(a) the term "person" includes an individual, an estate, a
trust, a partnership, a company, and any other body of persons;
(b) the term "company" means any body corporate or any
entity that is treated as a body corporate for tax purposes;
(c) the term "enterprise" applies to the carrying on of any
business;
(d) the term "business" includes the performance of
professional services and of other activities of an independent
character;
(e) the terms "enterprise of a Contracting State" and
"enterprise of the other Contracting State" mean respectively an
enterprise carried on by a resident of a Contracting State, and an
enterprise carried on by a resident of the other Contracting State;
(f) the term "international traffic" means any transport by
a ship or aircraft, except when the ship or aircraft is operated
solely between places in the other Contracting State;
(g) the term "competent authority" means:
(i) in the United States: the Secretary of the Treasury or
his delegate; and
(ii) in the United Kingdom: the Commissioners of Inland
Revenue or their authorised representative;
(h) the term "United States" means the United States of
America, and includes the states thereof and the District of
Columbia; such term also includes the territorial sea thereof and
the sea bed and sub-soil of the submarine areas adjacent to that
territorial sea, over which the United States exercises sovereign
rights in accordance with international law; the term, however,
does not include Puerto Rico, the Virgin Islands, Guam or any other
United States possession or territory;
(i) the term "United Kingdom" means Great Britain and
Northern Ireland, including any area outside the territorial sea of
the United Kingdom which in accordance with international law has
been or may hereafter be designated, under the laws of the United
Kingdom concerning the Continental Shelf, as an area within which
the rights of the United Kingdom with respect to the sea bed and
sub-soil and their natural resources may be exercised;
(j) the term "national" of a Contracting State, means:
(i) in relation to the United States,
(A) any individual possessing the citizenship of the United
States; and
(B) any legal person, partnership, association or other
entity deriving its status as such from the laws in force in the
United States;
(ii) in relation to the United Kingdom,
(A) any British citizen, or any British subject not
possessing the citizenship of any other Commonwealth country or
territory, provided he has the right of abode in the United
Kingdom; and
(B) any legal person, partnership, association or other
entity deriving its status as such from the laws in force in the
United Kingdom;
(k) the term "qualified governmental entity" means:
(i) a Contracting State, or a political subdivision or local
authority of a Contracting State;
(ii) a person that is wholly owned, directly or indirectly,
by a Contracting State or a political subdivision or local
authority of a Contracting State, provided
(A) it is organized under the laws of the Contracting State;
(B) its earnings are credited to its own account with no
portion of its income inuring to the benefit of any private person;
(C) its assets vest in the Contracting State, political
subdivision or local authority upon dissolution; and
(D) it does not carry on a business;
(l) the term "Contracting State" means the United States or
the United Kingdom, as the context requires;
(m) the term "real property" means any interest (other than
an interest solely as a creditor) inland, crops or timber growing
on land, mines, wells and other places of extraction of natural
resources, as well as any fixture built on land (buildings,
structures, etc.) and other property considered real or immovable
property under the law of the Contracting State in which the
property in question is situated. The term shall in any case
include livestock and equipment used in agriculture and forestry,
rights to which the provisions of general law respecting landed
property apply, usufruct of real property and rights to variable or
fixed payments as consideration for the working of, or the right to
work, mineral deposits and other natural resources; ships, boats
and aircraft shall not be regarded as real property.
(n) the term "conduit arrangement" means a transaction or
series of transactions:
(i) which is structured in such a way that a resident of a
Contracting State entitled to the benefits of this Convention
receives an item of income arising in the other Contracting State
but that resident pays, directly or indirectly, all or
substantially all of that income (at any time or in any form) to
another person who is not a resident of either Contracting State
and who, if it received that item of income direct from the other
Contracting State, would not be entitled under a convention for the
avoidance of double taxation between the state in which that other
person is resident and the Contracting State in which the income
arises, or otherwise, to benefits with respect to that item of
income which are equivalent to, or more favourable than, those
available under this Convention to a resident of a Contracting
State; and
(ii) which has as its main purpose, or one of its main
purposes, obtaining such increased benefits as are available under
this Convention.
(o) the term "pension scheme" means any plan, scheme, fund,
trust or other arrangement established in a Contracting State which
is:
(i) generally exempt from income taxation in that State; and
(ii) operated principally to administer or provide pension
or retirement benefits or to earn income for the benefit of one or
more such arrangements.
