(Section 2)
1. Application
(1) The provisions of the Convention incorporated in Schedule 1 to this Order apply as modified below—
(a) as if the contracting parties were Saint Lucia and the Government of Denmark;
(b) as if the tax concerned in the case of Saint Lucia were income tax;
(c) as if the taxes concerned in the case of Denmark included the Defence tax;
(d) as if references to the date of signature were references to 22 December 1954;
(e) as if references to the 6th day of April were references to 1 January 1954.
(2) The extension shall have effect in Saint Lucia as respect tax for the year of assessment 1954 (or 1954/55) and for subsequent years of assessment, (and will have effect in Denmark as respects Danish tax for any taxation year beginning on or after 1 April 1954).
(3) The extension shall continue in effect indefinitely but may be terminated as respects Saint Lucia by written notice of termination given on or before 30 June in any calendar year not earlier than the year 1957 by either of the High Contracting Parties to the Convention to the other High Contracting Party through the diplomatic channel and in such event the extension shall cease to have effect in Saint Lucia as respects tax for the year of assessment beginning in the calendar year next following the date of such notice and for subsequent years of assessment and will cease to have effect in Denmark as respects Danish tax for any taxation year beginning on or after 1 April in the calendar year next following that in which the notice is given.
2. Modifications
(1) In Article VII(1) of the Convention the words “exempt from United Kingdom surtax” shall be understood for the purposes of this extension as though they read “is not liable to tax in the territory at a rate in excess of the rate applicable to a company”.
(2) In Articles VIII and IX all references to interest shall be deemed to be deleted.