A Laws.Africa project
31 May 1956

Kenya Government Gazette dated 1956-05-31 number 24

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         Published under the Authority of His Excellency the Governor of the Colony and Protectorate of Kenya

 Vol. LVUI—No. 24                                  NAIROBI, 31st May, 1956                                             Price 50 Cents

 Gazette Notice No. 1651                                                    (f) The terms “resident of the United Kingdom” and “resident
                                                                                 of Canada” mean respectively any person who is ‘resident
  THE EAST AFRICAN INCOME TAX (MANAGEMENT)                                       in the United Kingdom for the purposes of United
                   ACT, 1952                                                     Kingdom tax-and not resident in Canada for the purposes
                      (H.C. Act No. 8 of. 1952)                                  of Canadian tax and any person who is resident in
                                                                                 Canada for the purposes: of Canadian tax. and not resident
   Notice OF ProposaLts FoR DousLe TAXaTION AGREEMENT                            in the United Kingdom for the purposes of United
                /        (GanaDa)                                                Kingdom tax; and a company shall be regarded as
                                                                                 residcat in the United, Kingdom if its. business is
   THE following is a:.draft of an agreement which it is pro-
                                                                                 managed and controlled in the United Kingdom and as
 posed to enter into with Canada for the relief of Double                        resident in Canada if its business is managed and con-
 Taxation. The Agreement will be made by extending to Kenya                      trolled in Canada.
the provisions of the Double Taxation Agreement between the
 United Kingdom and Canada, which is reproduced below. The                  (g) The terms “‘resident of one of the territories” and“resident
 Agreement will be-extended subject to the modifications con-                    of the other territory’ mean a person who is a resident
 tained in the Notification set out thereafter, which Her Majesty’s              of the United Kingdom or a person who is.a resident —
 Government will give to the Government of Canada and which                      of Canada, as the context requires.
-will bring the Agreement into effect.                   :
                                                                            (A) The terms “United. Kingdom enterprise”’ and “Canadian
 AGREEMENT BETWEEN THE GOVERNMENT OF THE UNITED                                  enterprise’ mean respectively an industrial or. commercial
    KINGDOM AND THE GOVERNMENT OF CANADA FOR THE                                 enterprise or undertaking carried on bya resident of the’
    AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF                           United Kingdom and an industrial or commercial enter-
     FiscaL Evasion Wit RESPEcr TO TAXES ON INCOME.                   .        _ Prise or undertaking carried on by a resident of Canada;
                                                                                 and the terms “enterprise of one of the territories” and
   The Government of the United Kingdom of Great Britain and                     “enterprise of the other. territory’ mean a’. United
 Northern Ireland and the Government of Canada, desiring to                      Kingdom enterprise or a Canadian enterprise, as the con-
 conclude an agreement for the avoidance of double taxation                      ‘text requires.                          On
 and the prevention of fiscal evasion with respect to taxes on
“income, have agreed as follows :—                                          @) The term “permanent establishment”, when used with
                                                                                respect to an enterprise of one of the: territories, means
                              Article I                                         a branch or other fixed place of business,. but does not
                                                                                include an agency unless the agent has, and habitually
   (1) The taxes which are the subject. of the present Agreement                exercises, a general authority to negotiate and conclude
        are—                                                                     contractg, ee gehalt of sublf enterprise or has a stock of
   (a) In Canada:                      .                                        merchandi       om whidhfhp regularly fills orders on its
          The income taxes, including sur-taxes, and excess profits             behalf.                                  oe
        tax imposed by Canada (hereinafter referred to as                         An enterprise of one of the territories shall not be
        “Canadian tax’’).                .         .                            deemed to have a permanent establishment in the other
   (b) In the United Kingdom:                                                   territory merely because it carries on business dealings in
                                                                                that other territory through a bona fide broker or general
          The income tax (including sur-tax), the excess. profits               commission agent acting in the ordinary course of| his
        tax and the national defence contribution (hereinafter                  business as such.
        referred to as “United Kingdom tax’’).                                                                                      ,
   (2) The present Agreement shall also apply to any other taxes                   The fact that an enterprise of one. of. theterritories
 of a substantially similar character imposed by either Contract-               maintains in the other territory a fixed place of. business
 ing Government subsequently to the date of signature of the                    exclusively for the purchase of goods or. merchandise
 present Agreement. or by the Government of any territory to                    shall not. of itself constitute that fixed place of business
 which the present Agreement is extended under Article XV.                      a permanent establishment of the enterprise.
                                                                                  The fact that a company which is ‘a resident of one
                                                                                of the territories has a subsidiary company which is. a
                            Article HT”                                         resident of the other territory or which. is engaged in
   @) In the present Agreement, unless the context otherwise                    trade or business in that other territory (whether through .
 requires—                                                                      a permanent establishment or otherwise) shall not of itself
   (a) The term “United Kingdom” means Great: Britain and                       constitute that subsidiary company a permanent estab-
        Northern Ireland, exchiding the Channel Islands and the                  lishment of its parent company.       :    ,   Bos
       Isle of Man.               .                   ,                     (2) The term “industrial or commercial profits’, as used in
   (6) The terms “one ofthe territories” and “the other territory”        the present Agreement, does not include income in the form of
        mean the United Kingdom or Canada, as the context                 dividends, interest, rents or royalties, management charges, or
        requires,                 ‘                                       remuneration for labour or personal services.
   (c) The term “tax” means United Kingdom tax or Canadian                  (3) In the application of the provisions of the present Agree-
        tax, as the context requires.                    :                ment by one of the Contracting Governments any term not
   (d) The term “person” includes any body of persons, corporate          otherwise defined shall, unless the context otherwise requires,
        or not corporate.                                                 have the meaning which jit has under the laws of that .Contract-
                                                                          ing Government relating to the taxes which are the subject
   (e) The term “company” includes any body corporate.                                                                                  of
                                                                          the present’ Agreement.                        Cs
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