1. States Parties shall provide assistance to each other in the collection of tax claims. This aid shall not be limited by Articles 1 and 2. The competent authorities of the States Parties may, by mutual agreement, regulate the application of this article. 2. Where a Contracting State relates to and taxes the profits of an enterprise of that State – the profits on which an enterprise of the other Contracting State is to be taxed in that other State, and the profits so recorded are profits which would have been paid to the enterprise of the first-mentioned State if the conditions imposed between the two enterprises had been those, which would have been taken between independent undertakings, that other State shall then make an appropriate adjustment of the amount of tax which it levies on those profits. When such adaptation is made, due account shall be taken of the other provisions of this Convention and, where appropriate, the competent authorities of the States Parties shall consult each other. iv. The revised treaty also provides for a new article on tax collection assistance, which will assist in the collection of tax claims between the two countries. 3. Where a person other than a natural person resides in both Contracting States pursuant to paragraph 1, he shall be deemed to be established only in the State in which his place of effective management is located. If the State in which the place of effective management is located cannot be designated, the competent authorities of the States Parties shall decide by mutual agreement on the matter. The revised DBA was completed with the aim of promoting existing economic cooperation between Kenya and India, with India being one of the main investors in Kenya.
The DBA modernizes the provisions of the previous DBA to better comply with changing international tax practices and domestic tax legislation applicable in both Kenya and India, and offers many incentives, such as reduced withholding tax rates. 3. The competent authorities of the Contracting States shall endeavour to establish by common accord any difficulty or doubt arising from the interpretation or application of the Convention. . . .