Document ID: chunk:federal_register_of_legislation:C2004A01208:clause:1_4:p17
Version: federal_register_of_legislation:C2004A01208
Segment Type: clause
Provision Reference: sch 1 cl 4 (pt 17/22)
Character Range: 74950–77731

14 (Income from employment),

the Contracting States agree that:

   (a) income or gains derived by employees in relation to share option schemes shall be treated as "other similar remuneration" for the purposes of Article 14;

   (b) unless the facts otherwise indicate, the period of employment to which the option relates shall be taken to be the period between the grant of the option and the date on which all the conditions for its exercise have been satisfied (the vesting of the option); and

   (c) where a resident of a Contracting State derives such income or gains, and

       (i) the period of employment to which the share option relates is the period between grant and vesting of the option;

       (ii) the employee remains in that employment at the date of alienation or exercise of the option; and

       (iii) that employment has been exercised by the employee in the other Contracting State during all or part of the period between grant and vesting of the option;

   the proportion of the income or gain which shall be attributable to employment exercised in the other Contracting State shall be determined in accordance with the ratio of the number of days of employment exercised in that State between grant and vesting of the option to the total number of days of employment exercised between grant and vesting of the option.

9. With reference to Article 25 (Non‑discrimination),

the Contracting States agree that:

    (a) in relation to paragraph 4 and subparagraph 6(c) of the Article, the reference to capital being owned or controlled "directly or indirectly" includes cases where the capital is held through a chain of companies or other entities; and

    (b) nothing in the Article shall be construed as obliging a Contracting State to allow tax rebates and credits in relation to dividends received by a person who is a resident of the other Contracting State.

10. With reference to Article 26 (Mutual agreement procedure) and Article 27 (Exchange of information),

the Contracting States agree that the provisions of the Articles shall have effect from the date of entry into force of the Convention, without regard to the date of the relevant transactions or the taxable or chargeable period to which the matter relates.

11. With reference to Article 26 (Mutual agreement procedure),

the Contracting States agree that in relation to paragraph 1 of the Article, the applicable time limits in the domestic laws bearing on the time available for presenting a case to the relevant competent authority shall apply, whether or not those applicable time limits specifically refer to the competent authority process.

12. Miscellaneous

The Contracting States agree that the two Governments shall consult each other at intervals of not more than