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)}}{\*\pnseclvl5\pndec\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl6\pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (} {\pntxta )}}{\*\pnseclvl7\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl8\pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl9\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}\pard\plain \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid985193 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 IN THE HIGH COURT OF FIJI \par COURT OF REVIEW \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid985193 {\fs24\lang2057\langfe1033\langnp2057\insrsid985193 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid985193 {\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 No. 1 OF 1991 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid985193 {\fs24\lang2057\langfe1033\langnp2057\insrsid985193 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid985193 {\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 BETWEEN}{\fs24\lang2057\langfe1033\langnp2057\insrsid985193 : \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid985193 {\fs24\lang2057\langfe1033\langnp2057\insrsid985193 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid985193 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 COMMONWEALTH DEVELOPMENT CORPORATION \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 APPELLANT \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid985193 {\fs24\lang2057\langfe1033\langnp2057\insrsid985193 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid985193 {\fs24\lang2057\langfe1033\langnp2057\insrsid985193 AND: \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid985193 {\fs24\lang2057\langfe1033\langnp2057\insrsid985193 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid985193 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 THE}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid985193\charrsid985193 }{ \b\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 COMMISSIONER OF INLAND REVENUE \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 RESPONDENT \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid985193 {\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 \par Mr I V Gzell Q.C.}{\fs24\lang2057\langfe1033\langnp2057\insrsid985193 and Mr R A Smith for Appellant \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 Mr G A Keay for Respondent \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid985193 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid985193 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 JUDGMENT \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid985193 {\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 \par In this case, the Commonwealth Development Corporation, which was referred to in Court as CDC, appeals against its assessment to income tax for 1989 upon two grounds, first that it is not liable at all, by reason of the double tax agreement made between Fiji and the United Kingdom, and secondly because the tax charged is excessive by reason of Article 24 of that agreement. The C D C called two witnesses, the first Charles Harrowby Christopher Seller who was its representative in Fiji in 1988 and the second John Francis Avery Jones who was tendered as an expert witness on foreign law similar to Article 5 of the double tax agreement. Mr Keay for the Commissioner objected to the production of Mr Avery Jones upon the ground that the double tax agreement has been made a part of Fiji's domestic law. I received Mr Avery Jones evidence }{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 'de bene esse'}{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 , and the first decision I have to make is whether it is admissible. The Commissioner did not call evidence.}{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid16190095\charrsid985193 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid14633610 The first point to be made }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 is that no expert witness can tell this Court what the law is in Fiji. On the ot her hand this Court does not know what foreign law is, and can only learn from the sworn testimony of an expert witness.}{\fs24\lang2057\langfe1033\langnp2057\insrsid985193 }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 Mr Keay submits that Mr Avery Jones is trying to tell the Court what the law is in Fiji because Article 5 of the double tax agreement, with which the Court is concerned, has been made part of the domestic law of}{ \fs24\lang2057\langfe1033\langnp2057\insrsid16190095 Fiji. He referred to }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid16190095\charrsid10119909 Scruples}{\fs24\lang2057\langfe1033\langnp2057\insrsid16190095\charrsid10119909 v. }{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid16190095\charrsid10119909 Crabtree & Evely}{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid10119909 n}{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 (1983) 1 IPR 318, a New South Wales case, in which}{\fs24\lang2057\langfe1033\langnp2057\insrsid16190095 }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 Powell J, in the Supreme Court of that state, was dealing with five notices o f motion seeking to clear the ground preparatory to the trial of an action by Scruples Ltd against five defendants,}{\fs24\lang2057\langfe1033\langnp2057\insrsid16190095 }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 two of them United States companies, one from Connecticut and one from Delaware.}{\fs24\lang2057\langfe1033\langnp2057\insrsid985193 }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 The learned Judge referred to }{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid10119909 Camille & Henry Dreyfus Fo}{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid16190095\charrsid10119909 u}{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid10119909 ndation }{\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid16190095 }{\fs24\lang2057\langfe1033\langnp2057\insrsid16190095\charrsid10119909 v}{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid10119909 .}{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid10119909 Inland Revenue Commissioner}{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid16190095\charrsid10119909 ,}{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid10119909 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 [1954] 1 Ch 672, as authority for saying that the question of how Courts of a foreign country apply a law is a mixed question of law and fact. That case is a decision of the}{ \fs24\lang2057\langfe1033\langnp2057\insrsid16190095 }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 English Court of Appeal and Jenkins LJ said [1954] 1 Ch 672,}{\fs24\lang2057\langfe1033\langnp2057\insrsid16190095 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 708}{\fs24\lang2057\langfe1033\langnp2057\insrsid16190095 ;}{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 3 WLR 167, 196 }{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid985193\charrsid10119909 "}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid10119909 In my view it is well within the competence of a witness as to the operation of a given instrument under foreign law to state the content of the relevant law and to add his opinion as to the effect attributable to that law to the instrument in question.}{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid985193\charrsid10119909 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 That, as I understand the matter, is what Mr Avery Jones has purported to do in this case. Expert evidence is, of course, principally opinion evidence, but it is opinion based upon the knowledge and experience of the witness. I consider that the evidence of Mr Avery Jones is admissible.}{ \fs24\lang2057\langfe1033\langnp2057\insrsid2646171 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid16190095\charrsid985193 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 Mr Avery Jones is very experienced. He is an E nglish solicitor, practising in London and specialising in taxation. He is a Deputy Special Commissioner of Income Tax, and explains that the Special Commissioners are a tax appeal tribunal in the United Kingdom. He is third Vice President of the Internat i onal Fiscal Association, and a former chairman of its British branch. He is visiting professor in taxation at the London School of Economics, a member and past chairman of the Revenue Law Committee of the Law Society of England and Wales and a former spec ialist (in taxation) member of the Council of that Law Society. He has written}{\fs24\lang2057\langfe1033\langnp2057\insrsid16190095 }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 extensively in the field of tax treaties and one of his treatises, }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid985193\charrsid16190095 "}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid16190095 The Interpretation of Tax Treaties with particular reference of Article 3(2) of the OECD model}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid985193\charrsid16190095 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 is referred to by the appellant. He said in his evidence that he was familiar with the approach of other countries (including in particular the United States, Canada, Japan, Australia, France, Belgium, the Netherlands, Germany, Switzerland and Italy) to the interpretat ion of tax treaties. He has perused the papers exhibited to the affidavit of Mr Seller to which I refer in the next paragraph. \par \par I pass then to the kernel of the case which is whether CDC is liable to income tax in Fiji. Mr Seller's evidence in chief was furnished by an affidavit containing no fewer than 35 exhibits, including among them a direct}{ \fs24\lang2057\langfe1033\langnp2057\insrsid16190095 ion}{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 from the head office of CDC to its representative in Fiji and a power of attorney to him and he then submitted himself for cross-examination. It}{\fs24\lang2057\langfe1033\langnp2057\insrsid16190095 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 became clear when he had completed }{\fs24\lang2057\langfe1033\langnp2057\insrsid16190095 hi}{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 s evidence that although CDC in 1988 maintained an office in Suva, which they have since closed (June 1991), the appellant's Fiji representative had very little power, and all the decisions about investments were made in CDC's head offi ce in London. I should perhaps add that CDC is a statutory corporation, incorporated in England in 1948, now organised and existing under the Commonwealth Development Act 1978 (United Kingdom) as amended in 1982 and 1986. Its purpose is to assist overseas countries in the development of their economies. CDC claims t}{\fs24\lang2057\langfe1033\langnp2057\insrsid16190095 hat its office in Fiji existed:}{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid16190095\charrsid985193 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid16190095 {\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 1.}{\fs24\lang2057\langfe1033\langnp2057\insrsid985193 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 As representative of CDC's interests in the South Pacific. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid16190095 {\fs24\lang2057\langfe1033\langnp2057\insrsid16190095 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid16190095 {\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 2.}{\fs24\lang2057\langfe1033\langnp2057\insrsid985193 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 For checking on the progress of projects in which CDC has invested, including projects in Vanuatu and the Solomon Islands as well as in Fiji. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid16190095 {\fs24\lang2057\langfe1033\langnp2057\insrsid16190095 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid16190095 {\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 3.}{\fs24\lang2057\langfe1033\langnp2057\insrsid985193 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 To identify possible investment opportunities which could be of both commercial and development benefit. Once a potential project has been identified CDC London takes over responsibility for its investigation, approval and documentation. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid985193 {\fs24\lang2057\langfe1033\langnp2057\insrsid16190095 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 CDC claims that the functions of the Fiji office are restricted to the collection and relaying of relevant information relating to possible investments to its Head Office. It has no role in negotiation and decision making relating to CDC's investments. Although it is manned by CDC's employees, they have no authority to conclude contracts in CDC's name, or in their own names, for that matter. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid16190095 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 CDC has no share capital and is wholly funded by the United Kingdom Government and}{\fs24\lang2057\langfe1033\langnp2057\insrsid16190095 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 is one instrument of the United Kingdom aid policy.}{\fs24\lang2057\langfe1033\langnp2057\insrsid985193 }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 It has not so far qualified as earning}{\fs24\lang2057\langfe1033\langnp2057\insrsid16190095 }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 sufficient income to pay tax in the United Kingdom. Its liability to tax whether in Fiji or in the United Kingdom is governed by the United Kingdom-Fiji double taxation agreement which}{\fs24\lang2057\langfe1033\langnp2057\insrsid16190095 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 was concluded on 21st November 1975 and has been in force in Fiji since 1st January 1975. That double taxation agreement was brought into force in Fiji by notice published in the Gazette as Legal Notice No. 12 of 1976. It has its origin in Section 106 of the Income Tax Act Cap 201 which empowers the Minister of Finance to enter into agreements with the Government of any other country whereby arrangements are made with such Government with a view, inter alia, to the pre vention, mitigation or discontinuance of the levying under the laws}{\fs24\lang2057\langfe1033\langnp2057\insrsid16190095 }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 of Fiji and of such other country of income tax in respect of the same income. Subsection }{\fs24\lang2057\langfe1033\langnp2057\insrsid10119909 (4) }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 provides that when notified in the Gazette, the arrangement so notified shall have effect}{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid16190095\charrsid5601406 "as }{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 if enacted in this Act}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid985193\charrsid5601406 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 \par \par The critical portion of the double tax agre}{\fs24\lang2057\langfe1033\langnp2057\insrsid16190095 e}{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 ment, which is called throughout }{ \fs24\lang2057\langfe1033\langnp2057\insrsid985193\charrsid985193 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 the Convention}{\fs24\lang2057\langfe1033\langnp2057\insrsid985193\charrsid985193 "}{ \fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 , is Article 5 so far as liability to tax is concerned, and Article 24 so far as excess taxation is concerned. Where I have to refer to t he double tax agreement hereafter I shall refer to is as }{\fs24\lang2057\langfe1033\langnp2057\insrsid10119909 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 the Convention}{ \fs24\lang2057\langfe1033\langnp2057\insrsid985193\charrsid985193 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 . Article 5 of the Convention, then, so far as it is relevant, is as follows: \par \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid16190095 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 1.}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid985193\charrsid5601406 }{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 For the purposes of this Convention the term 'permanent establishment' means a fixed place of business in which the business of the enterprise is wholly or partly carried on. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid16190095 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid16190095\charrsid5601406 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid16190095 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 2.}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid985193\charrsid5601406 }{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 The term 'permanent establis}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid5601406 hment' shall include especially:}{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid16190095 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid16190095\charrsid5601406 \par }\pard \ql \li1440\ri0\nowidctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid16190095 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 a)}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid985193\charrsid5601406 }{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 a place of management \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid16190095 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid16190095\charrsid5601406 \par }\pard \ql \li1440\ri0\nowidctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid16190095 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 b)}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid985193\charrsid5601406 }{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 a branch \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid16190095 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid16190095\charrsid5601406 \par }\pard \ql \li1440\ri0\nowidctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid16190095 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 c)}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid985193\charrsid5601406 }{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 an office. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid16190095 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid16190095\charrsid5601406 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid14633610 {\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid14633610 The definition then goes on to refer to a factory, a workshop, a mine, oil well, or quarry,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid16190095\charrsid14633610 }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid14633610 a building site and an agricultural, pastoral or forestry property, but it is agreed that none of}{ \fs24\lang2057\langfe1033\langnp2057\insrsid16190095\charrsid14633610 }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid14633610 these is relevant. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid16190095 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid16190095 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 3.}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid985193\charrsid5601406 }{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 The term 'permanent establishment'}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid16190095\charrsid5601406 shall not be deemed to include:}{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid16190095 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid16190095\charrsid5601406 \par }\pard \ql \li1440\ri0\nowidctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid16190095 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 a)}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid985193\charrsid5601406 }{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 the use of facilities solely for the purpose of storage}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid5601406 , display in delivery of goods}{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 or merchandise belonging to the enterprise. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid16190095 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid16190095\charrsid5601406 \par }\pard \ql \li1440\ri0\nowidctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid16190095 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 b)}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid985193\charrsid5601406 }{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid16190095 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid16190095\charrsid5601406 \par }\pard \ql \li1440\ri0\nowidctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid16190095 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 c)}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid985193\charrsid5601406 }{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid16190095 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid16190095\charrsid5601406 \par }\pard \ql \li1440\ri0\nowidctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid16190095 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 d)}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid985193\charrsid5601406 }{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise, or for collecting information for the}{ \b\i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid16190095 }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 enterprise. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid16190095 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 \par }\pard \ql \li1440\ri0\nowidctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid16190095 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 e)}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid985193\charrsid5601406 }{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 the maintenance of a fixed place of business solely for the purpose of advertising, for the supply of information, for scientific research or for similar activities which have a preparatory or auxiliary character for the enterprise. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid985193 {\fs24\lang2057\langfe1033\langnp2057\insrsid16190095 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid16190095 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 4.}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid985193\charrsid5601406 }{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 An enterprise of one of the Contracting States shall be deemed to have a permanent establishment in}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid5601406 the other Contrac ting State if:}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid16190095 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 \par }\pard \ql \li1440\ri0\nowidctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid16190095 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 a)}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid985193\charrsid5601406 }{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 it carries on the activity of providing the services within that other Contracting State of public entertainers or athletes referred to in Article I7; or \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid16190095 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid16190095\charrsid5601406 \par }\pard \ql \li1440\ri0\nowidctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid16190095 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 b)}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid985193\charrsid5601406 }{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 it carries on supervisory activities in that other Contracting State for more t han six months in connection with a building site, or a construction, installation or assembly project which is being undertaken in that other Contracting State. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid985193 {\fs24\lang2057\langfe1033\langnp2057\insrsid16190095\charrsid5601406 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid16190095 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid16190095\charrsid5601406 5. }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 A person acting in a Contracting State on behalf of an enterprise of the other Contracting State - other than an agent of an independent status to whom the provisions of paragraph (6) of this Article apply - shall be deemed to be a permanent establishment in the first mentioned Contracting State if he has, and habitually exercises in that Contracting State an authority to conclude contracts in the name of the enterprise, unless his activities are limited to the purchase of goods or merchandise for the ente rprise. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid16190095 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid16190095\charrsid5601406 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid16190095 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 6.}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid985193\charrsid5601406 }{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 An enterprise of a Contracting State shall not be deemed to have a permanent establishment in other Contract State merely because it carries on business in that other Contracting State through a broker, general commission agent or any other agent of an}{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid16190095\charrsid5601406 }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 independent status, where such persons are acting in the ordinary course of their business. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid16190095 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid16190095\charrsid5601406 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid16190095 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 7.}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid985193\charrsid5601406 }{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting S tate of which carries on business in that other Contracting State (whether through a permanent}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid16190095\charrsid5601406 }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 establishment or otherwise) shall not of itself constitute either company a permanent establishment of the other. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid985193 {\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 \par Under the first paragraph of Article 8 of the Convention, the profits of an enterprise in a Contracting State are taxable only in that Contracting State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. So the question which h as to be resolved in this appeal - at all events in this part of it is, did CDC have a permanent establishment in Fiji?}{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid2646171 {\fs24\lang2057\langfe1033\langnp2057\insrsid2646171 Although the }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 Convention under consideration here is not an international treaty, there}{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171 }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 are a sufficient number of these tax conventions about to warrant this Court construing the}{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171 }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 Convention like an international treaty in the broad way advocated by Lord Macmillan when }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171 }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 he said in }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid14633610 Stag}{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid985193\charrsid14633610 }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid14633610 Line}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid14633610 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid14633610 v}{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid14633610 . Foscolo Mango }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 [1932] AC 328, 350}{ \fs24\lang2057\langfe1033\langnp2057\insrsid2646171 ; }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 101 LJKB 165, 175 }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid985193\charrsid5601406 "}{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 It is important to remember that the Act of 19 24 (the Carriage of Goods by Sea Act) was the outcome of an International Conference and that the rules in the schedule have an international currency. As these rules must come under the consideration of foreign courts, it is desirable in the interest of uniformity that their interpretation should not be rigidly controlled by domestic precedents of antecedent date but rather that the language of the rules should be construed on broad principles of general acceptation.}{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid985193\charrsid5601406 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 In }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 Buchanan}{ \fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 v}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 . }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 Babco }{ \fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 [19}{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171 78] AC 141, 152;}{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 [1977] 3}{ \fs24\lang2057\langfe1033\langnp2057\insrsid2646171 }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 WLR 907, 911 Lord Wilberforce in delivering the leading judgment in the House of Lords said}{ \fs24\lang2057\langfe1033\langnp2057\insrsid2646171 }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid985193\charrsid5601406 "}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 I think the correct approach is to interpret the English test, which after all is likely to be used by many others than British businessm en, in a normal manner, appropriate for the interpretation of an international convention, unconstrained by technical rules of English law, or by English legal precedent, but on broad principles of general acceptation.}{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid985193\charrsid5601406 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid5601406 }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 He then referred}{ \fs24\lang2057\langfe1033\langnp2057\insrsid2646171 }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 to Lord Macmillan's comments in the }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid13925618 Stag Line }{ \fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 case. In }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid13925618 Fothergill}{\fs24\lang2057\langfe1033\langnp2057\insrsid985193\charrsid13925618 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid13925618 v. }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid13925618 Monarch Airlines}{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171 [1980] 3 WLR 209; 2 All ER 696}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13925618 :}{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 [1981] AC 251, in the House of Lords, Lord Wilberforce and Lord Diplock both gave a broad construction to the Carriage by Air Act 1961 and Lord Scarman said (A}{\fs24\lang2057\langfe1033\langnp2057\insrsid13925618 .C. 290:}{ \fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 3 WLR 231) }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid985193\charrsid13925618 "}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid13925618 Faced with an international treaty which has been incorporated into our law, British courts should now follow broadly the guidelines declared by the Vienna Convention in the Law of Treaties.}{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid985193\charrsid13925618 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid13925618 }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 Those guidelines had earlier been cited by Lord Diplock in the course of his judgment in the same case (A}{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 C. 282}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13925618 :}{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 3 WLR 224). They are: Article 31(1) of the Vienna Convention.}{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid2646171 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid985193\charrsid13925618 "}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid13925618 1.}{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid985193\charrsid13925618 }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid13925618 A treaty shall be interpreted in good faith in accordance with the ordinary meaning to be given to the terms of the treaty in their context and in the light of its object and purpose.}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid985193\charrsid13925618 "}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid13925618 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid985193 {\fs24\lang2057\langfe1033\langnp2057\insrsid2646171 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13925618 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid13925618 Article 32 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid985193 {\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid2646171 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid985193\charrsid13925618 "}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid13925618 Recourse may be had to supplementary means of interpretation including the preparatory work of the treaty and the circumstances of its conclusion, in order to confirm the meaning resulting from the application of Article 31, or to determine the meaning when the interpre tation according to Article 31(a) leaves the meaning ambiguous or obscure or (b) leads to a result which is manifestly absurd or unreasonable.}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid985193\charrsid13925618 "}{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid13925618 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid985193 {\fs24\lang2057\langfe1033\langnp2057\insrsid2646171 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 It would appear that the English Bar has largely accepted these dicta for Vinelott J, in }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid13925618 Sun Life Assurance Co o f Canada}{\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid2646171 }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid13925618 v.}{\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid2646171 }{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid13925618 Pearson}{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 (1984) T.C. 250, 310 said }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid985193\charrsid13925618 "}{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid13925618 It is common ground that in the light of the decision of the House of Lords in Fothergill V. Monarch Airlines the Commentaries (that is to say, the Commentaries attached to the report of the Fiscal Committee o f the Organisation for Economic Co-operation and Development) can, and indeed must be referred to as a guide to the interpretation of the Treaty.}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid985193\charrsid13925618 "}{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid13925618 }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 He was referring to the 1980 treaty between Canada and the United Kingdom. The Court of Appeal echoed this co mment at p. 331 of the Report.}{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 \par Although there is no doubt that CDC had an office or place of management in Fiji during the year of assessment, Mr Gzell argued that it maintained a fixed place of business within Article 5(3)(d) or 5(3)(e) of the Convention solely for the purpose of activities of a character auxiliary or preparatory to the enterprise in which it is engaged, namely the provision of aid to developing countries, and it is certainly clear from the evidence that the CDC representative in Fiji ha d no power to make any decision on its behalf. Mr Avery Jones referred in his evidence to decisions of foreign, that is European and United States, Courts. None of them is akin to the present case, and there is no English decision on a tax treaty except th at of }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid13925618 Commerzbank }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 (1990) STC 285 in which Mummery J. found the words of the article he was asked to interpret sufficiently clear to enable him to do without purposive aids. I accept Mr Keay's argument that the double taxation treaty, having been incorporate d into Fiji law by statute, has become part of Fiji's municipal or domestic law. \par \par However, it must be construed in the same way as an international treaty is construed, and so construing it, I am satisfied that CDC had no permanent establishment here in 19}{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171 89, although it maintained a fix}{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 ed place of business solely for the purpose of advertising, for the supply of information and for similar activities of a preparatory or auxiliary character to its enterprise.}{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 \par I do not accept Mr Keay's submission that the word 'solely' means in effect 'one only' and although I agree that 'shall be deemed not to include' has a di}{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171 fferent meaning from '}{ \fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 shall not be deemed to include', I cannot see any difference in meaning in the present context. CDC accordingly succeeds on its first ground of appeal. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 The appellant also contends that it was discriminated against in that it was taxed at a higher rate than resident companies in that it paid tax at 47.5 percent while resident companies paid 37 percent. It says that, even it if had a permanent establishment in Fiji it should pay tax only at 43.5 percent made up as follows:}{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 \par }\pard \ql \li1080\ri0\nowidctlpar\faauto\adjustright\rin0\lin1080\itap0\pararsid3544467 {\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 35 + 2.5 + (15 x 2/3(100 = 37.5)}{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid3544467 {\fs24\lang2057\langfe1033\langnp2057\insrsid2646171 = }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 37.5 + (0.1 x 62.5) \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171 = }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 37.5 + 6.25}{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid2646171 {\fs24\lang2057\langfe1033\langnp2057\insrsid2646171 = }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 43.75. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid985193 {\fs24\lang2057\langfe1033\langnp2057\insrsid2646171 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13925618 Mr Keay, on the other h}{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 and, submits that there is no discrimination at all, because Article 24(1) refers to}{ \fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid13925618 }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid13925618 'the same circumstances'}{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid13925618 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 Mr Keay construes }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid16404791 'the same circumstances'}{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid16404791 }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 as meaning a similar business, and because there is none, contends that there can be no discrimination. But I prefer Mr Avery Jones' evidence here, and }{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid16404791 'the same circumstances'}{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid16404791 }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 should be equated with what a resident company would pay. In my view the appellant would be entitled to succeed on this ground if it had a permanent establishment in Fiji.}{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 \par Accordingly the appeal must succeed and the Commissioner must pay costs to be taxed in default of agreement. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid2646171 {\b\caps\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid2646171 K A Stuart \par Court of Review \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid985193 {\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 \par 23 October 1992 \par \par Solicitors:}{\fs24\lang2057\langfe1033\langnp2057\insrsid985193 }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646171\charrsid985193 Munro, Leys & Co: \par The Solicitor for the Inland Revenue \par }}