S.L. 123.17 ст. 2Arrangements to have effect. WITH The to conclude an fiscal evasion follows: This Contracting (1) This behalf of each (2) There on total income, taxes on gains total amounts of appreciation. (3) The (a) in the (b) in the (4) The taxes and to Agreement in shall notify respective the territory of whic

It is hereby declared -

(a) that the arrangements specified in the Agreement set out in the Schedule to this Order have been made with the Government of Canada with a view to affording relief from double taxation in relation to the following taxes imposed by the laws of Canada: the income taxes imposed by the Government of Canada (hereinafter referred to as "Canadian tax");

(b) that it is expedient that those arrangements should have effect. THE REPUBLIC OF MALTA AND CANADA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION RESPECT TO TAXES ON INCOME AND ON CAPITAL

Government of the Republic of Malta and the Government of Canada desiring Agreement for the avoidance of double taxation and the prevention of with respect to taxes on income and on capital, have agreed as

I. Scope of the Agreement

ARTICLE 1

Personal Scope

Agreement shall apply to persons who are residents of one or both of the States.

ARTICLE 2

Taxes Covered Agreement shall apply to taxes on income and on capital imposed on Contracting State, irrespective of the manner in which they are levied. shall be regarded as taxes on income and on capital all taxes imposed on total capital, or on elements of income or of capital, including from the alienation of movable or immovable property, taxes on the wages or salaries paid by enterprises, as well as taxes on capital existing taxes to which the Agreement shall apply are, in particular: the case of Canada: income taxes imposed by the Government of Canada, (hereinafter referred to as "Canadian Tax"); the case of Malta: income tax, including prepayments of tax whether made by deduction at source or otherwise, (hereinafter referred to as "Malta tax").

Agreement shall apply also to any identical or substantially similar taxes on capital which are imposed after the date of signature of the addition to, or in place of, the existing taxes. The Contracting States each other of significant changes which have been made in their taxation laws.

(1) In this Agreement, unless the context otherwise requires:

(a) (i) the term "Canada" used in a geographical sense, means Canada, including any area beyond the territorial seas of Canada laws of Canada, is an area within which Canada may exercise rights the sea-bed and subsoil and their natural resources;

(ii) the term "Malta" means the Republic of Malta and geographical sense, the term "Malta" means the Island of Malta, the and the other islands of the Maltese archipelago, including the thereof, and any area outside the territorial sea of Malta which, in international law, has been or may hereafter be designated, under concerning the Continental Shelf, as an area within which the rights respect to the seabed and subsoil and their natural resources may be

(b) the terms "a Contracting State" and "the other Contracting the context requires, Canada or Malta;

(c) the term "person" includes an individual, an estate, a trust, partnership and any other body of persons;

(d) the term "company" means any body corporate or any entity as a body corporate for tax purposes; in French, the term "societe" "corporation" within the meaning of Canadian law;

(e) the terms "enterprise of a Contracting State" and "enterprise Contracting State" mean respectively an enterprise carried on by Contracting State and an enterprise carried on by a resident of the State;

(f) the term "competent authority" means:

(i) in the case of Canada, the Minister of National authorized representative,

(ii) in the case of Malta, the Minister responsible for authorised representative;

(g) the term "international traffic" means any transport by a operated by an enterprise of a Contracting State, except when the operated solely between places in the other Contracting State;

(h) the term "national" means:

(i) in the case of Canada, any individual possessing the Canada and any legal person, partnership and association status as such from the laws in force in Canada;

(ii) in the case of Malta, any citizen of Malta as provided of the Constitution of Malta and in the Maltese Citizenship legal person, partnership and association deriving its status the law in force in Malta.

(2) As regards the application of the Agreement by a Contracting not defined therein shall, unless the context otherwise requires, have which it has under the law of that State concerning the taxes to which applies. person who, under the laws of that State, is liable to tax therein by domicile, residence, place of management or any other criterion of a by reason of the provisions of paragraph (1) an individual is a Contracting States, then his status shall be determined as follows:

shall be deemed to be a resident of the State in which he has a permanent home available to him; if he has a permanent home available him in both States, he shall be deemed to be a resident of the State which his personal and economic relations are closer (centre of interests); the State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either State, he shall be deemed to be a resident of the State in which he has an habitual abode; has an habitual abode in both States or in neither of them, he shall deemed to be a resident of the State of which he is a national; is a national of both States or of neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement.

by reason of the provisions of paragraph (1) a person other than an resident of both Contracting States, the competent authorities of the States shall endeavour to settle the question by mutual agreement having particular to its place of effective management, the place where it is otherwise constituted and any other relevant factors. In the absence agreement, such person shall be deemed not to be a resident of either for the purposes of Articles 6 to 22 inclusive and Article 24.

ARTICLE 5

Permanent Establishments purposes of this Agreement, the term "permanent establishment" place of business through which the business of an enterprise is carried on. "permanent establishment" includes especially: place of management; branch; office; factory; workshop; and mine, an oil or gas well, a quarry or any other place of extraction of natural resources. building site or construction or installation project, or an installation or ship used for the exploration or development of natural resources, or

(4) Notwithstanding the preceding provisions of this Article, "permanent establishment" shall be deemed not to include:

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

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

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

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

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

(f) the maintenance of a fixed place of business solely for of activities mentioned in sub-paragraphs (a) to (e) overall activity of the fixed place of business resulting combination is of a preparatory or auxiliary character.

(5) Notwithstanding the provisions of paragraphs (1) and (2), other than an agent of an independent status to whom paragraph acting on behalf of an enterprise and has, and habitually exercises State an authority to conclude contracts in the name of the enterprise, shall be deemed to have a permanent establishment in that State activities which that person undertakes for the enterprise, unless such person are limited to those mentioned in paragraph (4) which, through a fixed place of business, would not make this fixed place permanent establishment under the provisions of that paragraph.

(6) An enterprise shall not be deemed to have a permanent establishment Contracting State merely because it carries on business in that broker, general commission agent or any other agent of an independent provided that such persons are acting in the ordinary course of their

(7) The fact that a company which is a resident of a Contracting or is controlled by a company which is a resident of the other Contracting which carries on business in that other State (whether through establishment or otherwise), shall not of itself constitute either permanent establishment of the other.

III. Taxation of Income

ARTICLE 6

Income from Immovable Property

(1) Income derived by a resident of a Contracting State property situated in the other Contracting State may be taxed in that

(2) For the purposes of this Agreement, the term "immovable payments as consideration for the working of, or the right to work, sources and other natural resources; ships, boats and aircraft shall as immovable property. provisions of paragraph (1) shall apply to income derived from the letting, or use in any other form of immovable property and to profits or alienation of such property. provisions of paragraphs (1) and (3) shall also apply to the income from property of an enterprise and to income from immovable property used performance of independent personal services.

ARTICLE 7

Business Profits profits of an enterprise of a Contracting State shall be taxable only in the enterprise carries on business in the other Contracting State permanent establishment situated therein. If the enterprise carries on or business as aforesaid, the profits of the enterprise may be taxed in the t only so much of them as is attributable to that permanent to the provisions of paragraph (3), where an enterprise of a State carries on business in the other Contracting State through a establishment situated therein, there shall in each Contracting State be that permanent establishment the profits which it might be expected to a distinct and separate enterprise engaged in the same or similar the same or similar conditions and dealing wholly independently enterprise of which it is a permanent establishment. determination of the profits of a permanent establishment, there shall deductible expenses which are incurred for the purposes of the establishment including executive and general administrative expenses, in the State in which the permanent establishment is situated or as it has been customary in a Contracting State to determine the attributed to a permanent establishment on the basis of an of the total profits of the enterprise to its various parts, nothing in shall preclude that Contracting State from determining the profits to be apportionment as may be customary. The method of apportionment however, be such that the result shall be in accordance with the contained in this Article. profits shall be attributed to a permanent establishment by reason of the by that permanent establishment of goods or merchandise for the purpose of the preceding paragraphs, the profits to be attributed to establishment shall be determined by the same method year by year good and sufficient reason to the contrary.

provisions of this Article shall not affect the provisions of the law of a State regarding the taxation of profits from the business of insurance ARTICLE 8

Shipping and Air Transport

(1) Profits derived by an enterprise of a Contracting State from ships or aircraft in international traffic shall be taxable only in that

(2) For the purposes of this Article, profits from the operation traffic of ships or aircraft include profits derived from the rental on basis of ships or aircraft if operated in international traffic by the rental profits are incidental to other profits described in paragraph

(3) Profits of an enterprise of a Contracting State from the use, rental of containers (including trailers, barges and related equipment transport of containers) used for the transport in international traffic merchandise shall be taxable only in that State.

(4) Notwithstanding the provisions of paragraphs (1), (2) and profits derived from the operation of ships or aircraft used principally passengers or goods exclusively between places in a Contracting State in that State.

(5) The provisions of paragraphs (1), (3) and (4) shall also referred to in those paragraphs derived by an enterprise of a Contracting its participation in a pool, a joint business or an international operating

ARTICLE 9

Associated Enterprises

(1) Where -

(a) an enterprise of a Contracting State participates directly the management, control or capital of an enterprise Contracting State, or

(b) the same persons participate directly or indirectly in control or capital of an enterprise of a Contracting enterprise of the other Contracting State, and in either case conditions are made or imposed between the two their commercial or financial relations which differ from those which between independent enterprises, then any profits which would, conditions, have accrued to one of the enterprises, but, by reason of have not accrued, may be included in the profits of that enterprise accordingly.

(2) Where a Contracting State includes in the profits of an State - and taxes accordingly- profits on which an enterprise of the State has been charged to tax in that other State and the profits profits which would have accrued to the enterprise of the first-mentioned conditions made between the two enterprises had been those which made between independent enterprises, then that other State appropriate adjustment to the amount of tax charged therein on national laws and, in any case, after five years from the end of the profits which would be subject to such change would have accrued of that State. provisions of paragraphs (2) and (3) shall not apply in the case of fraud, neglect.

ARTICLE 10

Dividends Dividends paid by a company which is a resident of a Contracting State to a other Contracting State may be taxed in that other State. such dividends may also be taxed in the Contracting State of company paying the dividends is a resident, and according to the laws of where the dividends are paid by a company which is a resident of Canada to a resident of Malta who is the beneficial owner of the dividends the tax so charged shall not exceed 15 per cent of the gross amount of the dividends; where the dividends are paid by a company which is a resident of Malta resident of Canada who is the beneficial owner thereof -Malta tax on the gross amount of the dividends shall not exceed that chargeable on the profits out of which the dividends are paid; where such dividends are paid out of profits of a company in receipt of tax benefits under the provisions of the Aids to Industries Ordinance, the rate of Malta tax on the dividends shall be that applicable under the Fifth Schedule of the said Ordinance. of this paragraph shall not affect the taxation of the company on which the dividends are paid. "dividends" as used in this Article means income from shares, shares or "jouissance" rights, mining shares, founders shares or other debt-claims, participating in profits, as well as income which is same taxation treatment as income from shares by the laws of the the company making the distribution is a resident. provisions of paragraph (2) shall not apply if the beneficial owner of the a resident of a Contracting State, carries on business in the other of which the company paying the dividends is a resident, through a establishment situated therein, or performs in that other State independent from a fixed base situated therein, and the holding in respect of dividends are paid is effectively connected with such permanent fixed base. In such case the provisions of Article 7 or Article 14, as shall apply. a company which is resident of a Contracting State derives profits or other Contracting State, that other State may not impose any tax on paid by the company, except insofar as such dividends are paid to a other State or insofar as the holding in respect of which the dividends

(6) Nothing in this Agreement shall be construed as preventing State from imposing on the earnings of a company attributable establishment in that State, tax in addition to the tax which would the earnings of a company which is a national of that State, provided additional tax so imposed shall not exceed 15 per cent of the earnings which have not been subjected to such additional tax in years. For the purpose of this provision, the term "earnings" means attributable to a permanent establishment in a Contracting State previous years after deducting therefrom all taxes, other than the referred to herein, imposed on such profits by that State.

ARTICLE 11

Interest

(1) Interest arising in a Contracting State and paid to a resident Contracting State may be taxed in that other State.

(2) However, such interest may also be taxed in the Contracting it arises, and according to the laws of that State, but if the recipient owner of the interest the tax so charged shall not exceed 15 per amount of the interest.

(3) Notwithstanding the provisions of paragraph (2) -

(a) interest arising in a Contracting State and paid to the Government Central Bank of the other Contracting State shall be exempt the first-mentioned State;

(b) interest arising in Malta and paid to the Export Corporation shall be exempt from Malta tax;

(c) interest arising in Canada and paid to the Malta Corporation shall be exempt from Canadian tax.

(4) The term "interest" as used in this Article means income from every kind, whether or not secured by mortgage, and whether or not to participate in the debtor’s profits, and in particular, income from securities and income from bonds or debentures, including premiums attaching to such securities, bonds or debentures, as well as subjected to the same taxation treatment as income from money lent the State in which the income arises. However, the term "interest" income dealt with in Article 10.

(5) The provisions of paragraph (2) shall not apply if the beneficial interest, being a resident of a Contracting State, carries on business Contracting State in which the interest arises through a permanent situated therein, or performs in that other State independent personal fixed base situated therein, and the debt-claim in respect of which the is effectively connected with such permanent establishment or fixed case the provisions of Article 7 or Article 14, as the case may be, shall

(6) Interest shall be deemed to arise in a Contracting State when that State itself, a political subdivision, a local authority or a resident Where, however, the person paying the interest, whether he is fixed base is situated. by reason of a special relationship between the payer and the or between both of them and some other person, the amount of the regard to the debt-claim for which it is paid, exceeds the amount have been agreed upon by the payer and the beneficial owner in the relationship, the provisions of this Article shall apply only to the amount. In such case, the excess part of the payments shall remain to the laws of each Contracting State, due regard being had to the of this Agreement.

ARTICLE 12

Royalties arising in a Contracting State and paid to a resident of the other may be taxed in that other State. such royalties may also be taxed in the Contracting State in which according to the laws of that State, but if the recipient is the of the royalties the tax so charged shall not exceed 10 per cent of of the royalties.

Notwithstanding the provisions of paragraph (2), copyright royalties and payments in respect of the production or reproduction of any literary, dramatic, musical or artistic work (but not including royalties in respect films and works on film or videotape for use in connection with arising in a Contracting State and paid to a resident of the other State who is subject to tax thereon shall be taxable only in that other

"royalties" as used in this Article means payments of any kind consideration for the use of, or the right to use, any copyright, patent, design or model, plan, secret formula or process, or for the use of, or the industrial, commercial or scientific equipment, or for information industrial, commercial or scientific experience, and includes payments of respect of motion picture films and works on film or videotape for use in television. provisions of paragraph (2) and (3) shall not apply if the beneficial royalties, being a resident of a Contracting State, carries on business in Contracting State in which the royalties arise through a permanent situated therein, or performs in that other State independent personal fixed base situated therein, and the right or property in respect of royalties are paid is effectively connected with such permanent fixed base. In such case the provisions of Article 7 or Article 14, as shall apply. shall be deemed to arise in a Contracting State when the payer is a political subdivision, a local authority or a resident of that State. however, the person paying the royalties, whether he is a resident of a or not, has in a Contracting State a permanent establishment or a connection with which the obligation to pay the royalties was incurred, royalties are borne by such permanent establishment or fixed base, then royalties, having regard to the use, right or information for which exceeds the amount which would have been agreed upon by the beneficial owner in the absence of such relationship, the provisions shall apply only to the last-mentioned amount. In such case, the excess payments shall remain taxable according to the laws of each Contracting regard being had to the other provisions of this Agreement.

ARTICLE 13

Capital Gains

(1) Gains derived by a resident of a Contracting State from immovable property situated in the other Contracting State may other State.

(2) Gains from the alienation of immovable property forming business property of a permanent establishment which an enterprise State has in the other Contracting State or of movable property pertaining base available to a resident of a Contracting State in the other Contracting the purpose of performing independent personal services, including the alienation of such a permanent establishment (alone or with the or of such a fixed base, may be taxed in that other State.

(3) Gains from the alienation of ships or aircraft operated in international and movable property pertaining to the operation of such ships or taxable only in the Contracting State in which such property is taxable paragraph (3) of Article 22.

(4) Gains from the alienation of -

(a) shares of the capital stock of a company the property principally of immovable property situated in a Contracting

(b) an interest in a partnership, trust or estate, the property consists principally of immovable property situated State, may be taxed in that State. For the purposes of this paragraph, the property" includes the shares of a company referred to in sub-paragraph interest in a partnership, trust or estate referred to in sub-paragraph include property, other than rental property, in which the business partnership, trust or estate is carried on.

(5) Gains from the alienation of any property, other than that paragraphs (1), (2), (3) and (4) shall be taxable only in the Contracting which the alienator is a resident.

(6) The provisions of paragraph (5) shall not affect the right Contracting States to levy, according to its law, a tax on gains from any property derived by an individual who is a resident of the other State and has been a resident of the first-mentioned State at any time years immediately preceding the alienation of the property. performance of professional services or other activities of an independent taxable only in that State unless such services are performed in the State and -

individual is present in that other State for a period or periods aggregating more than 90 days in the taxable year concerned, or individual has or had a fixed base regularly available to him in that State for the purpose of performing his activities, but only so much of the income as is attributable to that fixed base may be taxed in other State, or remuneration for his services in the other Contracting State is derived from residents of that State and exceeds ten thousand Canadian dollars or the equivalent in Malta currency during the taxable year. "professional services" includes especially independent scientific educational or teaching activities as well as the independent physicians, lawyers, engineers, architects, dentists and accountants.

ARTICLE 15

Dependent Personal Services to the provisions of Articles 16, 18 and 19, salaries, wages and other remuneration derived by a resident of a Contracting State in respect of an be taxable only in that State unless the employment is exercised in Contracting State. If the employment is so exercised, such remuneration as therefrom may be taxed in that other State. Notwithstanding the provisions of paragraph (1), remuneration derived by a Contracting State in respect of an employment exercised in the other shall be taxable only in the first-mentioned State if the recipient is other State for a period or periods not exceeding in the aggregate 183 calendar year concerned, and either -remuneration earned in the other Contracting State in the calendar concerned does not exceed five thousand Canadian dollars ($ 5,000) or its equivalent in Malta currency; or remuneration is paid by, or on behalf of, an employer who is not a resident of the other State, and such remuneration is not borne by a permanent establishment or a fixed base which the employer has in the State.

Notwithstanding the preceding provisions of this Article, remuneration in employment exercised aboard a ship or aircraft operated in traffic by an enterprise of a Contracting State, shall be taxable only in

ARTICLE 16

Directors’ Fees and other similar payments derived by a resident of a Contracting Artistes and Athletes

(1) Notwithstanding the provisions of Articles 7, 14 and 15, income a resident of a Contracting State as an entertainer, such as a theatre, radio or television artiste, or a musician, or as an athlete, from his personal as such exercised in the other Contracting State, may be taxed in that

(2) Where income in respect of personal activities exercised by an athlete in his capacity as such accrues not to the entertainer or athlete to another person, that income may, notwithstanding the provisions and 15, be taxed in the Contracting State in which the activities of athlete are exercised.

(3) The provisions of paragraph (2) shall not apply if it is neither the entertainer or the athlete nor persons related thereto, participate or indirectly in the profits of the person referred to in that paragraph.

ARTICLE 18

Pensions and Annuities

(1) Pensions and annuities arising in a Contracting State and of the other Contracting State may be taxed in that other State.

(2) Pensions arising in a Contracting State and paid to a resident Contracting State may also be taxed in the State in which they arise, the law of that State. However, in the case of periodic pension payments, charged shall not exceed the lesser of -

(a) 15 per cent of the gross amount of the payment, and

(b) the rate determined by reference to the amount of tax of the payment would otherwise be required to pay for total amount of the periodic pension payments received year, if he were resident in the Contracting State in which arises and if such total amount were his only income in

(3) Annuities arising in a Contracting State and paid to a resident Contracting State may also be taxed in the State in which they arise, the law of that State; but the tax so charged shall not exceed 15 portion thereof that is subject to tax in that State. However, this limitation apply to lump-sum payments arising on the surrender, cancellation, or other alienation of an annuity, or to payments of any kind under averaging annuity contract.

(4) Notwithstanding anything in this Agreement -

(a) war veterans pensions or allowances or war disability from a Contracting State shall not be taxable in the State so long as they are not subject to tax in the first-mentioned

(b) alimony and other similar payments arising in a Contracting paid to a resident of the other Contracting State who therein in respect thereof, shall be taxable only in that subdivision or a local authority thereof to an individual in respect of rendered to that State or subdivision or authority shall be taxable only in such remuneration shall be taxable only in the other Contracting services are rendered in that State and the individual is a resident of that national of that State; or not become a resident of that State solely for the purpose of rendering the services. provisions of Articles 15, 16 and 17 shall apply to remuneration in services rendered in connection with a business carried on by a or a political subdivision or a local authority thereof. remuneration is paid under a development assistance programme of a State, out of funds exclusively supplied by that State to a specialist or seconded to the other Contracting State with the consent of that other remuneration shall be deemed to have been paid by the first-mentioned be taxable only in that State.

ARTICLE 20

Students which a student, apprentice or business trainee who is, or was before visiting a Contracting State, a resident of the other Contracting is present in the first-mentioned State solely for the purpose of his training receives for the purpose of his maintenance, education or not be taxed in that State, provided that such payments arise from that State.

ARTICLE 21

Other Income to the provisions of paragraph (2), items of income of a resident of a State, wherever arising, not dealt with in the foregoing Articles of this be taxable only in that State. if such income is derived by a resident of a Contracting State from other Contracting State, such income may also be taxed in the State in and according to the law of that State. However, in the case of estate or trust, the tax so charged shall, provided that the income is Contracting State in which the recipient resides, not exceed 15 per cent amount of the income.

(1) Capital represented by immovable property owned by Contracting State and situated in the other Contracting State, may other State.

(2) Capital represented by movable property forming part property of a permanent establishment which an enterprise of a Contracting in the other Contracting State or by movable property pertaining available to a resident of a Contracting State in the other Contracting purpose of performing independent personal services, may be taxed State.

(3) Capital represented by ships and aircraft operated by an Contracting State in international traffic and by movable property operation of such ships and aircraft, shall be taxable only in that State.

(4) All other elements of capital of a resident of a Contracting taxable only in that State.

V. Methods for Prevention of Double Taxation

ARTICLE 23

Elimination of Double Taxation

(1) In the case of Canada, double taxation shall be avoided as

(a) Subject to the existing provisions of the law of Canada deduction from tax payable in Canada of tax paid in a Canada and to any subsequent modification of those provisions shall not affect the general principle hereof - and deduction or relief is provided under the laws of Canada, Malta on profits, income or gains arising in Malta shall from any Canadian tax payable in respect of such profits, gains.

(b) Subject to the existing provisions of the law of Canada determination of the exempt surplus of a foreign affiliate subsequent modification of those provisions - which shall general principle hereof - for the purpose of computing company resident in Canada shall be allowed to deduct taxable income any dividend received by it out of the exempt a foreign affiliate resident in Malta.

(2) For the purposes of paragraph (1) (a), tax payable in Malta Canada in respect of dividends, interest or royalties received by it which is a resident of Malta, shall be deemed to include any amount have been payable as Malta tax for any year but for an exemption from, of, tax granted for that year or any part thereof under -

(a) the provisions of article 5 of the Aids to Industries Ordinance, they were in force on, and have not been modified since, signature of this Agreement, or have been modified respect so as not to affect their general character; be of a substantially similar character, if it has not been modified thereafter or has been modified only in minor respects so as not to affect general character, any deduction from Canadian tax granted in accordance with the paragraph shall not exceed 15 per cent of the gross amount of the interest or royalties. case of Malta, double taxation shall be avoided as follows: provisions of the law of Malta regarding the allowance of a credit in respect of foreign tax, where, in accordance with the provisions Agreement, there is included in a Malta assessment income from sources or elements of capital situated in Canada, the Canadian tax on such elements of capital, as the case may be, shall be allowed as a credit relative Malta tax payable thereon. purposes of this Article, profits, income or gains of a resident of a which are taxed in the other Contracting State in accordance with shall be deemed to arise from sources in that other State.

VI. Special Provisions

ARTICLE 24

Non-discrimination nationals of a Contracting State shall not be subjected in the other to any taxation or any requirement connected therewith which is burdensome than the taxation and connected requirements to which other State in the same circumstances are or may be subjected.

taxation on a permanent establishment which an enterprise of a State has in the other Contracting State shall not be less favourably other State than the taxation levied on enterprises of that other State same activities. in this Article shall be construed as obliging a Contracting State to of the other Contracting State any personal allowances, reliefs and taxation purposes on account of civil status or family responsibilities to its own residents. Enterprises of a Contracting State, the capital of which is wholly or partly controlled, directly or indirectly, by one or more residents of the other State, shall not be subjected in the first-mentioned State to any taxation requirement connected therewith which is other or more burdensome than the connected requirements to which other similar enterprises of the first-State, the capital of which is wholly or partly owned or controlled, indirectly, by one or more residents of a third State, are or may be

Article, the term "taxation" means taxes which are the subject of this

States result or will result for him in taxation not in accordance with of this Agreement, he may, irrespective of the remedies provided law of those States, address to the competent authority of the Contracting which he is a resident an application in writing stating the grounds revision of such taxation. To be admissible, the said application must within two years from the first notification of the action which gives not in accordance with the Agreement.

(2) The competent authority referred to in paragraph (1) shall objection appears to it to be justified and if it is not itself able appropriate solution, to resolve the case by mutual agreement with authority of the other Contracting State, with a view to the avoidance in accordance with the Agreement.

(3) A Contracting State shall not, after the expiry of the time limits its national laws and, in any case, after five years from the end of the in which the income concerned has accrued, increase the tax base either of the Contracting States by including therein items of income also been charged to tax in the other Contracting State. This paragraph apply in the case of fraud, wilful default or neglect.

(4) The competent authorities of the Contracting States shall resolve by mutual agreement any difficulties or doubts a interpretation or application of the Agreement. In particular, authorities of the Contracting States may consult together to endeavour

(a) to the same attribution of profits to a resident of a Contracting its permanent establishment situated in the other Contracting

(b) to the same allocation of income between a resident State and any associated person provided for in Article

(5) The competent authorities of the Contracting States may consult the elimination of double taxation in cases not provided for in the may also communicate with each other directly for the purpose Agreement.

ARTICLE 26

Exchange of Information

(1) The competent authorities of the Contracting States shall information as is necessary for carrying out the provisions of this the domestic laws of the Contracting States concerning taxes Agreement insofar as the taxation thereunder is not contrary to the information received by a Contracting State shall be treated as secret manner as information obtained under the domestic laws of that State disclosed only to persons or authorities (including courts and administrative involved in the assessment or collection of, the enforcement in determination of appeals in relation to, the taxes covered by the persons or authorities shall use the information only for such purposes.

(2) In no case shall the provisions of paragraph (1) be construed on a Contracting State the obligation -State; supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to public policy (ordre public).

ARTICLE 27

Diplomatic Agents and Consular Officers in this Agreement shall affect the fiscal privileges of diplomatic consular officers under the general rules of international law or under the special agreements. Notwithstanding Article 4, an individual who is a member of a diplomatic post or permanent mission of a Contracting State which is situated Contracting State or in a third State shall be deemed for the purposes of to be a resident of the sending State if he is liable in the sending State obligations in relation to tax on his total income as are residents of that

Agreement shall not apply to International Organizations, to organs or and to persons who are members of a diplomatic mission, consular permanent mission of a third State, being present in a Contracting State and liable in either Contracting State to the same obligations in relation to income as are residents thereof.

ARTICLE 28

Miscellaneous Provisions provisions of this Agreement shall not be construed to restrict in any exclusion, exemption, deduction, credit, or other allowance now or accorded by the laws of a Contracting State in the determination of the tax State.

in the Agreement shall be construed as preventing -Canada from imposing a tax on amounts included in the income of a resident of Canada according to article 91 of the Canadian Income Tax

Malta from applying the provisions of Article 12(2) of the Income Tax the Agreement provides that income arising in a Contracting State from tax in that State, either in full or in part, and, under the law in Contracting State, such income is subject to tax by reference to the which is remitted to or received in that other State and not by full amount thereof, then the relief to be allowed in the first-shall apply only to so much of income as is remitted to or received

Agreement shall not apply to any company, trust or partnership that is a trust or partnership, as the case may be, were beneficially owned residents of that State.

VII. Final Provisions

ARTICLE 29

Entry into Force

(1) This Agreement shall be ratified and the instruments of ratification exchanged at Valletta, Malta.

(2) The Agreement shall enter into force 30 days after instruments of ratification and its provisions shall have effect:

(a) in Canada:

(i) in respect of tax withheld at the source on credited to non-residents on or after the first day calendar year in which the exchange of instruments takes place; and

(ii) in respect of other Canadian tax for taxation years after the first day of January in the calendar year exchange of instruments of ratification takes place;

(b) in Malta, in respect of taxes which are levied for any year beginning on the first day of January in the calendar following that in which the exchange of instruments of place.

ARTICLE 30

Termination

This Agreement shall continue in effect indefinitely but either may, on or before June 30 in any calendar year after the year of instruments of ratification, give to the other Contracting State a notice in writing through diplomatic channels; in such event, the Agreement have effect:

(a) in Canada:

(i) in respect of tax withheld at the source on credited to non-residents on or after the first day calendar year immediately following that in which given; and

(ii) in respect of other Canadian tax for taxation years after the first day of January in the calendar following that in which the notice is given;

(b) in Malta, in respect of taxes which are levied for the year beginning on the first day of January in the second year in which the notice is given. Robert J. Stivala (sgd.) Claude T. Charland GOVERNMENT OF FOR THE GOVERNMENT OF REPUBLIC OF MALTA CANADA