Explanatory Memorandum(Circulated by authority of the Treasurer, the Rt. Hon. Harold Holt.)
The purpose of this Bill is to give the force of law in Australia to an agreement entered into by Australia and New Zealand for the avoidance of double taxation on incomes flowing between the two countries.
The agreement with New Zealand was signed on 12th May, 1960, and follows similar agreements with the United Kingdom in 1946, the United States of America in 1953 and Canada in 1957. The three earlier agreements, which are still operative, received Parliamentary sanction and the agreement with New Zealand requires the force of law to be given to it by both countries before it becomes effective.
A copy of the agreement appears in full in the Bill and it is proposed to incorporate it as the Fourth Schedule to the Income Tax (International Agreements) Act 1959-1960 (in this memorandum referred to as the Principal Act).
Notes on the clauses of the Bill are given below and these are followed by explanations of the articles of the agreement.