having regard to all relevant facts and circumstances, that obtaining that benefit was one of the principal

purposes of any arrangement or transaction that resulted directly or indirectly in that benefit, unless it is

established that granting that benefit in these circumstances would be in accordance with the object and

purpose of the relevant provisions of the Covered Tax Agreement.

2. Paragraph 1 shall apply in place of or in the absence of provisions of a Covered Tax Agreement that deny all or part of the benefits that would otherwise be provided under the Covered Tax Agreement where

the principal purpose or one of the principal purposes of any arrangement or transaction, or of any person

concerned with an arrangement or transaction, was to obtain those benefits.

3. A Party that has not made the reservation described in subparagraph a) of paragraph 15 may also choose to apply paragraph 4 with respect to its Covered Tax Agreements.

4. Where a benefit under a Covered Tax Agreement is denied to a person under provisions of the Covered Tax Agreement (as it may be modified by this Convention) that deny all or part of the benefits that would

otherwise be provided under the Covered Tax Agreement where the principal purpose or one of the principal

purposes of any arrangement or transaction, or of any person concerned with an arrangement or transaction,

was to obtain those benefits, the competent authority of the Contracting Jurisdiction that would otherwise

have granted this benefit shall nevertheless treat that person as being entitled to this benefit, or to different

benefits with respect to a specific item of income or capital, if such competent authority, upon request from

that person and after consideration of the relevant facts and circumstances, determines that such benefits

would have been granted to that person in the absence of the transaction or arrangement. The competent

authority of the Contracting Jurisdiction to which a request has been made under this paragraph by a resident

of the other Contracting Jurisdiction shall consult with the competent authority of that other Contracting

Jurisdiction before rejecting the request.

5. Paragraph 4 shall apply to provisions of a Covered Tax Agreement (as it may be modified by this Convention) that deny all or part of the benefits that would otherwise be provided under the Covered Tax

Agreement where the principal purpose or one of the principal purposes of any arrangement or transaction,

or of any person concerned with an arrangement or transaction, was to obtain those benefits.

6. A Party may also choose to apply the provisions contained in paragraphs 8 through 13 (hereinafter referred to as the “Simplified Limitation on Benefits Provision”) to its Covered Tax Agreements by making the notification described in subparagraph c) of paragraph 17. The Simplified Limitation on Benefits

Provision shall apply with respect to a Covered Tax Agreement only where all Contracting Jurisdictions have

chosen to apply it.

7. In cases where some but not all of the Contracting Jurisdictions to a Covered Tax Agreement choose to apply the Simplified Limitation on Benefits Provision pursuant to paragraph 6, then, notwithstanding the

provisions of that paragraph, the Simplified Limitation on Benefits Provision shall apply with respect to the

granting of benefits under the Covered Tax Agreement:

a) by all Contracting Jurisdictions, if all of the Contracting Jurisdictions that do not choose pursuant to paragraph 6 to apply the Simplified Limitation on Benefits Provision agree to such

application by choosing to apply this subparagraph and notifying the Depositary accordingly;

or

b) only by the Contracting Jurisdictions that choose to apply the Simplified Limitation on Benefits Provision, if all of the Contracting Jurisdictions that do not choose pursuant to paragraph 6 to

apply the Simplified Limitation on Benefits Provision agree to such application by choosing to

apply this subparagraph and notifying the Depositary accordingly.

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