59 STAT.] FRANCE-DOUBLE TAXATION-JULY 25, 1939 tion, to make such corrections in the declaration of profits realized in France as may be necessary to show the exact amount of such profits. The same principle applies mutatis mutandis to French en- terprises having permanent es- tablishments in the United States. ARTICLE 5. When an American enterprise, by reason of its participation in the management or capital of a French enterprise, makes or im- poses on the latter, in their com- mercial or financial relations, con- ditions different from those which would be made with a third enterprise, any profits which should normally have appeared in the balance sheet of the French enterprise, but which have been in this manner, diverted to the American enterprise, are, subject to the measures of appeal ap- plicable in the case of the tax on industrial and commercial profits, incorporated in the taxable profits of the French enterprise. The same principle applies mu- tatis mutandis, in the event that profits are diverted from an Ameri- can enterprise to a French enter- prise. ARTICLE 6. Income derived by navigation enterprises of one of the contract- ing States from the operation of ships documented under the laws of that State shall continue to benefit in the other State by the reciprocal tax exemptions ac- corded by the exchange of notes of June 11 and July 8, 1927 between the United States of America and France. Income which an enterprise of one of the contracting States de- porter A la declaration des bene fices realis6s en France, les re- dressements necessaires pour d& gager le chiffre exact de ces bn&e fices. Le meme principe s'applique, mutatis mutandis, aux entreprises francaises ayant des 6tablisse- ments stables aux Etats-Unis. ARTICLE 5. Lorsqu'une entreprise ameri- caine, du fait de sa participation a la gestion ou au capital d'une entreprise frangaise, fait ou im- pose A cette derniere, dans leurs relations commerciales ou finan- cidres, des conditions diff6rentes de celles qui seraient faites A une tierce entreprise, tous benefices qui auraient df normalement ap- paraitre au bilan de l'entreprise frangaise mais qui ont 6et, de la sorte, transf6r6s A l'entreprise americaine, sont, sous reserve des recours applicables en matiere d'impot sur les benefices indus- triels et commerciaux, incorpor6s aux b6enfices imposables de l'en- treprise francaise. Le mnme principe s'applique mutatis mutandis lorsque des ben4fices sont transferes d'une entreprise americaine A une en- treprise francaise. ARTICLE 6. Les revenus que les entreprises de navigation maritime d'un des Etats contractants tirent de l'ex- ploitation de navires immatricules conformement aux lois de cet Etat, continueront a ben6ficier dans l'autre Etat de l'exemption r6ci- proque d'impots prevus par les lettres 6changees les 11 juin et 8 juillet 1927 entre les Etats-Unis d'Amerique et la France. Les revenus que les entreprises d'un des Etats contractants tirent Diversion of profits. Income from navi. gation enterprises. 47 Stat. 2604. 897
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