Page:United States Statutes at Large Volume 49 Part 2.djvu/1131

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DOUBLE TAXATION. FRANCE. APRIL 27,1932. 3147 conditions different from t.hose which would be made with a third enterprise, any profits which should nonnally have appeared in the balance sheet of the French enterprise, but which have been, in this manner, diverted to the American enterprise, are, subject to the meusures of appeal appli- cable in the case of the tax on industrial and commcrcinl profits, incorporated in the taxable profits of the French enterprise. The same principle applies mutatis mutandis, in the event th!lt profits are diverted from an American ent~rprise to a French enterprise - ARTICLE V. ~\merican corporations which maintain in France permanent establishments may, in deroga- tion of Article 3 of the Decree of December 6, 1872, elect to pay the tax on income from securities on three-fourths of the profits actually derived from such estab- lishments, the industrial and com- mercial profits being detennined in accordance with Article 1. An American corporation which wishes to place itself under the regime of the preceding paragraph must make a declaration to that effect at the Bureau of Registra- tion within six months after the date upon which this Agreement becomes effective or within six months after the creation of its establishment in France. The election made for one establish- ment applies to all the establish- ments of such corporation. Any such election is irrevocable. ARTICLE VI An American corporation shall not be subject to the obligations prescribed by Article 3 of the Decree of December 6, 1872, by reason of any participation in the management or in the capital of, or any other relations with, a French corporation, if such Ameri- can corporation and French cor- poration confonn to the require- des conditions differentes de cel- les qui seraient faites a une tierce entreprise, tous benefices qui auraient dft nonnalement ap- paraitre au bilan de l'entreprise franCiaise, mais qui ont ete, de la sorte, transferes a l'entreprise americaine, sont, sous reserye des recours applicables en ma- tiere d'impot sur les benefices in- dustriels et commerciaux, incor- pores aux benefices imposables de l'entreprise franCiaise. Le meme principe s'applique Aml'rican enterp~ise • • ' by 8 1- I'en{'h enterprise. mutatIS mutandIS, lorsque des benefices sont transferes d'une entreprise americaine a une entre- prise frtUlCiaise. ARTICLE Y Les societes amcricaines 9.ui Ta~ .nn income from secuntles. possedent en France des etabhs- sements stables ont, par deroga- tion a l'article 3 du decret du 6 decembre 1872, la faculte d'ac- quitter l'impot sur Ie revenu des valeurs mobilieres sur les trois quarts des benefices effectivement retires de ces etablissements, les benefices industriels et commer- ciaux etant determines en confor- mite des dispositions de l'article IeI'. U ne societe americaine qui "Veut se placer sous Ie regime prevu a l'alinea qui precede doit en faire la declaration au bureau de l'enre- gistrement dans les six mois de l'entree en vigueur du present accord ou dans les six mois qui suivent la creation par elle d'un etablissement en France. L'op- tion faite pour un etablissement vaut pour tous les etablissements de la meme societe; elle est irrevocable. ARTICLE VI U ne societe americaine ne sera Obli~tions waived it • • •• confonmng to present pas aSSUjettle aux preScnptlOns requirements. ae l'article 3 du decret du 6 decembre 1872 en raison d'une participation dans la gestion ou dans Ie capital ou acause de toute autre relation avec une societe franQaise, si lesdites societe ameri- caine et societe fran9aise se con- fonnent aux dispositIOns du pre-