- 1
- A person which is a resident of a Contracting State and which derives income from sources within the other Contracting State shall not be entitled, in that other State, to the benefits of Article 6 through Article 24 of this Convention if:
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- a.the person is a company entitled to any special Netherlands Antilles tax benefits (currently Article 14 or Article 14A of the Netherlands Antilles National Ordinance on Profit Tax of 1940), in force on the date of signature of this Convention or any substantially similar tax benefits granted under any law of the Netherlands Antilles enacted after that date in addition to, or in place of, the Articles 14 or 14A mentioned above; or
- b.the person deriving the income is a Netherlands Antilles company and which does not have in the Netherlands Antilles a genuine business purpose; or
- c.less than 50 percent of the beneficial interest in such person (or in the case of a company, each class of the company's voting shares) is owned, directly or indirectly, by any combination of one or more individuals resident in a Contracting State.This sub-paragraph shall not apply if the income derived from the other Contracting State is derived in connection with a genuine business purpose in the first-mentioned State, or if the person deriving the income is a company which is a resident of a Contracting State in whose principal class of shares there is a substantial and regular trading on a recognised stock exchange or which is directly or indirectly wholly owned by a company in whose principal class of shares there is a substantial and regular trading on a recognised stock exchange. For the purpose of this provision in administering the "substantially and regularly traded" requirement there shall be a presumption that the stock in a company listed on a recognised stock exchange is substantially and regularly traded. The presumption may be rebutted by evidence to the contrary.
- d.in sub-paragraphs b. and c. the engaging in international finance through the issuance of public loans shall be considered a genuine business purpose in the Netherlands Antilles.
- 2
- For the purpose of paragraph 1 the following stock exchanges are recognised:
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- a.Oslo Børs
- b.Amsterdamse Effecten Beurs
- c.New York Stock Exchange
- d.London Stock Exchange
- e.Tokyo Stock Exchange
- f.Paris Stock Exchange
- g.Frankfurt Stock Exchange
- h.Milano Stock Exchange
- i.Any other Stock Exchange pursuant to mutual agreement by the competent authorities of the Contracting States consistent with the purpose of this article.
