Australian Tax Treaties
Japanese Convention
CONVENTION BETWEEN AUSTRALIA AND JAPAN FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME
SECTION (20)
(20)
With reference to Article 26 (Non-Discrimination) of the Convention:
(a) Subdivision A of Division 3 of Part III of the Income Tax Assessment Act 1936 (hereinafter referred to as " ITAA 1936 " ), which provides deductions to eligible taxpayers for research and development;
(b) Section 26-25 of Part 2-5 of Chapter 2 of the Income Tax Assessment Act 1997 (hereinafter referred to as " ITAA 1997 " ), which provides measures to ensure that taxes can be effectively collected and recovered, including conservancy measures under the general law; and
(c) any provision adopted after the date of signature of the Convention which is substantially similar in purpose or intent to a provision covered by this paragraph, or is otherwise agreed between the Governments of the Contracting States through an exchange of diplomatic notes.
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.
With reference to Article 26 (Non-Discrimination) of the Convention:
The provisions of the Article shall not apply to the following provisions of the laws of Australia:
(a) Subdivision A of Division 3 of Part III of the Income Tax Assessment Act 1936 (hereinafter referred to as " ITAA 1936 " ), which provides deductions to eligible taxpayers for research and development;
(b) Section 26-25 of Part 2-5 of Chapter 2 of the Income Tax Assessment Act 1997 (hereinafter referred to as " ITAA 1997 " ), which provides measures to ensure that taxes can be effectively collected and recovered, including conservancy measures under the general law; and
(c) any provision adopted after the date of signature of the Convention which is substantially similar in purpose or intent to a provision covered by this paragraph, or is otherwise agreed between the Governments of the Contracting States through an exchange of diplomatic notes.
This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.