ARTICLE 7

Tax Deferral for Technical Assistance (DELETED)

1. If, in accordance with the laws of the Contracting States regulating foreign investment, a resident of one of the Contracting States transfers to a corporation of the other Contracting State for use in connection with a trade or business actively conducted by such corporation in that other Contracting State any (a) Patent, invention, model, design, secret formula or process, or similar property right, or

(b) Information concerning industrial, commercial, or scientific knowledge, experience, or skill, or provides technical, managerial, engineering, architectural, scientific, skilled, industrial, commercial, or like services which are ancillary and subsidiary to the transfer of the property rights referred to in (a) or information referred to in (b), and if in consideration thereof such resident receives from the corporation its stock, such resident may elect not to include in income for purposes of United States tax and Trinidad and Tobago tax any amount otherwise includible by reason of the receipt of such stock. In that event, otherwise deductible expenses incurred in the transaction shall not be currently deducted to the extent that they are allocable to amounts so excluded from income. If the stock received is thereafter disposed of, the amount excluded (or, if such stock is sold or exchanged for less than such amount, the amount received upon the sale or exchange) shall then be included in income in the manner in which it would have been included upon receipt of such stock. The deductions disallowed shall be allowed upon a disposition of the stock received and any gain upon such disposition shall be determined as if such amount had been included in income, and such deductions allowed, upon receipt of such stock.

2. (a) With respect to United States tax, the provisions of this article shall be subject to such regulations as are prescribed by the Secretary of the Treasury or his delegate to effectuate the provisions of this article and to further define and determine the terms, conditions, and amounts referred to herein.

(b) With respect to Trinidad and Tobago tax, the provisions of this article shall be

subject to such regulations as are prescribed by the Minister of Finance or his authorized representative to effectuate the provisions of this article and to further define and determine the terms, conditions, and amounts referred to herein. In particular, the Minister of Finance or his authorized representative may by regulations prescribe standards for the determination of whether the services referred to in paragraph 1 are ancillary and subsidiary to the property rights or information referred to in such paragraph.

(c) To the extent provided by applicable regulations, a portion of any stock to which this article applies may be required to be deposited with a designated bank or other depositary for the purpose of assuring collection of the taxes payable under this article upon disposition of the stock.