ARTICLE 8

SHIPPING AND AIR TRANSPORT

1. Profits from the operation of ships or aircraft in international traffic shall be tax-

able only in the Contracting State in which the place of effective management of the

enterprise is situated.

2. If the place of effective management of a shipping enterprise is aboard a ship,

then it shall be deemed to be situated in the Contracting State in which the home har-

bour of the ship is situated, or, if there is no such home harbour, in the Contracting State

of which the operator of the ship is a resident.

3. The provisions of paragraph 1 shall also apply to profits from the participation in

a pool, a joint business or an international operating agency.

ARTICLE 9

ASSOCIATED ENTERPRISES

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, con-

trol 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 be-

tween 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 in-

dependent enterprises, then that other State, if it agrees that the adjustment made by the

first-mentioned State is justified both in principle and as regards the amount, shall 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

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