- (a) a business of a Contracting State participates directly or indirectly in the business management, control or capital of a enterprise of the other Contracting State or
- (b) the same persons participate directly or indirectly in the business management, control or capital of a business of a Contracting State and of a business of the other Contracting State,
and in these cases both businesses are bound by agreed-upon or imposed conditions in their commercial or financial relationships that deviate from those that would bind independent companies with each other, the gains that one of these businesses would have earned without these conditions but did not earn will be credited to the income of this business and taxed correspondingly.
(2) If, in a Contracting State, gains are attributed to a business of this State -and correspondingly taxed-with which a business of the other Contracting State has been taxed in this State, and these credited gains are such as the business of the first State mentioned would have earned if the conditions agreed upon between the two businesses were the same as those that independent businesses would agree upon, the other State will make appropriate changes in the tax levied there on these gains. In this change, the remaining provisions of this Convention must be taken into account; if necessary the responsible authorities in the Contracting States will consult each other.