- (a) an enterprise of a Contracting State directly or indirectly participates in the management, control or capital of an enterprise of the other Contracting State, or
- (b) the same persons directly or indirectly participate in the management, control or capital of an enterprise of a Contracting State,
and an enterprise of the other Contracting State, and in either case conditions are agreed upon or imposed between the two enterprises with regard to their commercial or financial relations that differ from those that independent enterprises would have agreed upon, then in that case any profit that would have accrued with an enterprise, but was not able to due to these conditions, will be included in the profits of that enterprise and taxed accordingly.
(2) When a Contracting State includes in the profits of an enterprise of that State-and consequently taxes-profits on which an enterprise of the other Contracting State was taxed in that other State, and which the taxes thus included are profits which would have accrued to the enterprise of the first-mentioned State if the conditions made between the two enterprises had been those which would have been made between independent enterprises, then that other State shall make an appropriate adjustment to the amount of the tax charged therein on those profits if it deems that this adjustment is justified. To determine this adjustment, other provisions of this Convention are taken into account and, if necessary, the competent authorities of the Contracting States shall consult each other.