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(1) To the extent that the terms of an international arrangement to which the Republic is a party are inconsistent with the provisions of a tax law, the terms of the international arrangement shall prevail over the provisions of the tax law.

(2) Subsection (1) applies

(a) only to an international arrangement ratified by Parliament under Article 75 of the Constitution; and

(b) subject to subsection (5) and section 99.

(3) Subsection (4) applies where the Commissioner-General receives a request pursuant to an international arrangement from the competent authority of another country for the collection in the country of an amount payable by a tax debtor under the tax laws of that other country.

(4) For the purpose of subsection (3), the Commissioner-General may, by service of a notice in writing, require the tax debtor to pay the amount to the Commissioner-General by the date specified in the notice for transmission to the competent authority.

(5) Where an international arrangement requires Ghana to exempt an amount from tax or subject an amount to reduced taxation, the exemption from or reduction of tax is not available to an entity that

(a) for the purpose of the arrangement, is a resident of the other contracting State; and

(b) fifty percent or more of whose underlying ownership is held by persons who, for the purpose of the arrangement, are not residents of the other contracting State or Ghana.

(6) For the purpose of this section, “underlying ownership”

(a) in relation to an entity, means membership interest owned in the entity, directly or indirectly through one or more interposed entities, by individuals or by entities in which no person has a membership interest; or

(b) in relation to an asset owned by an entity, is determined as though the asset is owned by the persons having underlying ownership of the entity in proportion to that ownership of the entity.

(7) For the purpose of this section, “competent authority of another country” means the person designated by that country as the competent authority for tax purposes.