AUSTRALIAN TAX TREATIES
The Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (the MLI) has modified the application of this tax treaty. A synthesised text of the MLI and this tax treaty is available to facilitate the understanding of how the MLI modifies this tax treaty.
This Convention shall apply to persons who are residents of one or both of the Contracting States. 2.
[ ATO Notation: REPLACED by paragraph 1 of Article 3 of the MLI] In the case of an item of income (including profits or gains) derived by or through a person that is fiscally transparent with respect to that item of income under the laws of either State, such item shall be considered to be derived by a resident of a State to the extent that the item is treated for the purposes of the taxation law of such State as the income of a resident.
The following paragraph 1 of Article 3 of the MLI replaces paragraph 2 of Article 1 of this Convention:
ARTICLE 3 OF THE MLI - TRANSPARENT ENTITIES
For the purposes of [the Convention], income derived by or through an entity or arrangement that is treated as wholly or partly fiscally transparent under the tax law of either [Contracting State] shall be considered to be income of a resident of a [Contracting State] but only to the extent that the income is treated, for purposes of taxation by that [Contracting State], as the income of a resident of that [Contracting State].
The following paragraph 1 of Article 11 of the MLI applies and supersedes the provisions of this Convention:
ARTICLE 11 OF THE MLI - APPLICATION OF TAX AGREEMENTS TO RESTRICT A PARTY ' S RIGHT TO TAX ITS OWN RESIDENTS
[The Convention] shall not affect the taxation by a [Contracting State] of its residents, except with respect to the benefits granted under paragraph 3 of Article 9, or Articles 15, 18, 19, 20, 23, 24, 25 or 28 of [the Convention].
For information on the status and effect of the ATO Notations, see Status of the ATO Notations above.