3. Article — Faktiskā īpašnieka definīcija

1. a)) darbojas kā izmaksātājs šī līguma 5.panta izpratnē;
2. (1)) This Agreement shall apply to interest payments, (as defined in Article 6 of this Agreement), made by a paying agent, (as defined in Article 5 of this Agreement), established within the Cayman Islands to beneficial owners (as defined in Article 3 of this Agreement), who are individuals resident in the Republic of Latvia.
3. (2)) The scope of this Agreement shall be limited to taxation of savings income in the form of interest payments on debt claims, to the exclusion, inter alia, of the issues relating to the taxation of pension and insurance benefits.
4. b)) darbojas juridiskas personas — vienības, kuras peļņa tiek aplikta ar nodokli saskaņā ar vispārpieņemtiem komercdarbības aplikšanas ar nodokļiem noteikumiem, pārvedamu vērtspapīru kolektīvo ieguldījumu fonda, kas izveidots saskaņā ar Padomes direktīvas 85/611/EEK nosacījumiem, vai līdzīga kolektīvo ieguldījumu fonda, kas nodibināts Kaimanu salās, vai šī līguma 5.panta otrajā daļā minētās vienības labā, un pēdējā minētajā gadījumā atklāj šīs vienības nosaukumu un adresi saimnieciskajai vienībai, kura veic uzkrājumu ienākuma maksājumu un pēdējā šo informāciju nodod tās līgumslēdzējas puses kompetentajai iestādei, kurā tā ir nodibināta;
5. c)) darbojas citas fiziskās personas labā, kas ir faktiskais īpašnieks un atklāj izmaksātājam šī faktiskā īpašnieka identitāti.
6. (1)) Where interest payments, as defined in Article 6 of this Agreement, are made by a paying agent established in the Cayman Islands to beneficial owners, as defined in Article 3 of this Agreement, who are residents of the Republic of Latvia, the paying agent shall report to the competent authority of the Cayman Islands:
7. (2)) Within six months following the end of the calendar year, the competent authority of the Cayman Islands shall communicate to the competent authority of the Republic of Latvia, automatically, the information referred to in paragraph 1 (a)-(d) of this Article, for all interest payments made during that year.
8. (1)) For the purposes of this Agreement "beneficial owner" shall mean any individual who receives an interest payment or any such individual for whom an interest payment is secured, unless such individual can provide evidence that the interest payment was not received or secured for his own benefit. An individual is not deemed to be the beneficial owner when he:
9. (2)) Where a paying agent has information suggesting that the individual who receives an interest payment or for whom an interest payment is secured may not be the beneficial owner, and where neither paragraph 1(a) nor 1(b) of this Article apply, it shall take reasonable steps to establish the identity of the beneficial owner. If the paying agent is unable to identify the beneficial owner, it shall treat the individual in question as the beneficial owner.
10. (1)) For the purposes of this Agreement, 'paying agent' means any economic operator who pays interest to or secures the payment of interest for the immediate benefit of the beneficial owner, whether the operator is the debtor of the debt claim which produces the interest or the operator charged by the debtor or the beneficial owner with paying interest or securing the payment of interest.
11. (2)) Any entity established in a contracting party to which interest is paid or for which interest is secured for the benefit of the beneficial owner shall also be considered a paying agent upon such payment or securing of such payment. This provision shall not apply if the economic operator has reason to believe, on the basis of official evidence produced by that entity that:
12. (3)) The entity referred to in paragraph 2 of this Article shall, however, have the option of being treated for the purposes of this Agreement as an UCITS or equivalent undertaking as referred to in sub-paragraph (c) of paragraph 2. The exercise of this option shall require a certificate to be issued by the contracting party in which the entity is established and presented to the economic operator by that entity. A contracting party shall lay down the detailed rules for this option for entities established in their territory.
13. (4)) Where the economic operator and the entity referred to in paragraph 2 of this Article are established in the same contracting party, that contracting party shall take the necessary measures to ensure that the entity complies with the provisions of this Agreement when it acts as a paying agent.
14. (5)) The legal persons exempted from sub-paragraph (a) of paragraph 2 of this Article are
15. (1)) For the purposes of this Agreement "interest payment" shall mean:
16. (2)) As regard paragraphs (1)(c) and (d) of this Article, when a paying agent has no information concerning the proportion of the income which derives from interest payments, the total amount of the income shall be considered an interest payment.
17. (3)) As regards paragraph (1)(d) of this Article, when a paying agent has no information concerning the percentage of the assets invested in debt claims or in shares or units as defined in that paragraph, that percentage shall be considered to be above 40%. Where he cannot determine the amount of income realised by the beneficial owner, the income shall be deemed to correspond to the proceeds of the sale, refund or redemption of the shares or units.
18. (4)) When interest, as defined in paragraph (1) of this Article, is paid to or credited to an account held by an entity referred to in Article 5(2) of this Agreement, such entity not having qualified for the option under Article 5(3) of this Agreement, such interest shall be considered an interest payment by such entity.
19. (5)) As regards paragraphs (1)(b) and (d) of this Article, a contracting party shall have the option of requiring paying agents in its territory to annualise the interest over a period of time which may not exceed one year, and treating such annualised interest as an interest payment even if no sale, redemption or refund occurs during that period.
20. (6)) By way of derogation from paragraphs (1)(c) and (d) of this Article, a contracting party shall have the option of excluding from the definition of interest payment any income referred to in those provisions from undertakings or entities established within its territory where the investment in debt claims referred to in paragraph 1(a) of this Article of such entities has not exceeded 15% of their assets. Likewise, by way of derogation from paragraph 4 of this Article, a contracting party shall have the option of excluding from the definition of interest payment in paragraph 1 of this Article interest paid or credited to an account of an entity referred to in Article 5(2) of this Agreement which has not qualified for the option under Article 5(3) of this Agreement and is established within its territory, where the investment of such an entity in debt claims referred to in paragraph 1(a) of this Article has not exceeded 15% of its assets.
21. (7)) The percentage referred to in paragraph 1(d) of this Article and paragraph 3 of this Article shall from 1st January 2011 be 25%.
22. (8)) The percentages referred to in paragraph 1(d) of this Article and in paragraph 6 of this Article shall be determined by reference to the investment policy as laid down in the fund rules or instruments of incorporation of the undertakings or entities concerned or, failing which, by reference to the actual composition of the assets of the undertakings or entities concerned.
23. (1)) During the transitional period as defined in Article 10(2) of the Directive, but until the 31st December, 2010 at the latest, domestic and international bonds and other negotiable debt securities which have been first issued before the 1st March, 2001 or for which the original issuing prospectuses have been approved before that date by the competent authorities within the meaning of Council Directive 80/390/EEC or by the responsible authorities in third countries shall not be considered as debt claims within the meaning of Article 6(1)(a) of this Agreement, provided that no further issues of such negotiable debt securities are made on or after 1st March, 2002. However, should the transitional period continue beyond 31st December, 2010, the provisions of this Article shall only continue to apply in respect of such negotiable debt securities:
24. (2)) Nothing in this Article shall prevent the contracting parties from taxing the income from the negotiable debt securities referred to in paragraph 1 in accordance with their national laws.
25. (1)) All information provided and received by the competent authority of a contracting party shall be kept confidential.
26. (2)) Information provided to the competent authority of a contracting party may not be used for any purpose other than for the purposes of direct taxation without the prior written consent of the other contracting party.
27. (3)) Information provided shall be disclosed only to persons or authorities concerned with the purposes of direct taxation, and used by such persons or authorities only for such purposes or for oversight purposes, including the determination of any appeal. For these purposes, information may be disclosed in public court proceedings or in judicial proceedings.
28. (4)) Where a competent authority of a contracting party considers that information which it has received from the competent authority of the other contracting party is likely to be useful to the competent authority of another Member State, it may transmit it to the latter competent authority with the agreement of the competent authority which supplied the information.
29. (1)) This Agreement shall remain in force until terminated by either contracting party.
30. (2)) Either contracting party may terminate this Agreement by giving notice of termination in writing to the other contracting party, such notice to specify the circumstances leading to the giving of such notice. In such a case, this Agreement shall cease to have effect 12 months after the serving of notice.
31. (1)) The application of this Agreement shall be conditional on the adoption and implementation by all the Member States of the European Union, by the United States of America, Switzerland, Andorra, Liechtenstein, Monaco and San Marino, and by all the relevant dependent and associated territories of the Member States of the European Community, respectively, of measures which conform with or are equivalent to those contained in the Directive or in this Agreement, and providing for the same dates of implementation.
32. (2)) Subject to the mutual agreement procedure provided for in Article 8 of this Agreement, the application of this Agreement or parts thereof may be suspended by either contracting party with immediate effect through notification to the other specifying the circumstances leading to such notification should the Directive cease to be applicable either temporarily or permanently in accordance with European Community law or in the event that a Member State should suspend the application of its implementing legislation. Application of the Agreement shall resume as soon as the circumstances leading to the suspension no longer apply.
33. (3)) Subject to the mutual agreement procedure provided for in Article 8 of this Agreement, either contracting party may suspend the application of this Agreement through notification to the other specifying the circumstances leading to such notification in the event that one of the third countries or territories referred to in paragraph 1 should subsequently cease to apply the measures referred to in that paragraph. Suspension of application shall take place no earlier than two months after notification. Application of the Agreement shall resume as soon as the measures are reinstated by the third country or territory in question.
34. 1)) The entity is clearly considered to be a public entity according to the national criteria.
35. 2)) Such public entity is a non‑market producer which administers and finances a group of activities, principally providing
36. 3)) Such public entity is a large and regular issuer of debt securities.
37. 4)) The State concerned is able to guarantee that such public entity will not exercise early redemption in the event of gross‑up clauses.