TaxTMI 
TaxTMI 
Limitation of Benefits
X X X X Extracts X X X X
X X X X Extracts X X X X
....is either: a) Governmental entity; or b) a company incorporated in either of the Contracting States, if- (i) the principal class of its shares is listed on a recognised stock exchange as defined in paragraph 5 of this Article and is regularly traded on one or more recognised stock exchanges; or (ii) at least 50 per cent of the aggregate vote or value of the shares in the company is owned directly or indirectly by one or more individuals' residents of either of the Contracting States or/and by other persons incorporated in either of the Contracting States, at least 50 per cent of the aggregate vote or value of the shares or beneficial interest of which is owned directly or indirectly by one or more individ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tracting State will be entitled to benefits of the Agreement with respect to an item of income derived from the other Contracting State, if the person actively carries on business in the State of residence (other than the business of making or managing investments for the resident's own account unless these activities are banking, insurance or security activities) and the income derived from the other Contracting States is derived in connection with or is incidental to that business and that resident satisfies the other conditions of this Agreement for the obtaining of such benefits. 4. A resident of a Contracting State shall nevertheless be granted the benefits of the Agreement if the competent authority of the other Contracting Sta....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... time that the benefit would be accorded. Paragraph 9 of Article 7 of the MLI A resident of a [Contracting State] to [the Agreement] shall be a qualified person at a time whenc a benefit would otherwise be accorded by [the Agreement] if, at that time, the resident is: a) an individual; b) that [Contracting State], or a political subdivision or local authority thereof, or an agency or instrumentality of any such [Contracting State], political subdivision or local authority; c) a company or other entity, if the principal class of its shares is regularly traded on one or more recognised stock exchanges; d) a person, other than an individual, that: i) is a non-profit organisation of a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....and the income derived from the other [Contracting State] emanates from, or is incidental to, that business. For purposes of the Simplified Limitation on Benefits Provision, the term "active conduct of a business" shall not include the following activities or any combination thereof: i) operating as a holding company; ii) providing overall supervision or administration of a group of companies; iii) providing group financing (including cash pooling); or iv) making or managing investments, unless these activities are carried on by a bank, insurance company or registered securities dealer in the ordinary course of its business as such. b) If a resident of a [Contracting State] derives an item of inc....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sident. Paragraph 12 of Article 7 of the MLI If a resident of a [Contracting State] is neither a qualified person pursuant to the provisions of paragraph 9 [of Article 7 of the MLI], nor entitled to benefits under paragraph 10 or 11 [of Article 7 of the MLI], the competent authority of the other [Contracting State] may, nevertheless, grant the benefits of [the Agreement], or benefits with respect to a specific item of income, taking int account the object and purpose of [the Agreement], but only if such resident demonstrates to the satisfaction of such competent authority that neither its establishment, acquisition or maintenance, nor the conduct of its operations, had as one of its principal purposes the obtaining of benefits u....
X X X X Extracts X X X X
X X X X Extracts X X X X
....with respect to dividends, the person shall be deemed to hold the same capital of the company paying the dividends as such capital the company claiming the benefit with respect to the dividends holds; d) with respect to entities that are not companies, the term "shares" means interests that are comparable to shares; e) two persons shall be "connected persons" if one owns, directly or indirectly, at least 50 per cent of the beneficial interest in the other (or, in the case of a company, at least 50 per cent of the aggregate vote and value of the company's shares) or another person owns, directly or indirectly, at least 50 per cent of the beneficial interest (or, in the case of a company, at least 50 per cent of the aggr....