Document ID: chunk:federal_register_of_legislation:C2007A00136:schedule:23:p5
Version: federal_register_of_legislation:C2007A00136
Segment Type: schedule
Provision Reference: sch 23 (pt 5/27)
Character Range: 84741–87642

than six months; or

         (b) it furnishes services, including consultancy services, for the same or a connected project, through its employees or other personnel engaged for such purposes, within a Contracting State for a period or periods aggregating more than six months within any twelve month period; or

         (c) it maintains substantial equipment for rental or other purposes within that other State (excluding equipment let under a hire‑purchase agreement) for more than six months; or

         (d) a person acting in a Contracting State on behalf of an enterprise of the other Contracting State manufactures or processes in the first‑mentioned State for the enterprise goods or merchandise belonging to the enterprise.

         4 (a) The duration of activities under subparagraph 3(a) will be determined by aggregating the periods during which activities are carried on in a Contracting State by associated enterprises provided that the activities of the enterprise in that State are substantially the same as the activities carried on in that State by its associate.

         (b) The period during which two or more associated enterprises are carrying on concurrent activities will be counted only once for the purpose of determining the duration of activities.

         (c) Under this Article, an enterprise shall be deemed to be associated with another enterprise if:

              (i) one is controlled directly or indirectly by the other; or

              (ii) both are controlled directly or indirectly by the same third person or persons.

5 Notwithstanding the preceding provisions of this Article, an enterprise shall not be deemed to have a permanent establishment merely by reason of:

(a) the use of facilities solely for the purpose of storage or display of goods or merchandise belonging to the enterprise; or

(b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage or display; or

(c) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise; or

(d) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise, or for collecting information, for the enterprise; or

(e) the maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any other activity of a preparatory or auxiliary character.

6 Notwithstanding the provisions of paragraphs 1 and 2, where a person—other than an agent of an independent status to whom paragraph 7 applies—is acting on behalf of an enterprise and has, and habitually exercises, in a Contracting State an authority to conclude contracts on behalf of the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect of any activities which that person