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ARTICLES

LEGAL RESOURSES

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    • Article 2103: Taxation

    1. Except as set out in this Article, nothing in this Agreement shall apply to taxation measures.

    2. Nothing in this Agreement shall affect the rights and obligations of any Party under any tax convention. In the event of any inconsistency between this Agreement and any such convention, that convention shall prevail to the extent of the inconsistency.

    3. Notwithstanding paragraph 2:

  • Article 301 (TLCAN: Art. 301) (Market Access - National Treatment) and such other provisions of this Agreement as are necessary to give effect to that Article shall apply to taxation measures to the same extent as does Article III of the GATT; and

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  • Article 314 (TLCAN: Art. 314) (Market Access - Export Taxes) and Article 604 (TLCAN: Art. 604) (Energy Export Taxes) shall apply to taxation measures.

    • 4. Subject to paragraph 2:

  • Article 1202 (TLCAN: Art. 1202) (Cross-Border Trade in Services - National Treatment) and Article 1405 (TLCAN: Art. 1405) (Financial Services - National Treatment) shall apply to taxation measures on income, capital gains or on the taxable capital of corporations, and to those taxes listed in paragraph 1 of Annex 2103.4 (TLCAN: Anexo 2103.4), that relate to the purchase or consumption of particular services, and

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  • Articles 1102 (TLCAN: Art. 1102) and 1103 (TLCAN: Art. 1103) (Investment - National Treatment and Most-Favored Nation Treatment), Articles 1202 (TLCAN: Art. 1202) and 1203 (TLCAN: Art. 1203) (Cross-Border Trade in Services - National Treatment and Most-Favored Nation Treatment) and Articles 1405 (TLCAN: Art. 1405) and 1406 (TLCAN: Art. 1406) (Financial Services - National Treatment and Most-Favored Nation Treatment) shall apply to all taxation measures, other than those on income, capital gains or on the taxable capital of corporations, taxes on estates, inheritances, gifts and generation-skipping transfers and those taxes listed in paragraph 1 of Annex 2103.4 (TLCAN: Anexo 2103.4),

    • Except that nothing in those Articles shall apply

  • Any most-favored-nation obligation with respect to an advantage accorded by a Party pursuant to a tax convention,

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  • To a non-conforming provision of any existing taxation measure,

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  • To the continuation or prompt renewal of a non-conforming provision of any existing taxation measure,

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  • To an amendment to a non-conforming provision of any existing taxation measure to the extent that the amendment does not decrease its conformity, at the time of the amendment, with any of those Articles,

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  • To any new taxation measure aimed at ensuring the equitable and effective imposition or collection of taxes and that does not arbitrarily discriminate between persons, goods or services of the Parties or arbitrarily nullify or impair benefits accorded under those Articles, in the sense of Annex 2004 (TLCAN: Anexo 2004), or

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  • To the measures listed in paragraph 2 of Annex 2103.4 (TLCAN: Anexo 2103.4).

    • 5. Subject to paragraph 2 and without prejudice to the rights and obligations of the Parties under paragraph 3, Article 1106 (TLCAN: Art. 1106) (3), (4) and (5) (Investment - Performance Requirements) shall apply to taxation measures.

    6. Article 1110 (TLCAN: Art. 1110) (Expropriation and Compensation) shall apply to taxation measures except that no investor may invoke that Article as the basis for a claim under Article 1116 (TLCAN: Art. 1116) (Claim by an Investor of a Party on its Own Behalf) or 1117 (TLCAN: Art. 1117) (Claim by an Investor of a Party on Behalf of an Enterprise), where it has been determined pursuant to this paragraph that the measure is not an expropriation. The investor shall refer the issue of whether the measure is not an expropriation for a determination to the appropriate competent authorities set out in Annex 2103.6 (TLCAN: Anexo 2103.6) at the time that it gives notice under Article 1119 (TLCAN: Art. 1119) (Notice of Intent to Submit a Claim to Arbitration). If the competent authorities do not agree to consider the issue or, having agreed to consider it, fail to agree that the measure is not an expropriation within a period of six months of such referral, the investor may submit its claim to arbitration under Article 1120 (TLCAN: Art. 1120) (Submission of a Claim to Arbitration).