- (a) an enterprise of one of the States participates directly or indirectly in the management, control or capital of an enterprise of the other State, or
- (b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of one of the States and an enterprise of the other State,
and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, any profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly.
(2) Where profits, in respect of which an enterprise of one of the States is subject to taxation in that State, are also included in the profits of an enterprise of the other State and taxed accordingly and these profits would have accrued to the enterprise of such other State if conditions had been made between the enterprises like those which would have been made between independent enterprises, the first-mentioned State shall adjust the amount accordingly to the tax levied in that State on the profits. In making such adjustment the other provisions of this Convention relating to the nature of the profits shall be taken into account and for that purpose the competent authorities of the States shall consult each other as necessary.