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.
Where, except for the application of this Article, a fringe benefit is taxable in both Contracting States the benefit will be taxable only in the Contracting State which would have the primary taxing right over that benefit if the value of the benefit were paid to the employee as ordinary employment income. 2
For the purposes of this Article:
(a) " fringe benefit " has the meaning it has under Australia ' s Fringe Benefits Tax Assessment Act 1986 (Commonwealth) , as it may be amended from time to time, and does not include a benefit arising from the acquisition of an option over shares under an employee share scheme;
(b) a Contracting State has a " primary taxing right " to the extent that it has a taxing right under this Convention in respect of the remuneration for the relevant employment and the other Contracting State is required under this Convention to allow relief for any taxes imposed in respect of such remuneration by the first-mentioned Contracting State.