(1) In this Arrangement, unless the context otherwise requires -
(a) The term `United Kingdom` means Great Britain and Northern
Ireland, excluding the Channel Islands and the Isle of Man.
(b) (Deleted by SI 1968/1867)
(c) The terms `one of the territories` and `the other
territory` mean the United Kingdom or Grenada, as the context
requires.
(d) The term `tax` means United Kingdom tax or Grenada tax,
as the context requires.
(e) The term `person` includes any body of persons,
corporate or not corporate.
(f) The term `company` includes any body corporate.
(g) The terms `resident of the United Kingdom` and `resident
of Grenada` mean respectively any person who is resident in the
United Kingdom for the purposes of United Kingdom tax and not
resident in Grenada for the purposes of Grenada tax and any person
who is resident in Grenada for the purposes of Grenada tax and not
resident in the United Kingdom for the purposes of United Kingdom
tax; and a company shall be regarded as resident in the United
Kingdom if its business is managed and controlled in the United
Kingdom and as resident in Grenada if its business is managed and
controlled in Grenada.
(h) The terms `resident of one of the territories` and
`resident of the other territory` mean a person who is a resident
of the United Kingdom or a person who is a resident of Grenada, as
the context requires.
(i) The terms ` United Kingdom enterprise` and `Grenada
enterprise` mean respectively an industrial or commercial
enterprise or undertaking carried on by a resident of the United
Kingdom and an industrial or commercial enterprise or undertaking
carried on by a resident of Grenada; and the terms `enterprise of
one of the territories` and `enterprise of the other territory`
mean a United Kingdom enterprise or a Grenada enterprise, as the
context requires.
(j) The term `industrial or commercial profits` includes
rentals in respect of cinematograph films.
(k) The term `permanent establishment`, when used with
respect to an enterprise of one of the territories, means a branch,
management or other fixed place of business, but does not include
an agency unless the agent has, and habitually exercises, a general
authority to negotiate and conclude contracts on behalf of such
enterprise or has a stock of merchandise from which he regularly
fills orders on its behalf.
An enterprise of one of the territories shall not be deemed to
have a permanent establishment in the other territory merely
because it carries on business dealings in that other territory
through a bona fide broker or general commission agent acting in
the ordinary course of his business as such.
The fact that an enterprise of one of the territories
maintains in the other territory a fixed place of business
exclusively for the purchase of goods or merchandise shall not of
itself constitute that fixed place of business a permanent
establishment of the enterprise.
The fact that a company which is a resident of one of the
territories has a subsidiary company which is a resident of the
other territory or which is engaged in trade or business in that
other territory (whether through a permanent establishment or
otherwise) shall not of itself constitute that subsidiary company a
permanent establishment of its parent company.
(2) Where under this Arrangement any income is exempt from
tax in one of the territories if (with or without other conditions)
it is subject to tax in the other territory, and that income is
subject to tax in that other territory by reference to the amount
thereof which is remitted to or received in that other territory,
the exemption to be allowed under this Arrangement in the
first-mentioned territory shall apply only to the amount so
remitted or received.
(3) In the application of the provisions of this Arrangement
by the United Kingdom or Grenada, any term not otherwise defined
shall, unless the context otherwise requires, have the meaning
which it has under the laws of the United Kingdom, or, as the case
may be, Grenada, relating to the taxes which are the subject of
this Arrangement.
