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TMI BlogLimitation of BenefitsX X X X Extracts X X X X X X X X Extracts X X X X ..... instrumentality of that State, political subdivision or local authority; c) a company or other entity, if the principal class of its shares is regularly traded on one or more recognised stock exchanges; d) a person, other than an individual, that is a non-profit organisation agreed upon by the competent authorities of the Contracting States; e) a person other than an individual if, at that time and on at least half of the days of a twelve-month period that includes that time, persons who are residents of that Contracting State and that are entitled to benefits of this Agreement under subparagraphs a) to d) own, directly or indirectly, at least 50 per cent of the shares of the person. 3.a) A resident of a Contracting State shall be entitled ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt or such connected person in the other Contracting State. Whether a business activity is substantial for the purposes of this paragraph shall be determined based on all the facts and circumstances. c) For purposes of applying this paragraph, activities conducted by connected persons with respect to a resident of a Contracting State shall be deemed to be conducted by such resident. 4. A company that is a resident of a Contracting State shall also be entitled to a benefit that would otherwise be accorded under Article 10 if: a) at the time when the benefit otherwise would be accorded and on at least half of the days of any twelve-month period that includes that time, at least 95 per cent of the aggregate vote and value of its shares (and at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt authority that neither its establishment, acquisition or maintenance, nor the conduct of its operations, had as one of its principal purposes the obtaining of benefits under this Agreement. The competent authority of the Contracting State to which a request has been made, under this paragraph, by a resident of the other State, shall consult with the competent authority of that other State before either granting or denying the request. 6. For the purposes of this and the previous paragraphs of this Article: a) the term recognised stock exchange means: (i) any stock exchange established and regulated as such under the laws of either Contracting State; and (ii) any other stock exchange agreed upon by the competent authorities of the Contrac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall be deemed to be a company and to hold the same capital of the company paying the dividends as such capital the company claiming the benefit with respect to the dividends holds; f) the term disproportionate class of shares means any class of shares of a company or entity resident in one of the Contracting States that entitles the shareholder to disproportionately higher participation, through dividends, redemption payments or otherwise, in the earnings generated in the other Contracting State by particular assets or activities of the company; g) the term qualifying intermediate owner means an intermediate owner that is either: (i) a resident of a State that has in effect with the Contracting State from which a benefit under this Agreem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e portion of any dividends that are effectively exempt from tax in the person s Contracting State of residence, whether through deductions or otherwise; and (ii) except with respect to the portion of any dividend that is taxable, a tested group s gross income shall not take into account transactions between companies within the tested group. 7. The competent authorities of the Contracting States may by mutual agreement settle the mode of application of paragraphs 1 to 6 of this Article. 8. Where an enterprise of a Contracting State derives income from the other Contracting State and the income from the other Contracting State is attributable to a permanent establishment which that enterprise has in a third jurisdiction, the tax benefits tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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