Law (2008:1302) If Agreement Between Sweden And The Isle Of Man On The Mutual Agreement Procedure In Connection With The Adjustment Of Profits Of Associated Enterprises

Original Language Title: Lag (2008:1302) om avtal mellan Sverige och Isle of Man om förfarande för ömsesidig överenskommelse vid justering av inkomst mellan företag i intressegemenskap

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Read the untranslated law here: http://rkrattsbaser.gov.se/sfst?bet=2008:1302

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