(1) Where:
a)
an enterprise of a Contracting State participates directly or indirectly in the
management‚ control or capital of an enterprise of the other Contracting
State‚ or
b)
the same persons participate directly or indirectly in the management‚ 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 conditions‚ 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.
(2) Where a Contracting State includes in the profits of an enterprise of that State - and
taxes accordingly - profits on which an enterprise of the other Contracting State has been
charged to tax in that other State and the profits so included are profits which would have
accrued to the enterprise of the first-mentioned State if the conditions made between the
two enterprises had been those which would have been made between independent
enterprises‚ then that other State may make an appropriate adjustment 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.