AUSTRALIAN TAX TREATIES

German Agreement  

AGREEMENT BETWEEN AUSTRALIA AND THE FEDERAL REPUBLIC OF GERMANY FOR THE ELIMINATION OF DOUBLE TAXATION WITH RESPECT TO TAXES ON INCOME AND ON CAPITAL AND THE PREVENTION OF FISCAL EVASION AND AVOIDANCE  

7  
With reference to paragraph 3 of Article 23 and paragraph 5 of Article 25

(1)  
For the purposes of paragraph 3 of Article 23 and paragraph 5 of Article 25 , provisions of the laws of a Contracting State which are designed to prevent evasion or avoidance of taxes include:


(a) measures designed to prevent improper use of the provisions of tax agreements;


(b) measures designed to address thin capitalisation, dividend stripping and transfer pricing;


(c) in the case of Australia, controlled foreign company, transferor trusts and foreign investment fund rules; and


(d) measures designed to ensure that taxes can be effectively collected and recovered, including conservancy measures.

(2)  
If the application of the foregoing provisions results in double taxation, the competent authorities of the Contracting States shall consult each other pursuant to Article 25 to find an appropriate solution.




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