The amending protocol was singed on 20/7/2020 and published in the Official Gazette of the Republic on 24/7/2020.
Under article 7 – Business profits – of the treaty, a time frame of 6 years is established during which one of the contracting states may adjust the profits attributable to a permanent establishment. No time frame exists in the case of fraud, gross negligence or willful default.
Under article 9 – Associated Enterprises- of the treaty where the profits of an enterprise of a contracting state are adjusted by one state whilst they had been taxed by the other state, a compensating adjustment must be carried out by the other state. The two states may need to consult on such an adjustment.
As under article 7, a time frame of 6 years is established except for fraud, gross negligence or willful default.
Under article 28- mutual agreement procedure- a person may appeal to the competent authority of any contacting state if he finds himself in a a position which is not in accordance with the provisions of the treaty.
A new article 28A – entitlement to benefits- has been added whereby if the principal purpose of a transaction is the securing of benefits under the treaty, these may be denied unless the transaction is in accordance with the object and purpose of the provisions of the treaty.
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