Replaced by new DTA, which applies in UK from 1st April 2003 for
CT, 6th April 2003 for IT and 1st January 2004 for PRT. For US
withholding taxes it applies from 1st May 2003 and for other US
taxes from 1st January 2004. See DT19939Q.
(1) Where a resident or national of a Contracting State
considers that the actions of one or both of the Contracting States
result or will result in taxation not in accordance with this
Convention, he may, notwithstanding the remedies provided by the
national laws of those States, present his case to the competent
authority of the Contracting State of which he is a resident or
national.
(2) The competent authority shall endeavour, if the
objection appears to it to be justified and if it is not itself
able to arrive at an appropriate solution, to resolve the case by
mutual agreement with the competent authority of the other
Contracting State, with a view to the avoidance of taxation not in
accordance with the Convention. Where an agreement has been
reached, a refund as appropriate shall be made to give effect to
the agreement.
(3) The competent authorities of the Contracting States
shall endeavour to resolve by mutual agreement any difficulties or
doubts arising as to the interpretation or application of the
Convention. In particular the competent authorities of the
Contracting States may reach agreement on:
(a) the attribution of income, deductions, credits, or
allowances of an enterprise of a Contracting State to its permanent
establishment situated in the other Contracting State;
(b) the allocation of income, deductions, credits, or
allowances between persons;
(c) the nature of particular items of income;
(d) the meaning of terms not otherwise defined in this
Convention;
(e) the place where a particular item of income has its
source;
(f) the elimination of double taxation in respect of income
paid out of trusts.
(4) The competent authorities of the Contracting States may
communicate with each other directly for the purpose of reaching
agreement as contemplated by this Convention.
