Common use of Taxation Exception Clause in Contracts

Taxation Exception. 1. For the purposes of this Article: (a) for Chile, the Undersecretary of the Ministry of Finance; (b) for New Zealand, the Commissioner of Inland Revenue or an authorised representative of the Commissioner; and (c) for Singapore, the Chief Tax Policy Officer, Ministry of Finance, or any successor of these designated authorities as notified to the other Parties; taxes and taxation measures include excise duties, but do not include: (a) a “customs duty” as defined in Article 1.3 (General Definitions); or (b) the measures listed in subparagraph (b) and subparagraph (c) of that definition. 2. Nothing in this Agreement shall apply to taxes or taxation measures. 3. 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 tax convention, that convention shall prevail to the extent of the inconsistency. 4. In the case of a tax convention between two or more Parties, if an issue arises as to whether any inconsistency exists between this Agreement and the tax convention, the issue shall be referred to the designated authorities of the Parties in question. The designated authorities of those Parties shall have six months from the date of referral of the issue to make a determination as to the existence and extent of any inconsistency. If those designated authorities agree, the period may be extended up to 12 months from the date of referral of the issue. No procedures concerning the measure giving rise to the issue may be initiated under Module 14 (Dispute Settlement) until the expiry of the six-month period, or any other period as may have been agreed by the designated authorities. An arbitral tribunal established to consider a dispute related to a taxation measure shall accept as binding a determination of the designated authorities of the Parties made under this paragraph.