Page:United States Statutes at Large Volume 60 Part 2.djvu/293

 60 STAT.] UNITED KINGDOM-DOUBLE TAXATION- Apr 16, 1945 June 6, 1946 (i) The term "United Kingdom enterprise" means an indus- trial or commercial enterprise or undertaking carried on by a resident of the United Kingdom. (j) The term "United States enterprise" means an industrial or commercial enterprise or undertaking carried on by a resident of the United States. (k) The terms "enterprise of one of the Contracting Parties" and "enterprise of the other Contracting Party" mean a United States enterprise or a United Kingdom enterprise, as the context requires. (1) The term "permanent establishment" when used with respect to an enterprise of one of the Contracting Parties means a branch, management, factory or other fixed place of business, but does not include an agency unless the agent has, and habitually exercises, a general authority to negotiate and conclude contracts on behalf of such enterprise or has a stock of merchandise from which he regu- larly fills orders on its behalf. An enterprise of one of the Contracting Parties shall not be deemed to have a permanent establishment in the territory of the other Contracting Party merely because it carries on business dealings in the territory of such other Contracting Party through a bona fide commission agent, broker or custodian acting in the ordinary course of his business as such. The fact that an enterprise of one of the Contracting Parties main- tains in the territory of the other Contracting Party a fixed place of business exclusively for the purchase of goods or merchandise shall not of itself constitute such fixed place of business a permanent establishment of such enterprise. The fact that a corporation of one Contracting Party has a subsidiary corporation which is a corporation of the other Contracting Party or which is engaged in trade or business in the territory of such other Contracting Party (whether through a permanent establishment or otherwise) shall not of itself constitute that subsidiary cor- poration a permanent establishment of its parent corpo- ration. (2) For the purposes of Articles VI, VII, VIII, IX and XIV a resi- dent of the United Kingdom shall not be deemed to be engaged in trade or business in the United States in any taxable year unless such resident has a permanent establishment situated therein in such taxable year. The same principle shall be applied, mutatis mutandis, by the United Kingdom in the case of a resident of the United States. (3) In the application of the provisions of the present Convention by one of the Contracting Parties any term not otherwise defined shall, unless the context otherwise requires, have the meaning which it has under the laws of that Contracting Party relating to the taxes which are the subject of the present Convention. 1379 " United Kingdom enterprise." " United States en- terprise." "Enterprise of one of the Contracting Parties. " "Permanent estab- lishment. " Pa, pp. 1381,1382, 1384.

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