(1) Subject to the provisions of the law of the United Kingdom regarding the allowance as a credit against United Kingdom tax of tax payable in a territory outside the United Kingdom (which shall not affect the general principle hereof):
(a) Fiji tax payable under the laws of Fiji and in accordance with this Convention, whether directly or by deduction, on profits, income or chargeable gains from sources within Fiji (excluding in the case of a dividend, tax payable in respect of the profits out of which the dividend is paid) shall be allowed as a credit against any United Kingdom tax computed by reference to the same profits, income or chargeable gains by reference to which the Fiji tax is computed;
(b) in the case of a dividend paid by a company which is a resident of Fiji to a company which is a resident of the United Kingdom and which controls directly or indirectly at least 10 per cent of the voting power in the company paying the dividend, the credit shall take into account (in addition to any Fiji tax for which credit may be allowed under the provisions of sub-paragraph (a) of this paragraph) the Fiji tax payable by the company in respect of the profits out of which such dividend is paid.
(2) For the purposes of paragraph (1) of this Article, the term `Fiji tax payable` shall be deemed to include any amount which would have been payable as Fiji tax for any year but for an exemption or reduction of tax granted for that year or any part thereof under-
(a) any of the following provisions, that is to say-
section 16(2)(a) and section 16(2)(b) of the Income Tax Act 1974;
section 8(1) of the Hotels Aid Ordinance 1964;
section 9(3)(h) of the Income Tax Act 1974 provided that relief is given for the same taxable year under either section 16(2)(a) or section 16(2)(b) of the Income Tax Act 1974 or section 8(1) of the Hotels Aid Ordinance 1964;
so far as they were in force on, and have not been modified since, the date of the signature of this Convention, or have been modified only in minor respects so as not to affect their general character; or
(b) any other provision which may subsequently be made granting an exemption or reduction which is agreed by the competent authorities of the Contracting States to be of a substantially similar character, if it has not been modified thereafter or has been modified only in minor respects so as not to affect its general character.
Provided that relief from United Kingdom tax shall not be given by virtue of this paragraph in respect of income from any source if the income arises in a period starting more than ten years after the exemption from, or reduction of, Fiji tax was first granted in respect of that source.
(3) Subject to the provisions of the law of Fiji regarding the allowance as a credit against Fiji tax of tax payable in a territory outside Fiji (which shall not affect the general principle thereof}
(a) United Kingdom tax payable under the laws of the United Kingdom and in accordance with this Convention, whether directly or by deduction, on profits, income or chargeable gains from sources within the United Kingdom (excluding in the case of a dividend, tax payable in respect of the profits out of which the dividend is paid) shall be allowed as a credit against any Fiji tax computed by reference to the same profits, income or chargeable gains by reference to which the United Kingdom tax is computed;
(b) in the case of a dividend paid by a company which is a resident of the United Kingdom to a company which is a resident of Fiji and which controls directly or indirectly at least 10 per cent of the voting power in the United Kingdom company, the credit shall take into account (in addition to any United Kingdom tax for which credit may be allowed under the provisions of sub-paragraph (a) of this paragraph) the United Kingdom tax payable by the company in respect of the profits out of which such dividend is paid.
(4) For the purposes of paragraphs (1) and (3) of this Article
profits, income and capital gains owned by a resident of a
Contracting State which may be taxed in the other Contracting State
in accordance with this Convention shall be deemed to arise from
sources in that other Contracting State.
(5) Where profits on which an enterprise of a Contracting
State has been charged to tax in that State are also included in
the profits of an enterprise of the other State and the profits so
included are profits which would have accrued to that enterprise of
the other State if the conditions made between the enterprises had
been those which would have been made between independent
enterprises dealing at arm's length, the amount included in the
profits of both enterprises shall be treated for the purposes of
this Article as income from a source in the other State of the
enterprise of the first-mentioned State and relief shall be given
accordingly under the provisions of paragraph (1) or paragraph (3)
of this Article.
