OECD GUIDELINES AND U.S. REGULATIONS

CONTENTS Preface to Fourth Edition I-5 Preface to Third Edition I-7 Preface to Second Edition I-9 Preface to First Edition I-11 Chapter-heads I-13 List of Cases I-35 1 INTRODUCTION 1.1 Introduction 1 1.2 Global formulary apportionment and Transfer pricing adjustments 3 1.3 Transfer pricing adjustments - Favoured over global formulary apportionment method 4 1.4 Transfer pricing - Meaning and effect 6 1.5 Aims and objects 9 1.6 Tax avoidance 11 1.7 Exchange control and foreign investment 12 1.8 Withdrawal of profits in the form of royalties etc. 12 1.9 Political and economic uncertainties 12 1.10 Whatever motive - Tax avoidance is the consequence 13 1.11 Characterisation of income 14 1.12 Measures to curb abuse 14 2 OECD GUIDELINES AND U.S. REGULATIONS 2.1 Introduction 18 I-15

2.2 OECD Guidelines 1995 - Background 19 2.3 US regulations of 1968 setting the trend 22 2.3A Need felt for OECD guidelines 33 2.4 1979 Report 34 2.5 1984 Report 34 2.6 1987 Report 35 2.7 International Tax Avoidance and Evasion - Four Related Studies 1987 36 2.8 Tax treatment of Transfer Pricing in US - Changes in 1986 and 1994 36 2.9 OECD Guidelines - Object and purposes 39 2.9-1 OECD Guidelines - Background 40 2.9-2 OECD Guidelines 1995 - Salient features 41 2.9-3 OECD Guidelines 1995 - Reaffirming 1979 Report 43 2.9-4 OECD Guidelines 1995 - Detailed and Systematic 45 2.9-5 OECD Guidelines 1995 - Supplement 1979 and other Reports 47 2.9-6 Administrative procedures and approaches to resolving transfer pricing disputes 51 2.9-7 Transfer Pricing compliance and examination practice 52 2.9-8 Simultaneous tax examinations 54 2.9-9 Advance Pricing Agreement 55 2.9-10 Arbitration 55 2.9-11 Documentation which can be reasonably demanded from enterprises 56 2.10 OECD Guidelines - Other Reports 57 2.11 OECD Guidelines - 1996 Report - Intangibles 57 2.12 OECD Guidelines - 1996 Report - Intra-group services 60 2.13 OECD Guidelines - 1997 Report - Cost Contribution Arrangements (CCA) 61 2.14 OECD Guidelines - 1998 Annex - Practical examples 62 2.15 OECD Guidelines - 1998 - Reports relating to electronic commerce 62 2.16 OECD Guidelines - 1999 Update - Advance Pricing Arrangements (APA) 63 I-16

2.17 OECD Guidelines - The Taxation of Global Trading of Financial Instruments - Discussion Draft 63 2.18 OECD Guidelines - Four main issues 64 2.19 OECD Guidelines, 2010 65 ANNEX 2.1 : E-commerce : Implementing the Ottawa taxation framework conditions 68 3 TRANSFER PRICING - OVERVIEW OF PROVISIONS 3.1 Introduction 91 3.2 Computation of income 94 3.3 Report from an accountant 94 3.4 Arm s length price 95 3.5 Definitions 96 3.6 Penalty - Non-compliance of procedure 96 3.7 Penalty - Non-maintenance of information and documents 96 3.8 Penalty - Non-furnishing of report from the accountant 96 3.9 Penalty - Non-furnishing of information or documents 97 3.10 Penalty - Concealment 97 3.11 Transfer pricing provisions 98 3.12 Salient features 98 4 INTERNATIONAL TRANSACTION 4.1 Introduction 101 4.2 International transaction - Meaning 101 4.3 Restricted meaning 105 4.3-1 Transaction - Meaning 106 4.3-2 Transaction between two or more branches of a associated enterprise 109 4.3-2A Permanent establishment and Head Office 111 4.3-3 International transaction - Not between associated enterprises but deemed 115 I-17

4.3-3a Prior agreement between the person and the associated enterprise 116 4.3-3b Terms of the transaction determined by the associated enterprise 117 4.3-4 Transaction in the nature of 118 4.3-4a Purchase 120 4.3-4b Sale 120 4.3-4c Lease 124 4.3-4d Tangible or intangible property 126 4.3-4e Provision of services 130 4.3-4f Lending or borrowing money 142 4.3-5 Other transaction than specifically mentioned 145 4.4 International transaction - Inclusive definition 148 4.4-1 Mutual agreement or arrangement (Cost Contributions Arrangement) 148 4.4-2 In connection with 149 4.4-3 Benefit, service or facility 149 4.5 Structure 151 4.6 Characterisation 153 4.6-1 Thin or hidden capitalisation 154 4.6-2 Royalty 157 4.6-2a Software, whether process or a product 158 4.6-3 Treaty shopping 163 4.6-3a Resident of third state not entitled to treaty benefit 164 4.6-3b Treaty shopping - Adopted to take tax advantage 165 4.6-3c Domestic law principles for tax avoidance 166 4.6-3d X Limited case 168 4.6-3e Consequence to source Country 169 4.6-3f Recent trends 169 4.6-3g Harmful Tax Practices 171 4.6-3h Anti-treaty shopping provision - Indo-US treaty 173 4.7 Arrangements different from adopted by independent parties 174 I-18

5 SPECIFIED DOMESTIC TRANSACTION 5.1 Introduction 176 5.2 Specified domestic transactions 177 5.3 Fair market value 178 5.3-1 Determination subjective 178 5.4 Arm s length regime 179 6 ASSOCIATED ENTERPRISES 6.1 Introduction 182 6.2 Enterprise 182 6.2-1 Person engaged in any activity 184 6.2-2 Activity relating to 185 6.2-3 Activity or business 185 6.2-4 Permanent establishment 186 6.3 Associated enterprises 191 6.3-1 Parents, subsidiaries and fellow subsidiaries 199 6.3-2 Special relationship 200 6.4 Participation in the management, control or capital 201 6.4-1 Management 205 6.4-2 Control 205 6.4-3 Control and management 206 6.4-4 Capital 207 6.5 Participate directly or indirectly or through intermediaries 208 6.6 Direct or Indirect ownership control 208 6.7 Special relationship under deeming provisions 211 7 ARM S LENGTH PRICE 7.1 Introduction 216 7.2 Old provision 216 I-19

7.3 New provision 219 7.4 Arm s length principle - Meaning 223 7.5 Arm s length principle 224 7.6 Arm s length price - Definition 225 7.7 Arm s length transaction - Meaning 226 7.8 Income splitting or tax fragmentation 229 7.9 Contract for work or supply of goods 230 7.9-1 Splitting of integrated business activity 232 7.10 Splitting of transaction 233 7.11 Avoidance and evasion of tax - OECD reports 239 8 COMPARABILITY 8.1 Introduction 241 8.2 Comparability - Objective 242 8.3 Comparability - Meaning 243 8.4 Comparability does not mean similarity but striking differences 244 8.5 Comparability of price and conditions 245 8.6 Comparable adjustable transaction 246 8.7 Search for comparability 249 8.8 Internal and External Comparables 251 8.8-1 SNF (Australia) case 253 8.8-2 GlaxoSmithKline case 254 8.8-3 DSG Retail Ltd. case 255 8.9 Comparability and degree of comparability 256 8.9-1 Degree of comparability - Controlled and uncontrolled transactions 258 8.9-2 Degree of comparability and relative reliability 261 8.9-3 Data-availability, coverage and reliability 261 8.9-4 Assumptions when complete data not available 263 8.9-5 Deficiency in data and assumptions 264 8.9-6 Data of previous years 264 I-20

8.10 Comparability - Product functions and enterprise 265 8.11 Comparability analysis 266 8.12 Characteristics of properties and services 270 8.12-1 Tangible property 271 8.12-2 Intangible property 274 8.13 Economic relevant circumstances 275 8.14 Functional analysis 277 8.14-1 Enterprise and conditions 278 8.14-2 Functional analysis - Purposes served 278 8.14-3 Method of finding facts in terms of functions, assets and risks 279 8.14-4 Functions are basically activities 279 8.14-5 Functions performed 280 8.14-6 Assets used 282 8.14-7 Risks assumed 282 8.14-8 Risk Allocation 285 8.15 Permanent establishment 286 8.15-1 Arm s length principle - Transfer Pricing Guidelines 289 8.15-2 Authorised approach - Two steps analysis 291 8.15-3 Morgan Stanley case 298 8.16 Contractual terms factor 298 8.17 Economic circumstances 300 8.18 Business strategies 304 8.18-1 SPG International Ltd. v. The Queen (98 DTC 1796) case 307 8.19 Transaction-by-transaction approach 308 8.19-1 GlaxoSmithKline case 312 8.19-2 Transactions closely interlinked or continuous 314 8.19-3 Transaction comprising of elements for which separate evaluation method provided 315 8.19-4 Form and substance of transaction 317 8.19-5 Transactions lacking economic substance or routed through related enterprise 317 8.19-6 Goods or services independently contracted 318 8.19-7 Transactions - Set off 319 I-21

8.20 Evaluation of package deals 320 8.21 Comparability data of prior or future years 321 9 METHODOLOGY 9.1 Introduction 324 9.2 Arm s length price of income-tax and customs duties 325 9.2-1 Purpose and methodology different for Customs and Income-tax Act 327 9.3 Arm s length price - Methods 329 9.3-1 Methods based on price and profit 332 9.3-2 Comparability of transaction and circumstances 334 9.3-3 Applying the methods - General principles 337 9.4 Most appropriate method 338 9.4-1 Methods not followed sequentially 341 9.4-2 Degree of comparability and reliability of data 342 9.5 Comparable uncontrolled price method (CUP method) 350 9.5-1 Salient features 352 9.5-2 Comparability and adjustment 352 9.5-3 Examples 359 9.5-4 Price reasonable 360 9.5-5 Services 361 9.6 Resale Price Method (RPM) 361 9.6-1 Salient features 365 9.6-2 Transaction comparability other than product itself 365 9.6-3 Comparability and adjustments 367 9.6-4 Reliable if time gap is small 370 9.6-5 Chain of distribution 370 9.6-6 Examples 371 9.6-7 Reliability 372 9.6-8 Profit method preferable to resale price method 373 9.6-9 Resale price method not used solely on evidence of internal transactions 374 9.6-10 Services 376 I-22

9.7 Cost Plus Method (CPM) 377 9.7-1 Salient features 382 9.7-2 Comparability and adjustments 382 9.7-3 Examples 385 9.7-4 Berry ratio 386 9.7-5 Reliability 388 9.7-6 Net profit method preferable over cost plus method 389 9.7-7 Cost plus method preferred for Services 390 9.8 CUP method is most favoured 391 9.8-1 Traditional methods - Choice depends on subjectmatter of transaction 393 9.9 Transactional profit methods 394 9.10 Comparable Profit Split Method (PSM) 397 9.10-1 Salient features 402 9.10-2 Comparability and Adjustments 402 9.10-3 Eli Lilly & Company v. CIR 856 F.2d 855 (7th Cir. 1985) 408 9.10-4 E-business 411 9.10-5 E-business - Transfer pricing method difficulty in applying 412 9.10-6 E-business - Profit-split method applied 413 9.10-7 Services 414 9.10-8 Profit split method preferred over cost plus method 415 9.11 Transactional Net Margin Method (TNMM) 416 9.11-1 Salient features 418 9.11-2 Comparability and adjustments 426 9.11-3 Widely used 431 9.11-4 Services 432 9.11-5 Examples 432 9.11-6 Example 2 433 9.12 Unspecified method 434 10 INTANGIBLE PROPERTY 10.1 Introduction 437 I-23

10.1-1 Trade intangibles 441 10.1-2 Marketing intangibles 442 10.1-3 Know-how and trade secrets 447 10.2 Intangible properties - Arm s length price 448 10.2-1 Comparability determination 452 10.2-2 Comparability analysis 453 10.2-3 Comparability analysis - Identifying arrangements for the transfer of Intangible property 454 10.2-4 Special factors relevant to comparability 459 10.2-5 Functional analysis 467 10.2-6 Same methodology as for tangible property 468 10.2-7 Methodology 469 10.2-8 CUT method 470 10.2-9 Re-sale price method 471 10.2-10 Profit-split method 472 10.2-11 Anticipated benefits 473 10.2-12 What independent parties would have done without using hindsight 474 10.2-13 Perspective of taxing authorities 476 10.2-14 What independent parties would have done 479 11 INTRA-GROUP SERVICES 11.1 Introduction 482 11.2 Recognition 482 11.3 Nature 483 11.3-1 Intra-group services - Whether provided 488 11.3-1a Shareholder or stewardship activities 491 11.3-2 Determination of charge 496 11.3-2a Direct-charge Method 497 11.3-2b Indirect-charge Method 498 11.3-2c Direct and indirect cost both charged 500 11.3-2d Documentation of cost incurred 501 I-24

11.3-3 Calculating arm s length consideration 502 11.3-3a Value to the recipient 503 11.3-3b How much independent enterprise willing to pay 503 11.3-3c Cost to the provider 503 11.3-3d Profit mark-up 504 11.3-3e Adjustments 507 11.3-4 Cost sharing and service charge 508 11.4 Debt-factoring centre 509 11.5 Contract for manufacturing 509 11.6 Contract for Research and Development 512 11.7 Development centres engaged in contract R&D services 513 11.8 Administration and enforcement of the intangible property rights 514 12 COST CONTRIBUTION ARRANGEMENT 12.1 Introduction 515 12.1-1 Allocation or apportionment of expenditure 519 12.1-2 Cost contribution arrangements - Bona fide 522B 13 BUSINESS RESTRUCTURING 13.1 Introduction 523 13.2 Business restructuring - Meaning 523 13.3 Arm s length principle 524 14 SAFE HARBOUR 14.1 Introduction 528 14.2 Definition 529 14.3 Scope 529 14.4 Objectives 530 I-25

14.5 Advantages 531 14.6 Disadvantages 531 14.7 Salient features 531 14.8 Eligibility, standard, circumstances, etc. 532 14.9 Eligibility 533 14.10 Eligible assessee 533 14.11 With insignificant risks 534 14.12 Eligible international transactions 535 14.13 Exercising option - Procedure 537 14.14 Eligibility under the changed circumstances 538 14.15 Transfer price - Acceptance 539 15 ADVANCE PRICING AGREEMENT 15.1 Introduction 542 15.2 Definition 542 15.3 Objects and purpose 543 15.4 Disadvantages 544 15.5 Attributes 545 15.6 Kinds 545 15.7 Salient features 547 15.8 Manner for determination of arm s length price 549 15.9 Obtaining an agreement 552 15.10 Pre-filing consultation 552 15.11 Application for advance pricing agreement 553 15.12 Procedure 555 15.13 Terms 556 15.14 TNMM frequently applied 558 15.15 Legal effect 558 15.16 Ab initio void, fraud, misrepresentation 560 15.17 Critical assumptions 561 15.18 Retroactive application (Rollback) 562 15.19 Annual compliance report 563 I-26

15.20 Compliance Audit 564 15.21 Consequences of non-compliance 565 15.22 Revision 565 15.23 Cancellation 566 15.24 Renewal 568 15.25 Assessment 568 16 COMPUTATION 16.1 Introduction 570 16.2 Methods 571 16.3 Most appropriate method 571 16.3-1 Determination by taxpayer - Steps 580 16.4 Object of audit 582 16.4-1 Steps for audit 585 16.4-2 Acceptance of taxpayer s determination 588 16.4-3 Assessing Officer power to determine 590 16.4-4 Power to form opinion and to determine 591 16.4-5 Arm s length price why not so determined - Two views 594 16.4-6 Power to determine - Three stages 596 16.4-7 Notice of tentative determination 596 16.4-8 Power to examine correctness of the assessee s claim even if Assessing Officer s determination found arbitrary 598 16.4-9 Power to rely on theories other than used in notice of prima facie determination 598 16.4-10 Power to determine even if transaction not recognised 599 16.4-11 Power to determine even if transaction results in loss 600 16.4-12 Actual and deemed (best judgment) arm s length price 601 16.5 Burden of proof 602 16.5-1 Assessee s duty to co-operate 605 16.5-2 Assessee obligation to act in good faith 606 16.6 Assessing Officer is of the opinion 607 I-27

16.6-1 Opinion on the basis of material in his possession 610 16.6-1a Information relating to third party not used, if not authorized 612 16.6-1b Information from the taxpayer 613 16.6-2 Opinion during the course of any proceeding 614 16.7 Arm s length price - Determination 615 16.7-1 In accordance with sub-section (1) and sub-section (2) of section 92C 615 16.7-2 On the basis of such material and information 617 16.7-3 Determination and assessment - Distinction 618 16.8 Show-cause notice 620 16.8-1 Show-cause notice - Meaning and requirement 621 16.8-2 Show-cause notice - Effective 622 16.8-3 Show-cause notice - Adequate 622 16.8-4 Show-cause notice - Reasonable opportunity of defence 623 16.8-5 Show-cause notice - Fair consideration of the explanation 624 16.8-6 Show-cause notice - Service 624 16.8-7 Arm s length price determination and computation 625 16.9 Computation of total income 626 16.9-1 Assessment proceeding continuing if appeal is pending, whether adjustments be made 628 16.9-1a Two computations involved 630 16.9-2 Process and burden of proof under sections 143(3) and 92C(4) 632 16.9-3 Computation - Examination process 636 16.9-4 Examination process of controlled transaction - OECD Guidelines for the Assessing Officer 638 16.9-5 Set off income against losses from non-arm s length transactions 640 16.9-6 Transfer pricing provisions not applied if computation results in reducing income 641 16.10 Transfer Pricing Officer - Reference 641 16.10-1 Reference if necessary or expedient 644 16.10-2 Reference - Recording of reasons 646 I-28

16.10-3 Reference - Section 92CA and section 92C(3) be read together 648 16.10-4 Aztec Software case 650 16.10-5 Aztec Software case - Many chinks 652 16.10-6 Sections 92CA and 92C(3) integral part of the process of determination of arm s length price 653 16.10-7 Making a reference an administrative and not a ministerial act 655 16.10-8 Considers it necessary or expedient requires deliberation and application of mind 658 16.10-9 Reading sections 92C(3) and 92CA independently leads to absurdity 659 16.10-10 Board s circular not binding on the assessee or the Tribunal 660 16.10-11 Cause not pending before the Assessing Officer cannot be referred to another authority 661 16.10-12 What cannot done directly cannot be done indirectly 662 16.10-13 Referring to Transfer Pricing Officer is subject to judicial review 663 16.10-14 Dispute resolution mechanism 664 16.10-15 Salient features of section 144C 664 16.10-16 Powers of the Panel - Appellate, investigative and adjudicative 666 16.10-17 Whether two assessment orders in case of eligible assessee 667 16.10-18 Whether the assessee deprived of right to appeal, if he fails to file objection 668 16.11 Appeals 670 16.11-1 Burden on the assessee to prove determination incorrect 671 17 INFORMATION AND DOCUMENTS 17.1 Introduction 675 17.2 Information and documents - Keeping and maintaining 676 17.2-1 Documents - Kinds, principal/supporting 682 I-29

17.2-2 Documents - Contemporaneous 684 17.2-3 Documentation - Object and purpose 685 17.3 Power of the Assessing Officer 686 17.3-1 Supporting, background and authenticating documents 688 17.3-2 Transfer Pricing Officer not empowered to call for documents 690 17.3-3 Form 3CEB an opinion of accountant 692 17.3-4 Cargill India (P.) Ltd. case 692 17.4 Demand for keeping and maintenance be reasonable 704 17.5 Rules 706 17.6 Period for keeping and maintaining 709 17.7 Consequences for non-maintenance according to rules 710 17.8 Report from the accountant 710 18 PENALTIES 18.1 Introduction 713 18.2 Penalties - Meaning 714 18.3 Penalties - OECD Guidelines, some features 715 18.4 Non-compliance with procedural requirement 716 18.4-1 Failure - Meaning 717 18.4-2 Failure should be deliberate 717 18.4-3 Every failure is penalised 718 18.4-4 Failure - For Furnish a report from an accountant 718 18.4-5 Any person 720 18.4-6 Value of international transaction 721 18.5 Understatement of profits 721 18.5-1 Concealment or inaccurate particulars of income 722 18.6 Every addition or disallowance not concealment 727 18.6-1 No fault penalty 730 18.7 Penalties - Criminal 733 18.7-1 Wilful attempt to evade tax 734 I-30

18.7-2 Avoidance of tax but not wilful evasion 737 18.8 Procedure 738 19 DOUBLE TAXATION AVOIDANCE AGREEMENTS 19.1 Introduction 742 19.2 Article 9 of the Model Tax Convention 743 19.2-1 Ingredients of article 9(1) 744 19.2-2 Corresponding adjustments under article 9(2) 745 19.3 Permanent establishment and business profits 747 19.4 Interest (Article 11) 748 19.5 Royalties (Article 12) 749 19.6 Non-discrimination (Article 24) 749 19.7 Mutual Agreement Procedure (Article 25) 751 19.8 Exchange of information (Article 26) 753 20 INTERPRETATIVE PRINCIPLES 20.1 Introduction 755 20.2 Interpretation of statute, meaning of 755 20.3 A statute is not a divine revelation 756 20.4 Statutory text and intention of the Parliament 756 20.5 Statutory construction is regarded an exercise in legal reasoning 757 20.6 Rules of interpretation 758 20.7 The Purposive Interpretation 761 20.7-1 Purposive and literal approaches combined 766 20.8 Principle of Interpretation, summing up 768 20.9 Updating construction 768 20.10 Interpretation - Internal aids 769 20.11 Preamble 770 20.12 Definition 770 20.12-1 Functions of a definition 771 I-31

20.12-2 Interpretation clause is used if the words are ambiguous or equivocal 771 20.12-3 Definition is not meant to be exhaustive 772 20.13 Means 772 20.14 Includes 773 20.14-1 The word includes may also have exhaustive meaning 773 20.15 Means and includes 774 20.15-1 Means and includes - Distinguishing features 774 20.16 Unless the context otherwise requires 775 20.17 Referential definition 776 20.18 Proviso 777 20.18-1 Interpretation of a proviso 778 20.18-2 Provided further 779 20.18-3 Proviso, whether refers to the last or all paras in a series of paragraphs 780 20.19 Explanation 780 20.19-1 Explanation, interpretation 782 20.20 Exception 783 20.21 Legal fiction and deeming provisions 783 20.22 Marginal notes and headings 784 20.22-1 Parliamentary debates 785 20.23 Setting of the Act 785 20.23-1 Punctuation 786 20.24 Other expressions 787 20.25 Notwithstanding 787 20.26 Subject to 788 20.27 In accordance with 788 20.28 In addition to 788 20.29 In derogation of 789 20.30 In connection with 789 20.31 In (by) writing 789 20.32 In relation to 789 20.33 Pertaining to 790 I-32

20.34 Incidental 790 20.35 Incident 791 20.36 In respect of - With respect to 791 20.37 Within 791 20.38 In and within 792 20.39 Namely, or that is to say 792 20.40 Liable 792 20.41 Under the Act 793 20.42 Otherwise 793 20.43 Without prejudice 794 20.44 As the case may be 794 20.45 So far as may be 795 20.46 Similar 795 20.47 Like 795 20.48/ Having regard to 795 49 20.50 Or 795 20.51 And and Or 796 20.52 At any time 796 20.53 During and In all 796 20.54 A 796 20.55 An 796 20.56 The 797 20.57 Any 797 20.58 Where, when if 798 20.59 Etc. 798 20.60 After 798 20.61 Hereafter 798 20.62 Mandatory or directory/meaning 799 20.62-1 Whether a provision is mandatory or directory 799 20.62-2 Link between the broad principle of the statute and object of the particular provision is important 800 20.62-3 Consequences of non-compliance of mandatory and directory provisions 800 I-33

12-62-4 May 801 20.62-5 Shall 801 20.62-6 Shall and may are interchangeable 801 20.62-7 Simultaneous use of may and shall 801 20.62-8 Negative or prohibitive word is mandatory 802 20.62-9 Time limit for performance of a duty is rarely mandatory 802 20.62-10 Provisions relating to avoidance of public mischief is not mandatory 803 20.62-11 Procedural Rule is not mandatory 803 20.62-12 Mode of performing a duty has to be mandatorily followed 804 20.62-13 Conditions of a provision should be mandatorily followed 804 20.63 Guidelines 804 20.64 Schedule 805 APPENDICES APPENDIX 1 : Relevant sections of Income-tax Act, 1961 811 APPENDIX 2 : Relevant Rules of Income-tax Rules, 1962 841 APPENDIX 3 : Relevant Forms of Income-tax Rules, 1962 874 APPENDIX 4 : Extracts from Explanatory Memorandum to Finance Bill, 2012 899 APPENDIX 5 : Circulars & Notifications 916 APPENDIX 6 : Model Tax Convention on Income and on Capital 986 SUBJECT INDEX 1005 I-34