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.
Article 10 of the Agreement is amended by:
(a) omitting paragraph (3) and substituting:
In this Article ' royalties ' means payments or credits, whether periodical or not, and however described or computed, to the extent to which they are received as consideration for -
(a) the use of, or the right to use, any -
(i) copyright (other than a literary, dramatic, musical or artistic copyright), patent, design or model, plan, secret formula or process, trademark, or other like property or right; or
(ii) industrial, commercial or scientific equipment;
(b) the supply of scientific, industrial or commercial knowledge or information; or
(c) total or partial forbearance in respect of the use or supply of any property or right referred to in this paragraph,
but does not include royalties or other payments in respect of the operation of mines or quarries or of the exploitation of natural resources or payments to the extent to which they are received as consideration for the use of, or the right to use, motion picture films, tapes for use in connection with radio broadcasting or films or video tapes for use in connection with television. "
(b) adding at the end of paragraph (4):
" In any such case, the provisions of Article 5 shall apply. "