54 STAT.] SWEDEN-DOUBLE TAXATION-MAR . 23 , 1939 be exempt from taxation in the former State. No account shall be taken, in determining the tax in one of the contracting States, of the mere purchase of merchandise effected therein by an enterprise of the other State. The competent authorities of the two contracting States may lay down rules by agreement for the apportionment of industrial and commercial profits. Article III When an enterprise of one of the contracting States, by reason of its participation in the manage- ment or capital of an enterprise of the other contracting State, makes or imposes on the latter in their commercial or financial rela- tions conditions different from those which would be made with an independent enterprise, any profits which should normally have appeared in the balance sheet of the latter enterprise but which have been in this manner diverted to the former enterprise may, sub- ject to applicable measures of ap- peal, be incorporated in the tax- able profits of the latter enterprise. In such case consequent rectifica- tions may be made in the accounts of the former enterprise. Artice IV Income which an enterprise of one of the contracting States derives from the operation of ships or aircraft registered in that State is taxable only in the State in which registered. Income de- lunda beskattats av den senare staten, skall vara undantagen frAn beskattning i den forra staten. Vid faststillande av skatt i en av de avtalslutande staterna skall hansyn ej tagas till enbart inkop av varor, som dar verkstaillts av ett f6retag i den andra staten. Behoriga myndigheter i de bada avtalslutande staterna m& genom 6verenskommelse faststalla reg- ler for uppdelning av inkomster fran industri och handel. Artikel III Nar ett f6retag, hemmah6rande i en av de avtalslutande staterna, pa grund av sin delaktighet i led- ningen av ett i den andra staten hemmahorande foretag eller i ett sadant foretags kapital, i handels- eller andra ekonomiska forbindel- ser mellan foretagen tillampar eller bestAimmer andra villkor in dem, som skulle ha tillampats i forhallande till ett oberoende fore- tag, skola alla vinster, som nor- malt bort ing& i det senare f6re- tagets balansrakning, men som pa detta sitt 6verf6rts till det forra foretaget, kunna inraknas i det senare f6retagets beskatt- ningsbara inkomst, med msjlighet likval att begagna den klagoratt som mA sta till buds. I dylikt fall kan erforderlig justering vid- tagas i frAga om det f6rra fore- tagets inkomstberakning. Artikel IV Inkomst, som ett f6retag hem- mah6rande i en av de avtalslut- ande staterna erhiller genom uto- vande av verksamhet medelst darstades registrerade fartyg eller luftfartyg, skall beskattas endast Purchase of mer- chandise. Rules by agreement forapportionment. Interlocking man- agement or capital, taxable profits. Income from opera- tion of ships or air- craft. 1761
�
