, consult each other.
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(3) Notwithstanding the provisions of paragraph 1, a Contract- ing State shall not change the profits of an enterprise of that Con- tracting State in the circumstances referred to in that paragraph after ten years from the end of the taxable year in which the profits that would be subject to such change would, but for the condi- tions referred to in that paragraph, have accrued to that enter- prise. The provisions of this paragraph shall not apply in the case of fraud or wilful default or when the competent authority of a Contracting State notifies within that ten-year period the compe- tent authority of the other Contracting State of the enterprise of that other Contracting State whose tax liability to that other Con- tracting State may be directly affected by the taxation provided for in paragraph 1 on an enterprise of the first-mentioned Con- tracting State by that Contracting State.