Common use of Where Clause in Contracts

Where. a) an enterprise of one of the States participates directly or indirectly in the management, control or capital of an enterprise of the other State, or b) the same persons participate directly or indirectly in the manage- ment, control or capital of an enterprise of one of the States and an enter- prise of the other 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 inde- pendent enterprises, then any profits which would, but for those condi- tions, have accrued to one of the enterprises, but, by reason of those con- ditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly. It is understood, however, that the fact that associated enterprises have concluded arrangements, such as cost- sharing arrangements or general services agreements, for or based on the allocation of executive, general administrative, technical and commer- cial expenses, research and development expenses and other similar expenses, is not in itself a condition as meant in the preceding sentence.

Where. a) an enterprise of one a Contracting State participates directly or indirectly in the management, control or capi- tal of an enterprise of the States participates other Contracting State; or b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of the other State, or b) the same persons participate directly or indirectly in the manage- ment, control or capital of a Contracting State and an enterprise of one of the States and an enter- prise of the other Contracting State, and in either case conditions are made or imposed between the two enterprises in their commercial or financial ▇▇▇▇▇- cial relations which differ from those which would be made between inde- pendent independent enterprises, then any profits prof- its which would, but for those condi- tionsconditions, have accrued to one of the enterprises, but, by reason of those con- ditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly. It is understood, however, that the fact that associated enterprises have concluded arrangements, such as cost- cost sharing arrangements or general services agreements, for or based on the allocation of executive, general administrative, technical and commer- cial commercial expenses, research and development expenses and other similar expenses, is not in itself a condition as meant in the preceding sentence.