(Section 2)
1. Application
(1) The provisions of the Convention incorporated in Schedule 1 to this Order shall apply as modified below—
(a) as if the contracting parties were Saint Lucia and the Government of Sweden; and as if the tax concerned in the case of Saint Lucia were income tax;
(b) as if references to the date of signature were references to 18 December 1953.
(2) The extension
(a) has effect in Saint Lucia as respects tax for the year of assessment beginning in the calendar year next following the date of this Order and for subsequent years of assessment; and
(b) has effect in Sweden—
as respects Swedish tax on income for which preliminary tax is payable after the last day of February in the calendar year next following the date of this Order;
as respects Swedish coupon tax payable on or after 1 January in the calendar year next following the date of this Order;
as respects Swedish capital tax assessed in or after the second calendar year next following that date.
(3) The extension continues 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 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—
(a) ceases 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
(b) ceases to have effect in Sweden as respects Swedish tax on income for which preliminary tax is payable after the last day of February in the calendar year next following that in which the notice is given, as respects Swedish coupon tax payable on or after 1 January in the calendar year next following that in which the notice is given, and as respects Swedish capital tax assessed in or after the second 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) Article VIII is considered to be deleted.