Article 1 the agreement between the Kingdom of Sweden and the Isle of Man
the mutual agreement procedure in connection with the adjustment of
profits of associated enterprises, signed
on October 30, 2007 to be valid as law in this country. The agreement is
drafted in English. The English text, as well as a Swedish
translation appears in annex to this law.
section 2 of the tax rules of the agreement shall apply only to the
some of these causes restriction of the tax liability in Sweden
that would otherwise exist.
Transitional provisions
2008:1302
1. this law shall enter into force on the day the Government determines.
2. this law shall apply to the taxes levied for
tax year that begins on 1 January of the year following
immediately following the year in which the law comes into force or later.
Annex
(Translation)
AGREEMENT BETWEEN THE KINGDOM OF SWEDEN AND THE ISLE OF MAN ON
THE ACCESS TO MUTUAL AGREEMENT PROCEDURES IN CONNECTION WITH
THE ADJUSTMENT OF PROFITS OF ASSOCIATED ENTERPRISES
The Government of the Kingdom of Sweden and the Government of
the Isle of Man, desiring to conclude an agreement on the
access to mutual agreement procedures in connection with the
adjustment of profits of associated enterprises, have agreed as
follows:
Article 1
Taxes covered
This Agreement shall apply to taxes on income and profits.
Article 2
Definition
1. For the purposes of this Agreement, unless the context
otherwise requires:
(a) the term "Party" means the Isle of Man or Sweden as the
context requires; the term "Parties" means the Isle of Man and
Sweden;
(b) the term "Sweden" means the Kingdom of Sweden and, when
used in a geographical sense, includes the national territory,
the territorial sea of Canada as well as other maritime areas
over which Sweden in accordance with international law
exercises sovereign rights or jurisdiction;
(c) the term "Isle of Man" means the island of the Isle of Man;
(d) the term "competent authority" means
(i) in the case of the Isle of Man, the Assessor of Income Tax
or his delegate;
(ii) in the case of Canada, the Minister of Finance, his
authorised representative or the authority which is designated
as a competent authority for the purposes of this Agreement.
2. As regards the application of this Agreement at any time by
a Party, any term not defined therein shall, unless the context
otherwise requires, have the meaning that it has at that time
under the law of that Party for the purposes of the taxes to
which the Agreement applies, any meaning under the applicable
tax laws of that Party prevailing over a meaning given to the
the term under other laws of that Party.
Article 3
Principles applying to the adjustment of profits of associated
enterprises
1. Where:
(a) an enterprise of a Party participates directly or
indirectly in the management, control or capital of an
Enterprise of the other Party, or
(b) the same persons participate directly or indirectly in the
management, control or capital of an enterprise of a Party and
an enterprise of the other Party,
and in either case conditions are made or imposed between the
the two enterprises in their commercial or financial relations
which differ from those which would be made between independent
enterprises, then 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 a Party includes in the profits of an enterprise of
that Party-and taxes accordingly-profits on which an
Enterprise of the other Party has been charged to tax in that
other Party and the profits so included are profits which would
have accrued to the enterprise of the first-mentioned Party if
the conditions made between the two enterprises had been those
which would have been made between independent enterprises,
then that other Party shall make an appropriate adjustment to
the amount of the tax charged therein on those profits. In
determining such adjustment, due regard shall be had to the
other provisions of this Agreement.
Article 4
General commissions
Where a Party intends to adjust the profits of an enterprise in
accordance with the principles set out in Article 3, it shall
in accordance with its laws inform the enterprise of the
intended action in due time and give it the opportunity to
inform the other enterprise so as to give that other enterprise
the opportunity to inform in turn the other Party. However, the
Party providing such information shall not be prevented from
making the proposed adjustment.
Article 5
Mutual agreement procedures
1. Where an enterprise considers that, in any case to which
This Agreement applies, the actions of one or both of the
Parties result or will result for it in double taxation, it
may, irrespective of the remedies provided by the domestic law
of the Party concerned, present its case to the competent
authority of the Party of which it is a resident. The case must
be presented within three years of the first notification of
the action which is contrary or is likely to be contrary to the
principles set out in Article 3. The competent authority shall
then without delay notify the competent authority of the other
Party.
2. The competent authority shall endeavour, if the objection
appears to it to be justified and if it is not itself able to
arrive at a satisfactory solution, to resolve the case by
mutual agreement with the competent authority of the other
Party, with a view to the avoidance of taxation which is not in
accordance with the Agreement. Any agreement reached shall be
implemented notwithstanding any time limits in the domestic law
of the Parties.
3. The competent authorities of the Parties shall endeavour to
resolve by mutual agreement any difficulties or doubts arising
as to the interpretation or application of the Agreement.
4. The competent authorities of the Parties may communicate
with each other directly for the purpose of reaching an
agreement in the sense of the preceding paragraphs.
Article 6
Entry into force
1. This Agreement shall enter into force on the thirtieth day
After the later of the dates on which each of the Parties has
notified the other in writing that the procedures required by
its law have been complied with. The Agreement shall have
effect on taxes chargeable for any tax year beginning on or
After the first day of January of the year next following that
in which this Agreement enters into force.
2. Notwithstanding paragraph 1 of this Article, this Agreement
shall only have effect when the Agreement signed on 30 October
2007 between the Kingdom of Sweden and the Isle of Man for the
Exchange of information relating to tax matters shall have
effect.
Article 7
Termination
1. This Agreement shall remain in force until terminated by a
Party. Either Party may terminate the Agreement by giving
written notice of termination at least six months before the
the end of any calendar year. In such event, the Agreement shall
cease to have effect on taxes chargeable for any tax year
beginning on or after the first day of January of the year next
following the end of the six months period.
2. Notwithstanding paragraph 1 of this Article, this Agreement
will be terminated, without giving notice of termination, on
the date of termination of the Agreement signed on 30 October
2007 between the Kingdom of Sweden and the Isle of Man for the
Exchange of information relating to tax matters.
In witness whereof the undersigned being duly authorised
thereto have signed this Agreement.
Done at Oslo, this Thirtieth day of October 2007, in duplicate
in the English language.
For the Government of the Kingdom of Sweden
Ingemar Hansson
For the Government of the Isle of Man
Allan Robert Bell
AGREEMENT BETWEEN THE KINGDOM OF SWEDEN AND THE ISLE OF MAN IF PROCEDURE
MUTUAL AGREEMENT IN CONNECTION WITH THE ADJUSTMENT OF PROFITS BETWEEN
ASSOCIATED ENTERPRISES
The Government of the Kingdom of Sweden and the Isle of Man Government, which
are to conclude an agreement on the procedure for the exchange of
agreement on the adjustment of profits of
Community of interests, have agreed as follows:
Article 1
Taxes covered by the agreement
This agreement shall apply to taxes on income.
Article 2
Definitions
1. Unless the context gives rise to different, have in the application
by this agreement the following expressions the following meaning:
a) "party" means the Isle of Man, or Sweden, depending on
context; "parties" means the Isle of Man and Sweden,
b) "Sweden" means the Kingdom of Sweden and the includes, when
the expression is used in the geographical sense, the territory of Sweden,
Sweden's territorial sea and other maritime areas over which the
Sweden, in conformity with international law, exercises
sovereign rights or jurisdiction;
(c)), "Isle of Man" means the island of the Isle of Man,
d) "competent authority" means:
1) in the Isle of Man: "the Assessor of Income Tax" or his
authorised representative,
2) in Sweden: the Minister of finance or his authorised representative
or authority to whom be entrusted to be competent
authority for the purposes of this agreement.
2. When a party applies the agreement at a particular time are considered,
unless the context gives rise to different, every expression
not defined in this agreement have the meaning the term has
at this time, according to the party's legislation in respect of
such taxes to which the agreement shall apply. The importance of the
the term has under the applicable tax laws of that party
prevail over the relevant term has under other
legislation of that party.
Article 3
Principles for the adjustment of profits of
Community of interest
1. In cases where the
(a)) of a party directly or indirectly involved in
management or control of a company in the other party
or owns part of the company's capital, or
(b)) the same person participates directly or indirectly in the management,
or control of an undertaking within a party that a company
in the other party or own some of both of these corporate
capital, observed the following.
If between businesses in terms of trade relations or
financial relations agreed upon or prescribed conditions, as
differ from those which would have been agreed between each other
independent company, receives all the income, that without such conditions
would have been one company but who, because of
the terms in question did not come about this company, be included in the
This company's income and taxed accordingly.
2. In cases where a party to the income of an enterprise of that party
include-and taxes accordingly-income,
for which a company of the other party is subject to tax in this
other party, as well as the ancillary income such as
would have established the company in the first-mentioned party if the
conditions agreed between the enterprises had been those which
would have been agreed between independent undertakings, the
This other party carry out proper adjustment of the
amount of tax levied on income. At this adjustment
observed the other provisions of this agreement.
Article 4
General provision
If a party intends to adjust a company's income in accordance
with the principles set out in article 3, it shall, in
compliance with its legislation in good time communicate
the company accordingly and give the company the opportunity to inform the
other company so that it may in turn inform the other
party. The party giving such notice is however
not able to carry out the intended adjustment.
Article 5
Mutual agreement
1. If a company believes that a party, or both parties, in a
cases covered by this agreement, took measures for the
the enterprise carries or will result in double taxation,
It may, without prejudice to its right to make use of
the remedies available in the internal legal system,
submit the matter to the competent authority of the party where the
It is a resident. The thing to be presented within three years from the
date on which the undertaking in question was aware of the measure that
violates or is likely to be adopted contrary to the principles
referred to in article 3. The competent authority shall then
without delay inform the competent authority of the other
party.
2. If the competent authority finds the complaint justified but
Unable to achieve a satisfactory solution,
authority search decide by mutual agreement
with the competent authority of the other party in order to
avoid taxation contrary to the agreement. Agreement
reached are implemented notwithstanding the time limits in the parties '
internal legislation.
3. the competent authorities of the Parties shall, by mutual
understanding search determine difficulty or doubt as
arise regarding the interpretation or application of the agreement.
4. the competent authorities of the parties may enter into direct
connected with each other in order to reach agreement in
the meaning of the previous paragraphs.
Article 6
Date of entry into force
1. This agreement shall enter into force on the thirtieth day following the
date of the last written notification-as
each Government should leave when the measures taken
required under their respective legislation, has been provided.
The agreement shall apply to taxes levied for fiscal years
beginning on January 1 of the year following the year after
This agreement enters into force or later.
2. Notwithstanding paragraph 1 of this article, this agreement
only applicable when the agreement between the Kingdom of Sweden and
The Isle of Man on the exchange of information in tax matters
signed on 30 October 2007.
Article 7
Termination
1. this Agreement shall remain in force until terminated by a
party. Either party may terminate the agreement by
notice to that effect at least six months before the expiry of any
calendar year. In the event of such termination, the agreement ceases to
apply in respect of tax charged for tax years beginning
on 1 January of the year immediately following the end of
the six-month period or later.
2. Notwithstanding paragraph 1 of this article, this agreement will terminate
to apply, without written notice of termination, on the date of the agreement between the
The Kingdom of Sweden and the Isle of Man for the exchange of information
in tax matters signed on 30 October 2007 ceases to
apply.
In witness whereof the undersigned, being duly
authorised, have signed this agreement.
Which took place in Oslo on 30 October 2007, in duplicate in the
English language.
For the Government of the Kingdom of Sweden
Ingemar Hansson
For the Government of the Isle of man
Allan Robert Bell
