AUSTRALIAN TAX TREATIES

Canadian Convention  

PROTOCOL AMENDING THE CONVENTION BETWEEN AUSTRALIA AND CANADA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME  

ARTICLE 10  

1.  
Paragraph (3) of Article 12 of the Convention shall be deleted and replaced by the following:


" (3)
The term " royalties " as used in this Article means payments or credits, whether periodical or not, and however described or computed, to the extent to which they are made as consideration for:


(a) the use of, or the right to use, any copyright, patent, design or model, plan, secret formula or process, trade mark or other like property or right; or


(b) the use of, or the right to use, any industrial, commercial or scientific equipment; or


(c) the supply of scientific, technical, industrial or commercial knowledge or information; or


(d) the supply of any assistance that is ancillary and subsidiary to, and is furnished as a means of enabling the application or enjoyment of, any such property or right as is mentioned in subparagraph (a), any such equipment as is mentioned in subparagraph (b) or any such knowledge or information as is mentioned in subparagraph (c); or


(e) the use of, or the right to use:


(i) motion picture films; or

(ii) films or videotapes or other means of reproduction for use in connection with television; or

(iii) tapes for use in connection with radio broadcasting; or


(f) total or partial forbearance in respect of the use or supply of any property or right referred to in this paragraph. " .

2.  
A new paragraph (7) shall be added to Article 12 of the Convention as follows:


" (7)
Without prejudice to whether or not such payments would be dealt with as royalties under this Article in the absence of this paragraph, the term " royalties " as used in this Article shall not include payments or credits made as consideration for the supply of, or the right to use, source code in a computer software program, provided that the right to use the source code is limited to such use as is necessary to enable effective operation of the program by the user. " .

3.  
A new paragraph (8) shall be added to Article 12 of the Convention as follows:


" (8)
Without prejudice to whether or not such payments would be dealt with as royalties under this Article in the absence of this paragraph, the term " royalties " as used in this Article shall include payments or credits, whether periodical or not, and however described or computed, to the extent to which they are made as consideration for:


(a) the reception of, or the right to receive, visual images or sounds, or both, that are transmitted to the public by satellite or by cable, optic fibre or similar technology; or


(b) the use of, or the right to use, in connection with television or radio broadcasting, visual images or sounds, or both, that are transmitted by satellite or by cable, optic fibre or similar technology; or


(c) total or partial forbearance in respect of the use or supply of any property or right referred to in this paragraph. " .




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