SECTION 1
1
SHORT TITLE
This Act may be cited as the
International Tax Agreements Act 1953.
History
S 1 amended by No 22 of 1995.
SECTION 2
2
COMMENCEMENT
This Act shall come into operation on the day on which it receives the Royal Assent.
SECTION 3
INTERPRETATION
3(1)
In this Act:
agreement
means a treaty or other agreement described in section 3AAA (about current agreements) or 3AAB (about agreements for earlier periods).
Note:
Most of the conventions, protocols and other agreements described in these sections are set out in the Australian Treaty Series. In 2023, the text of an agreement in the Australian Treaty Series was accessible through the Australian Treaties Library on the AustLII website (www.austlii.edu.au).
History
Definition of "agreement" amended by No 40 of 2023, s 3 and Sch 1 item 3, by substituting "2023" for "2011" in the note, effective 29 June 2023.
Assessment Act
means the Income Tax Assessment Act 1936 or the Income Tax Assessment Act 1997.
Australian tax
means:
(a)
income tax imposed as such by an Act; or
(b)
fringe benefits tax imposed by the
Fringe Benefits Tax Act 1986.
Note:
This includes Medicare levy (see subsection (10)).
foreign tax
means tax, other than Australian tax, which is the subject of an agreement.
prescribed trust estate
, in relation to a year of income, means a trust estate that is a public trading trust, within the meaning of Division 6C of Part III of the Income Tax Assessment Act 1936, in relation to the year of income.
History
Definition of "prescribed trust estate" substituted by No 53 of 2016, s 3 and Sch 5 item 71, applicable to assessments for income years starting on or after 1 July 2016. No 53 of 2016 (as amended by No 15 of 2019), s 3 and Sch 5 Pt 4 contains the following transitional provision:
Part 4 - Transitional
75 Transitional rule for 20% tracing requirement and repeal of Division 6B - imputation
(1)
This item applies if at a time (the
cessation time
), on or after the commencement of this Schedule, either:
(a)
section 102K of the Income Tax Assessment Act 1936 ceases to apply to the trustee of a trust because of the repeal of that section by Part 2 of this Schedule; or
(b)
section 102S of that Act ceases to apply to the trustee of a trust because of the amendment made by Part 1 of this Schedule.
(2)
Subitems (3) and (3A) apply applies if:
(a)
an event happens in respect of the trust that is described in:
(i)
the table in subsection 205-15(1) of the Income Tax Assessment Act 1997; or
(ii)
the table in subsection 205-30(1) of that Act; and
(b)
the event happens on or after the cessation time but before 1 July 2019; and
(c)
the event is:
(i)
the trust paying income tax for an income year starting before 1 July 2016; or
(ii)
the trust paying a PAYG instalment in respect of income tax for an income year starting before 1 July 2016; or
(iii)
the trust receiving a refund of income tax for an income year starting before 1 July 2016; or
(iv)
the trust franking a distribution; or
(v)
the trust ceasing to be a franking entity.
History
S 75(2) amended by No 15 of 2019, s 3 and Sch 1 items 34-36, by substituting "Subitems (3) and (3A) apply" for "Subitem (3) applies", "1 July 2019" for "1 July 2018" in para (b) and inserting para (c)(v), applicable in relation to the 2018-19 income year and later income years.
(2A)
However, subparagraph (2)(c)(v) does not apply unless the trust's franking account is in surplus immediately before the trust ceases to be a franking entity.
History
S 75(2A) inserted by No 15 of 2019, s 3 and Sch 1 item 37, applicable in relation to the 2018-19 income year and later income years.
(3)
For the purposes of determining whether a franking credit or franking debit arises in the trust's franking account as a result of the event:
(a)treat the trust as a corporate tax entity at the time the event happens; and
(b)
treat the trust as satisfying the residency requirement in section 205-25 of the Income Tax Assessment Act 1997 for the income year in which the event happens.
(3A)
If the event is an event described in item 4 of the table in subsection 205-30(1) of the Income Tax Assessment Act 1997, treat the event as happening on 1 July 2019.
History
S 75(3A) inserted by No 15 of 2019, s 3 and Sch 1 item 38, applicable in relation to the 2018-19 income year and later income years.
(4)
Subitems (5) and (6) apply if:
(a)
the trust makes a distribution on or after the cessation time but before 1 July 2019; and
(b)
the trust's franking account is in surplus just before the trust makes the distribution; and
(c)
the distribution is not made out of income derived in relation to the 2016-17 income year or a later income year.
History
S 75(4) amended by No 15 of 2019, s 3 and Sch 1 items 39-41, by substituting "Subitems (5) and (6) apply" for "Subitem (5) applies", "1 July 2019" for "1 July 2018" in para (a) and inserting para (c), applicable in relation to the 2018-19 income year and later income years.
(5)
For the purposes of determining whether the trust franks the distribution as a result of the event:
(a)
treat the trust as a corporate tax entity at the time it makes the distribution; and
(b)
treat the trust as satisfying the residency requirement in section 202-20 of the Income Tax Assessment Act 1997 at the time it makes the distribution.
Note:
As a result, the trust will satisfy the requirement in paragraph 202-5(a) of that Act in respect of the distribution. If the other requirements in section 202-5 of that Act are satisfied in respect of the distribution, this means that the trust franks the distribution.
(6)
Treat a beneficiary of the trust who receives the distribution as receiving, for the purposes of the income tax law, a dividend from a corporate tax entity.
History
S 75(6) inserted by No 15 of 2019, s 3 and Sch 1 item 42, applicable in relation to the 2018-19 income year and later income years.
The definition formerly read:
prescribed trust estate
, in relation to a year of income, means a trust estate that:
(a)
is a corporate unit trust, within the meaning of Division 6B of Part III of the Income Tax Assessment Act 1936, in relation to the year of income; or
(b)
is a public trading trust, within the meaning of Division 6C of Part III of that Act, in relation to the year of income.
History
History
Definition of "the South African agreement" amended by No 111 of 2008 and inserted by No 149 of 1999.
S 3(1) substituted by No 45 of 2011, s 3 and Sch 1 item 2, effective 27 June 2011. S 3(1) formerly read:
3(1)
In this Act, unless the contrary intention appears:
agreement
means:
(a)
a convention or agreement a copy of which is set out in a Schedule to this Act; or
(b)
the 1946 United Kingdom agreement; or
(ba)
the 1967 United Kingdom agreement; or
(bb)
the 1967 United Kingdom agreement as amended by the 1980 Protocol to the 1967 United Kingdom agreement; or
(bc)
the 1969 French airline profits agreement; or
(bd)
the 1976 French agreement; or
(be)
the 1976 French agreement as amended by the 1989 French protocol; or
(c)
the 1960 New Zealand agreement; or
(ca)
the 1972 New Zealand agreement; or
(caa)
the 1995 New Zealand agreement; or
(cab)
the 1995 New Zealand agreement as amended by the 2005 New Zealand protocol; or
(cb)
the 1982 Norwegian convention; or
(cc)
the 1984 Finnish agreement; or
(cd)
the 1984 Finnish agreement as amended by the 1997 Finnish protocol; or
(d)
the previous Canadian agreement; or
(e)
the previous United States convention; or
(f)
the 1969 Japanese agreement.
History
Definition of "agreement" amended by No 13 of 2010, s 3 and Sch 1 item 3, by inserting paras (caa) and (cab), effective 11 March 2010.
Definition of "agreement" amended by No 102 of 2008, s 3 and Sch 1 item 1 by inserting "or" at the end of paragraphs (a) to (cd) and item 2, by inserting para (f), effective 3 October 2008.
Definition of "agreement" amended by No 146 of 2007, s 3 and Sch 1 item 1, by inserting paras (cc) and (cd), effective 24 September 2007.
Definition of "agreement" amended by No 136 of 2007, s 3 and Sch 1 item 1, by inserting paras (bc), (bd) and (be), and Sch 2 item 1, by inserting para (cb), effective 3 September 2007.
Definition of "agreement" amended No 123 of 2003, by No 22 of 1995.
Australian tax
means:
(a)
income tax imposed as such by an Act; or
(b)
fringe benefits tax imposed by the Fringe Benefits Tax Act 1986.
History
Definition of "Australian tax" substituted by No 22 of 1995.
calendar year
means a year commencing on 1 January.
foreign tax
means tax, other than Australian tax, which is the subject of an agreement.
prescribed trust estate
, in relation to a year of income, means a trust estate that:
(a)
is a corporate unit trust, within the meaning of Division 6B of Part III of the Assessment Act, in relation to the year of income; or
(b)
is a public trading trust, within the meaning of Division 6C of Part III of the Assessment Act, in relation to the year of income.
History
Definition of "prescribed trust estate" inserted by No 173 of 1985.
the 1946 United Kingdom agreement
means the Agreement between the Government of Australia and the Government of the United Kingdom for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income that was signed at London on 29 October 1946.
History
Definition of "the 1946 United Kingdom agreement" inserted by No 123 of 2003.
the 1960 New Zealand agreement
means the Agreement between the Government of Australia and the Government of New Zealand for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income that was signed at Canberra on 12 May 1960.
History
Definition of "the 1960 New Zealand agreement" relocated to appropriate alphabetical position by No 8 of 2010, s 3 and Sch 1 item 35, effective 1 March 2010.
Definition of "the 1960 New Zealand agreement" inserted by No 22 of 1995.
the 1967 United Kingdom agreement
means the Agreement between the Government of the Commonwealth of Australia and the Government of the United Kingdom of Great Britain and Northern Ireland for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital gains that was signed at Canberra on 7 December 1967.
History
Definition of "the 1967 United Kingdom agreement" inserted by No 123 of 2003.
the 1969 French airline profits agreement
means the Agreement between the Government of Australia and the Government of the French Republic for the avoidance of double taxation of income derived from international air transport that was signed at Canberra on 27 March 1969.
History
Definition of "the 1969 French airline profits agreement" inserted by No 136 of 2007, s 3 and Sch 1 item 2, effective 3 September 2007.
the 1969 Japanese agreement
means the Agreement between the Government of the Commonwealth of Australia and the Government of Japan for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and the protocol to that agreement, being the agreement and protocol that was signed at Canberra on 20 March 1969.
History
Definition of "the 1969 Japanese agreement" inserted by No 102 of 2008, s 3 and Sch 1 item 3, effective 3 October 2008.
the 1972 New Zealand agreement
means the Agreement between the Government of Australia and the Government of New Zealand for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income that was signed at Melbourne on 8 November 1972.
History
Definition of "the 1972 New Zealand agreement" relocated to appropriate alphabetical position by No 8 of 2010, s 3 and Sch 1 item 35, effective 1 March 2010.
Definition of "the 1972 New Zealand agreement" inserted by No 22 of 1995.
the 1976 French agreement
means the Agreement between the Government of Australia and the Government of the French Republic for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income that was signed at Canberra on 13 April 1976.
History
Definition of "the 1976 French agreement" inserted by No 136 of 2007, s 3 and Sch 1 item 3, effective 3 September 2007.
the 1980 Protocol to the 1967 United Kingdom agreement
means the Protocol, signed at Canberra on 29 January 1980, between the Government of the Commonwealth of Australia and the Government of the United Kingdom of Great Britain and Northern Ireland amending the 1967 United Kingdom agreement.
History
Definition of "the 1980 Protocol to the 1967 United Kingdom agreement" inserted by No 123 of 2003.
the 1982 Norwegian convention
means the Convention between Australia and the Kingdom of Norway for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital and the protocol to that convention, being the convention and protocol that were signed at Canberra on 6 May 1982.
History
Definition of "the 1982 Norwegian convention" inserted by No 136 of 2007, s 3 and Sch 2 item 2, effective 3 September 2007.
the 1984 Finnish agreement
means the Agreement between Australia and Finland for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and the protocol to that agreement, being the agreement and protocol that were signed at Canberra on 12 September 1984.
History
Definition of "the 1984 Finnish agreement" inserted by No 146 of 2007, s 3 and Sch 1 item 2, effective 24 September 2007.
the 1989 French protocol
means the Protocol, signed at Paris on 19 June 1989, between the Government of Australia and the Government of the French Republic amending the 1976 French agreement.
History
Definition of "the 1989 French protocol" inserted by No 136 of 2007, s 3 and Sch 1 item 4, effective 3 September 2007.
the 1995 New Zealand agreement
means the Agreement between the Government of Australia and the Government of New Zealand for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the agreement signed at Melbourne on 27 January 1995.
History
Definition of "the 1995 New Zealand agreement" inserted by No 13 of 2010, s 3 and Sch 1 item 4, effective 11 March 2010.
the 1997 Finnish protocol
means the Protocol, signed at Canberra on 5 November 1997, between Australia and Finland amending the 1984 Finnish agreement.
History
Definition of "the 1997 Finnish protocol" inserted by No 146 of 2007, s 3 and Sch 1 item 3, effective 24 September 2007.
the 2003 United Kingdom convention
means the Convention between the Government of Australia and the Government of the United Kingdom of Great Britain and Northern Ireland for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital gains, as affected by the 2003 United Kingdom notes. A copy of the convention and of the notes is set out in Schedule 1.
History
Definition of "the 2003 United Kingdom convention" inserted by No 123 of 2003.
the 2003 United Kingdom notes
means the exchange of notes between the Government of Australia and the Government of the United Kingdom of Great Britain and Northern Ireland in connection with the 2003 United Kingdom convention that was carried out at Canberra on 21 August 2003. A copy of the notes is set out in Schedule 1.
History
Definition of "the 2003 United Kingdom notes" inserted by No 123 of 2003.
the 2005 New Zealand protocol
means the Protocol, signed at Melbourne on 15 November 2005, between the Government of Australia and the Government of New Zealand amending the 1995 New Zealand agreement.
History
Definition of "the 2005 New Zealand protocol" inserted by No 13 of 2010, s 3 and Sch 1 item 5, effective 11 March 2010.
the 2006 Finnish agreement
means the Agreement between the Government of Australia and the Government of Finland for the avoidance of double taxation with respect to taxes on income and the prevention of fiscal evasion and the protocol to that agreement, being the agreement and protocol a copy of each of which in the English language is set out in Schedule 25.
History
Definition of "the 2006 Finnish agreement" inserted by No 146 of 2007, s 3 and Sch 1 item 4, effective 24 September 2007.
the 2006 French convention
means the Convention between the Government of Australia and the Government of the French Republic for the avoidance of double taxation with respect to taxes on income and the prevention of fiscal evasion and the protocol to that convention, being the convention and protocol a copy of each of which in the English language is set out in Schedule 11.
History
Definition of "the 2006 French convention" inserted by No 136 of 2007, s 3 and Sch 1 item 5, effective 3 September 2007.
the 2006 Norwegian convention
means the Convention between Australia and the Kingdom of Norway for the avoidance of double taxation with respect to taxes on income and the prevention of fiscal evasion, being the convention a copy of which is set out in Schedule 23.
History
Definition of "the 2006 Norwegian convention" inserted by No 136 of 2007, s 3 and Sch 2 item 3, effective 3 September 2007.
the 2008 Japanese convention
means the Convention between Australia and Japan for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and the protocol to that convention, being the convention and protocol a copy of each of which in the English language is set out in Schedule 6.
History
Definition of "the 2008 Japanese convention" inserted by No 102 of 2008, s 3 and Sch 1 item 4, effective 3 October 2008.
the 2009 New Zealand convention
means the Convention between Australia and New Zealand for the avoidance of double taxation with respect to taxes on income and fringe benefits and the prevention of fiscal evasion, being the convention a copy of which is set out in Schedule 4.
History
Definition of "the 2009 New Zealand convention" inserted by No 13 of 2010, s 3 and Sch 1 item 6, effective 11 March 2010.
the Argentine agreement
means the Agreement between the Government of Australia and the Government of the Argentine Republic for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and the protocol to that agreement, being the agreement and protocol a copy of each of which in the English language is set out in Schedule 44.
History
Definition of "the Argentine agreement" inserted by No 149 of 1999.
the Assessment Act
means the Income Tax Assessment Act 1936 or the Income Tax Assessment Act 1997.
History
Definition of "the Assessment Act" amended by No 39 of 1997 and substituted by No 11 of 1973.
the Austrian agreement
means the Agreement between Australia and the Republic of Austria for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the agreement a copy of which in the English language is set out in Schedule 27.
History
Definition of "the Austrian agreement" inserted by No 112 of 1986.
the Belgian agreement
means the Agreement between Australia and the Kingdom of Belgium for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income (being the agreement a copy of which in the English language is set out in Schedule 13), as amended by the first and second Belgian protocols.
History
Definition of "the Belgian agreement" amended by No 13 of 2010, s 3 and Sch 1 item 7, by substituting "first and second Belgian protocols" for "Belgian protocol", effective 11 March 2010.
Definition of "the Belgian agreement" substituted by No 125 of 1984 and inserted by No 134 of 1977.
the Belgian protocol
(Repealed by No 13 of 2010)
History
Definition of "the Belgian protocol" repealed by No 13 of 2010, s 3 and Sch 1 item 8, effective 11 March 2010. The definition formerly read:
the Belgian protocol
means the Protocol amending the Agreement between Australia and the Kingdom of Belgium for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the protocol a copy of which in the English language is set out in Schedule 13A;
Definition of "the Belgian protocol" inserted by No 125 of 1984.
the British Virgin Islands agreement
means the Agreement between the Government of Australia and the Government of the British Virgin Islands for the allocation of taxing rights with respect to certain income of individuals, being the agreement a copy of which is set out in Schedule 48.
History
Definition of "the British Virgin Islands agreement" inserted by No 105 of 2009, s 3 and Sch 1 item 1, effective 8 October 2009.
the Canadian convention
means the Convention between the Government of Australiaand the Government of Canada for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the convention a copy of which in the English language is set out in Schedule 3, as amended by the Canadian protocol.
History
Definition of "the Canadian convention" amended by No 129 of 2002 and inserted by No 127 of 1980.
the Canadian protocol
means the Protocol amending the Convention between the Government of Australia and the Government of Canada for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the protocol a copy of which in the English language is set out in Schedule 3A.
History
Definition of "the Canadian protocol" inserted by No 129 of 2002.
the Chinese agreement
means the Agreement between the Government of Australia and the Government of the People's Republic of China for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the agreement a copy of which in the English language is set out in Schedule 28.
History
Definition of "the Chinese agreement" inserted by No 121 of 1990.
the Chinese airline profits agreement
means the Agreement between the Government of Australia and the Government of the People's Republic of China for the avoidance of double taxation of income and revenues derived by air transport enterprises from international air transport, being the agreement a copy of which in the English language is set out in Schedule 26.
History
Definition of "the Chinese airline profits agreement" inserted by No 46 of 1986.
the Czech agreement
means the Agreement between Australia and the Czech Republic for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the agreement a copy of which in the English language is set out in Schedule 40.
History
Definition of "the Czech agreement" inserted by No 127 of 1995.
the Danish agreement
means the Agreement between the Government of Australia and the Government of the Kingdom of Denmark for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the agreement a copy of which is set out in Schedule 18.
History
Definition of "the Danish agreement" inserted by No 143 of 1981.
the Fijian agreement
means the Agreement between Australia and Fiji for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the agreement a copy of which is set out in Schedule 32.
History
Definition of "the Fijian agreement" inserted by No 121 of 1990.
the Finnish agreement
(Repealed by No 146 of 2007)
History
Definition of "the Finnish agreement" repealed by No 146 of 2007, s 3 and Sch 1 item 5, effective 24 September 2007. The definition formerly read:
the Finnish agreement
means the Agreement between Australia and Finland for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and the protocol to that agreement, being the agreement and protocol a copy of each of which in the English language is set out in Schedule 25, as amended by the second Finnish protocol;
Definition of "the Finnish agreement" amended by No 100 of 2000 and inserted by No 168 of 1985.
the first Belgian protocol
means the Protocol, signed 20 March 1984, amending the Agreement between Australia and the Kingdom of Belgium for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the protocol a copy of which in the English version is set out in Schedule 13A.
History
Definition of "the first Belgian protocol" inserted by No 13 of 2010, s 3 and Sch 1 item 9, effective 11 March 2010.
the first Malaysian protocol
means the Protocol, signed 2 August 1999, amending the Agreement between Australia and Malaysia for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the protocol a copy of which in the English language is set out in Schedule 16A.
History
Definition of "the first Malaysian protocol" inserted by No 129 of 2002.
the first Singapore protocol
means the Protocol amending the Agreement between the Government of the Commonwealth of Australia and the Government of the Republic of Singapore for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the protocol a copy of which is set out in Schedule 5A.
History
Definition of "the first Singapore protocol" inserted by No 115 of 2010, s 3 and Sch 1 item 1, effective 9 November 2010.
the French agreement
(Repealed by No 136 of 2007)
History
Definition of "the French agreement" repealed by No 136 of 2007, s 3 and Sch 1 item 6, effective 3 September 2007. The definition formerly read:
the French agreement
means the Agreement between the Government of Australia and the Government of the French Republic for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the agreement a copy of which in the English language is set out in Schedule 11, as amended by the French protocol;
Definition of "the French agreement" amended by No 165 of 1989 and inserted by No 52 of 1976.
the French airline profits agreement
(Repealed by No 136 of 2007)
History
Definition of "the French airline profits agreement" repealed by No 136 of 2007, s 3 and Sch 1 item 7, effective 3 September 2007. The definition formerly read:
the French airline profits agreement
means the Agreement between the Government of Australia and the Government of the French Republic for the avoidance of double taxation of income derived from international air transport, being the agreement a copy of which in the English language is set out in Schedule 7;
the French protocol
(Repealed by No 136 of 2007)
History
Definition of "the French protocol" repealed by No 136 of 2007, s 3 and Sch 1 item 8, effective 3 September 2007. The definition formerly read:
the French protocol
means the Protocol amending the Agreement between the Government of Australia and the Government of the French Republic for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the protocol a copy of which in the English language is set out in Schedule 11A;
Definition of "the French protocol" inserted by No 165 of 1989.
the German agreement
means the Agreement between the Government of Australia and the Government of the Federal Republic of Germany for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital and to certain other taxes and the protocol to that agreement, being the agreement and protocol a copy of each of which in the English language is set out in Schedule 9.
History
Definition of "the German agreement" inserted by No 129 of 1974.
the Greek agreement
(Repealed by No 129 of 2002)
History
Definition of "the Greek agreement" inserted by No 134 of 1977.
the Greek airline profits agreement
means the Agreement between the Government of Australia and the Government of the Hellenic Republic for the avoidance of double taxation of income derived from international air transport, being the agreement a copy of which is set out in the English language in Schedule 12.
History
Definition of "the Greek airline profits agreement" inserted by No 129 of 2002.
the Hungarian agreement
means the Agreement between Australia and the Republic of Hungary for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the agreement a copy of which in the English language is set out in Schedule 33.
History
Definition of "the Hungarian agreement" inserted by No 96 of 1991.
the Indian agreement
means the Agreement between the Government of Australia and the Government of the Republic of India for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the agreement a copy of which in the English language is set out in Schedule 35.
History
Definition of "the Indian agreement" inserted by No 214 of 1991.
the Indian airline profits agreement
(Omitted by No 139 of 1992)
History
Definition of "the Indian airline profits agreement" inserted by No 57 of 1983.
the Indonesian agreement
means the Agreement between the Government of Australia and the Government of the Republic of Indonesia for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the agreement a copy of which is set out in Schedule 37.
History
Definition of "the Indonesian agreement" inserted by No 139 of 1992.
the Irish agreement
means the Agreement between the Government of Australia and the Government of Ireland for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital gains, being the agreement a copy of which is set out in Schedule 20.
History
Definition of "the Irish agreement" inserted by No 57 of 1983.
the Isle of Man agreement
means the Agreement between the Government of Australia and the Government of the Isle of Man for the allocation of taxing rights with respect to certain income of individuals and to establish a mutual agreement procedure in respect of transfer pricing adjustments, being the agreement a copy of which is set out in Schedule 49.
History
Definition of "the Isle of Man agreement" inserted by No 105 of 2009, s 3 and Sch 1 item 2, effective 8 October 2009.
the Italian agreement
(Omitted by No 57 of 1983)
the Italian airline profits agreement
means the Agreement between the Government of Australia and the Government of Italy for the avoidance of double taxation of income derived from international air transport, being the agreement a copy of which in the English language is set out in Schedule 8.
History
Definition of "the Italian airline profits agreement" inserted by No 57 of 1983.
the Italian convention
means the Convention between Australia and the Republic of Italy for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and the protocol to that convention, being the convention and protocol a copy of each of which in the English language is set out in Schedule 21.
History
Definition of "the Italian convention" inserted by No 57 of 1983.
the Japanese agreement
(Repealed by No 102 of 2008)
History
Definition of "the Japanese agreement" repealed by No 102 of 2008, s 3 and Sch 1 item 5, effective 3 October 2008. The definition formerly read:
the Japanese agreement
means the Agreement between the Government of Australia and the Government of Japan for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and the protocol to that agreement, being the agreement and protocol a copy of each of which in the English language is set out in Schedule 6;
the Jersey agreement
means the Agreement between the Government of Australia and the Government of Jersey for the allocation of taxing rights with respect to certain income of individuals and to establish a mutual agreement procedure in respect of transfer pricing adjustments, being the agreement a copy of which is set out in Schedule 50.
History
Definition of "the Jersey agreement" inserted by No 13 of 2010, s 3 and Sch 1 item 10, effective 11 March 2010.
the Kiribati agreement
means the Agreement between Australia and the Republic of Kiribati for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the agreement a copy of which is set out in Schedule 34.
History
Definition of "the Kiribati agreement" inserted by No 96 of 1991.
the Korean convention
means the Convention between the Government of Australia and the Government of the Republic of Korea for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and the protocol to that convention, being the convention and protocol a copy of each of which in the English language is set out in Schedule 22.
History
Definition of "the Korean convention" inserted by No 57 of 1983.
the Malaysian agreement
means the Agreement between Australia and Malaysia for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the agreement a copy of which is set out in the English language in Schedule 16, as amended by the first and second Malaysian protocols.
History
Definition of "the Malaysian agreement" substituted by No 129 of 2002 and inserted by No 28 of 1981.
the Malaysian protocol
(Repealed by No 129 of 2002)
History
Definition of "the Malaysian protocol" inserted by No 149 of 1999.
the Maltese agreement
means the Agreement between Australia and Malta for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the agreement a copy of which is set out in Schedule 24.
History
Definition of "the Maltese agreement" inserted by No 125 of 1984.
the Mexican agreement
means the Agreement between the Government of Australia and the Government of the United Mexican States for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income as affected by the protocol to that agreement. A copy of the agreement, and of the protocol, in the English language is set out in Schedule 47.
History
Definition of "the Mexican agreement" inserted by No 123 of 2003.
the Netherlands agreement
means the Agreement between the Government of Australia and the Government of the Kingdom of the Netherlands for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and the protocol to that agreement, being the agreement and protocol a copy of each of which in the English language is set out in Schedule 10, as amended by the second Netherlands protocol.
History
Definition of "the Netherlands agreement" substituted by No 112 of 1986.
the New Zealand agreement
(Repealed by No 13 of 2010)
History
Definition of "the New Zealand agreement" repealed by No 13 of 2010, s 3 and Sch 1 item 11, effective 11 March 2010. The definition formerly read:
the New Zealand agreement
means the Agreement between the Government of Australia and the Government of New Zealand for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the agreement a copy of which is set out in Schedule 4, as amended by the New Zealand protocol;
Definition of "the New Zealand agreement" amended by No 100 of 2006, s 3 and Sch 3 item 1, by inserting ", as amended by the New Zealand protocol" at the end, effective 14 September 2006.
Definition of "the New Zealand agreement" inserted by No 11 of 1973.
the New Zealand protocol
(Repealed by No 13 of 2010)
History
Definition of "the New Zealand protocol" repealed by No 13 of 2010, s 3 and Sch 1 item 12, effective 11 March 2010. The definition formerly read:
the New Zealand protocol
means the Protocol amending the Agreement between the Government of Australia and the Government of New Zealand for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income. A copy of the protocol is set out in Schedule 4A.
Definition of "the New Zealand protocol" inserted by No 100 of 2006, s 3 and Sch 3 item 2, effective 14 September 2006.
the Norwegian convention
(Repealed by No 136 of 2007)
History
Definition of "the Norwegian convention" repealed by No 136 of 2007, s 3 and Sch 2 item 4, effective 3 September 2007. The definition formerly read:
the Norwegian convention
means the Convention between Australia and the Kingdom of Norway for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital and the protocol to that convention, being the convention and protocol a copy of each of which is set out in Schedule 23;
Definition of "the Norwegian convention" inserted by No 57 of 1983.
the Papua New Guinea agreement
means the Agreement between Australia and the Independent State of Papua New Guinea for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the agreement a copy of which is set out in Schedule 29.
History
Definition of "the Papua New Guinea agreement" inserted by No 165 of 1989.
the Philippine agreement
means the Agreement between the Government of Australia and the Government of the Republic of the Philippines for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the agreement a copy of which is set out in Schedule 14.
History
Definition of "the Philippine agreement" inserted by No 23 of 1980.
the Polish agreement
means the Agreement between Australia and the Republic of Poland for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the agreement a copy of which in the English language is set out in Schedule 36.
History
Definition of "the Polish agreement" inserted by No 214 of 1991.
the previous Canadian agreement
means the Agreement between the Government of Australia and the Government of Canada for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income that was signed at Mont Tremblant on 1 October 1957.
History
Definition of "the previous Canadian agreement" inserted by No 127 of 1980.
the previous New Zealand agreement
(Omitted by No 22 of 1995)
History
Definition of "the previous New Zealand agreement" inserted by No 11 of 1973.
the previous United Kingdom agreement
(Repealed by No 123 of 2003)
the previous United States convention
means the Convention between the Government of Australia and the Government of the United States of America for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income that was signed at Washington on 14 May 1953.
History
Definition of "the previous United States convention" inserted by No 57 of 1983.
the Romanian agreement
means the Agreement between Australia and Romania for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and the protocol to that agreement, being the agreement and protocol a copy of each of which in the English language is set out in Schedule 45.
History
Definition of "the Romanian agreement" inserted by No 100 of 2000.
the Russian agreement
means the Agreement between the Government of Australia and the Government of the Russian Federation for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and the protocol to that agreement, being the agreement and protocol a copy of each of which in the English language is set out in Schedule 46.
History
Definition of "the Russian agreement" inserted by No 59 of 2002.
the second Belgian protocol
means the Protocol, signed 24 June 2009, amending the Agreement between Australia and the Kingdom of Belgium for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the protocol a copy of which in the English version is set out in Schedule 13B.
History
Definition of "the second Belgian protocol" inserted by No 13 of 2010, s 3 and Sch 1 item 13, effective 11 March 2010.
the second Finnish protocol
(Repealed by No 146 of 2007)
History
Definition of "the second Finnish protocol" repealed by No 146 of 2007, s 3 and Sch 1 item 6, effective 24 September 2007. The definition formerly read:
the second Finnish protocol
means the Protocol to amend the agreement between Australia and Finland for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the protocol a copy of which in the English language is set out in Schedule 25A.
Definition of "the second Finnish protocol" inserted by No 100 of 2000.
the second Malaysian protocol
means the Protocol, signed 28 July 2002, amending the agreement between Australia and Malaysia for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the protocol a copy of which in the English language is set out in Schedule 16B.
History
Definition of "the second Malaysian protocol" inserted by No 129 of 2002.
the second Netherlands protocol
means the protocol a copy of which in the English language is set out in Schedule 10A, being the Second Protocol amending the Agreement between Australia and the Kingdom of the Netherlands for the avoidance of double taxation and the prevention of fiscal evasion with respect to tax on income with Protocol.
History
Definition of "the second Netherlands protocol" inserted by No 112 of 1986.
the second Singapore protocol
means the Protocol, signed 8 September 2009, amending the Agreement between the Government of the Commonwealth of Australia and the Government of the Republic of Singapore for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the protocol a copy of which is set out in Schedule 5B.
History
Definition of "the second Belgian protocol" inserted by No 13 of 2010, s 3 and Sch 1 item 13, effective 11 March 2010.
the Singapore agreement
means the Agreement between the Government of Australia and the Government of the Republic of Singapore for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the agreement a copy of which is set out in Schedule 5, as amended by the first Singapore protocol and the second Singapore protocol.
History
Definition of "the Singapore agreement" amended by No 115 of 2010, s 3 and Sch 1 item 3, by substituting "the first Singapore protocol and the second Singapore protocol" for "the Singapore protocol", effective 9 November 2010.
Definition of "the Singapore agreement" amended by No 165 of 1989.
the Singapore protocol
(Repealed by No 115 of 2010)
History
Definition of "the Singapore protocol" repealed by No 115 of 2010, s 3 and Sch 1 item 4, effective 9 November 2010. The definition formerly read:
the Singapore protocol
means the Protocol amending the Agreement between the Government of the Commonwealth of Australia and the Government of the Republic of Singapore for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the protocol a copy of which is set out in Schedule 5A;
Definition of "the Singapore protocol" inserted by No 165 of 1989.
the Slovak agreement
means the Agreement between Australia and the Slovak Republic for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the agreement a copy of which in the English language is set out in Schedule 43.
History
Definition of "the Slovak agreement" inserted by No 149 of 1999.
the South African agreement
means the Agreement between the Government of Australia and the Government of the Republic of South Africa for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and the protocol to that agreement, being the agreement and protocol a copy of each of which in the English language is set out in Schedule 42, as amended by the South African protocol.
History
Definition of "the South African agreement" amended by No 111 of 2008, s 3 and Sch 1 item 1, by inserting ", as amended by the South African protocol", effective 31 October 2008.
Definition of "the South African agreement" inserted by No 149 of 1999.
the South African protocol
means the Protocol amending the Agreement between the Government of Australia and the Government of the Republic of South Africa for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income. A copy of the protocol is set out in Schedule 42A.
History
Definition of "the South African protocol" inserted by No 111 of 2008, s 3 and Sch 1 item 2, effective 31 October 2008.
the Spanish agreement
means the Agreement between Australia and the Kingdom of Spain for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the agreement a copy of which in the English language is set out in Schedule 39.
History
Definition of "the Spanish agreement" inserted by No 139 of 1992.
the Sri Lankan agreement
means the Agreement between Australia and the Democratic Socialist Republic of Sri Lanka for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the agreement a copy of which in the English language is set out in Schedule 31.
History
Definition of "the Sri Lankan agreement" inserted by No 121 of 1990.
the Swedish agreement
means the Agreement between the Government of Australia and the Government of Sweden for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the agreement a copy of which in the English language is set out in Schedule 17.
History
Definition of "the Swedish agreement" inserted by No 28 of 1981.
the Swiss agreement
means the Agreement between the Government of Australia and the Swiss Federal Council for the avoidance of double taxation with respect to taxes on income and the protocol to that agreement, being the agreement and protocol a copy of each of which in the English language is set out in Schedule 15.
History
Definition of "the Swiss agreement" inserted by No 23 of 1980.
the Taipei agreement
means:
(a)
the Agreement between the Australian Commerce and Industry Office and the Taipei Economic and Cultural Office concerning the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income; and
(b)
the annex to that agreement;
a copy of each of which in the English language is set out in Schedule 41.
History
Definition of "the Taipei Agreement" inserted by No 39 of 1996.
the Thai agreement
means the Agreement between Australia and the Kingdom of Thailand for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the agreement a copy of which in the English language is set out in Schedule 30.
History
Definition of "the Thai agreement" inserted by No 165 of 1989.
the United Kingdom
(Repealed by No 123 of 2003)
the United Kingdom agreement
(Repealed by No 123 of 2003)
History
Definition of "the United Kingdom agreement" substituted by No 23 of 1980.
the United Kingdom protocol
(Repealed by No 123 of 2003)
History
Definition of "the United Kingdom protocol" inserted by No 23 of 1980.
the United States convention
means the Convention between the Government of Australia and the Government of the United States of America for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the convention a copy of which is set out in Schedule 2, as amended by the United States protocol.
History
Definition of "the United States convention" amended by No 59 of 2002.
the United States protocol
means the Protocol amending the Convention between the Government of Australia and the Government of the United States of America for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the protocol a copy of which is set out in Schedule 2A.
History
Definition of "the United States protocol" inserted by No 59 of 2002.
the Vietnamese agreement
means the Agreement between the Government of Australia and the Government of the Socialist Republic of Vietnam for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the agreement a copy of which in the English language is set out in Schedule 38, as amended by the Vietnamese notes.
History
Definition of "the Vietnamese agreement" amended by No 80 of 1997 and inserted by No 139 of 1992.
the Vietnamese notes
means the Exchange of Notes between the Government of Australia and the Government of the Socialist Republic of Vietnam amending the Vietnamese agreement, that was carried out on 22 November 1996. A copy of the Notes is set out in Schedule 38A.
History
Definition of "the Vietnamese notes" inserted by No 80 of 1997.
United Kingdom tax
(Repealed by No 123 of 2003)
Act No 45 of 2011, s 3 and Sch 1 items 70-72 contain the following transitional provisions:
Part 2 - Transitional provisions
70 Definitions
70
In this Part:
commencement day
means the day this Schedule commences [27 June 2011].
new Act
means the International Tax Agreements Act 1953 as amended by this Schedule.
old Act
means the International Tax Agreements Act 1953 as in force before the commencement day.
71 Transitional - amendments operate prospectively
(1)
This item applies to a provision of an agreement that has the force of law on the commencement day because of section 5 of the new Act.
(2)
Despite section 5 of the new Act, for each day before the commencement day, the provision of the agreement continues to have the force of law in accordance with the old Act.
72 Transitional - new description of agreements do not affect their legal operation
(1)
This item applies to a provision of an agreement that:
(a)
had the force of law under the old Act immediately before the commencement day; and
(b)
is not covered by section 5 or 5A of the new Act.
(2)
To avoid doubt, the provision continues to have the force of law, on and after the commencement day, under the new Act.
Note:
This means the changes made by this Schedule have no effect on the provision's legal operation.
S 3(1) amended by No 52 of 1976 and No 129 of 1974.
3(2)
For the purpose of this Act and the Assessment Act, a reference in an agreement to profits of an activity or business shall, in relation to Australian tax, be read, where the context so permits, as a reference to taxable income derived from that activity or business.
3(2A)
After the commencement of this subsection, a reference in an agreement to income from shares, or to income from other rights participating in profits, does not include a reference to a return on a debt interest (as defined in Subdivision
974-B of the
Income Tax Assessment Act 1997).
History
S 3(2A) inserted by No 123 of 2003.
3(3)
For the purposes of this Act, an amount of income derived by a person, being income other than interest or royalties, shall be deemed to be income attributable to interest or royalties, as the case may be:
(a)
if the person derived the amount of income by reason of being beneficially entitled to an amount representing the interest or royalties; or
(b)
if the person derived the amount of income as a beneficiary in a trust estate and the amount of income can be attributed, directly or indirectly, to the interest or royalties or to an amount that is to be deemed, by any application or successive applications of this subsection, to be an amount of income attributable to the interest or royalties.
3(4)
Where a beneficiary in a trust estate, other than a trust estate that is a prescribed trust estate, in relation to the year of income, is presently entitled to income of the trust estate, that income shall, for the purposes of this Act, be deemed to be an amount of income derived by the person.
History
S 3(4) amended by No 173 of 1985 and No 154 of 1981.
3(5)
To the extent that an agreement provides that the expression
immovable property
has the meaning it has under the law of Australia, that expression, for the purposes of that agreement, includes real property.
History
S 3(5) inserted by No 105 of 2014, s 3 and Sch 1 item 8, effective 24 September 2014.
Former s 3(5) repealed by No 143 of 2007, s 3 and Sch 1 item 206, applicable in relation to income years, statutory accounting periods and notional accounting periods starting on or after the first 1 July that occurs after 24 September 2007. S 3(5) formerly read:
3(5)
For the purposes of this Act:
(a)
all income that is passive income constitutes a single class of income; and
(b)
all income that is offshore banking income constitutes a single class of income; and
(c)
all income not being passive income or offshore banking income constitutes a single class of income; and
(d)
an amount of income that is deemed, for the purposes of any provision of this Act or of the Assessment Act, to be attributable to any other income, being income of a particular class, is to be taken to be income of that class.
Former s 3(5) and (6) substituted for s 3(5) by No 5 of 1991.
Former s 3(5) amended by No 51 of 1986 and No 129 of 1974.
3(6)
(Repealed by No 143 of 2007)
History
S 3(6) repealed by No 143 of 2007, s 3 and Sch 1 item 207, applicable in relation to income years, statutory accounting periods and notional accounting periods starting on or after the first 1 July that occurs after 24 September 2007. S 3(6) formerly read:
3(6)
An expression used in subsection (5) and in Division 18 of Part III of the Assessment Act has the same meaning in that subsection as it has in that Division.
S 3(5) and (6) substituted for s 3(5) by No 5 of 1991.
S 3(6) amended by No 51 of 1986 and No 129 of 1974.
3(7)
(Repealed by No 45 of 2011)
History
S 3(7) repealed by No 45 of 2011, s 3 and Sch 1 item 3, effective 27 June 2011. For transitional provisions see note under s 3(1). S 3(7) formerly read:
3(7)
For the purposes of this Act, the texts in the English language of the 1976 French agreement, the 2006 French convention and the 1969 Japanese agreement shall, unless the context otherwise requires, be construed as if:
(a)
words in the singular included the plural; and
(b)
words in the plural included the singular.
S 3(7) amended by No 102 of 2008, s 3 and Sch 1 item 6, by inserting "1969", effective 3 October 2008.
S 3(7) amended by No 136 of 2007, s 3 and Sch 1 item 9, by substituting "1976 French agreement, the 2006 French convention" for "French agreement", effective 3 September 2007.
3(7A)
(Repealed by No 45 of 2011)
History
S 3(7A) repealed by No 45 of 2011, s 3 and Sch 1 item 3, effective 27 June 2011. For transitional provisions see note under s 3(1). S 3(7A) formerly read:
3(7A)
For the purposes of this Act, a reference in the 1969 Japanese agreement to an area adjacent to Australia as specified in the Second Schedule to the Petroleum (Submerged Lands) Act 1967-1968 is tobe read as including a reference to an area adjacent to Australia as specified in Schedule 1 to the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
S 3(7A) amended by No 117 of 2008, s 3 and Sch 3 item 16, by substituting "Offshore Petroleum and Greenhouse Gas Storage Act 2006" for "Offshore Petroleum Act 2006", effective 22 November 2008.
S 3(7A) amended by No 102 of 2008, s 3 and Sch 1 item 7, by inserting "1969", effective 3 October 2008.
S 3(7A) inserted by No 17 of 2006, s 3 and Sch 2 item 43, effective 1 July 2008.
3(8)
Where, by virtue of a provision of an agreement, the expression
royalties
as used in, or in a particular provision of, that agreement has the meaning that that expression has under the law of Australia relating to income tax, that expression has, for the purposes of that agreement or of that particular provision, as the case may be, the meaning that that expression has by virtue of subsection
6(1) of the
Income Tax Assessment Act 1936.
History
S 3(8) amended by No 45 of 2011, s 3 and Sch 1 item 4, by substituting "6(1) of the Income Tax Assessment Act 1936" for "6(1) of the Assessment Act", effective 27 June 2011. For transitional provisions see note under s 3(1).
S 3(8) inserted by No 143 of 1976.
3(9)
Where, by virtue of a provision of an agreement, expressions used in, or in a particular provision of, that agreement and not otherwise defined for the purposes of that agreement or of that particular provision have the meanings that those expressions have under the law of Australia relating to income tax, subsection (8) does not affect the interpretation of that agreement or of that particular provision, as the case may be, in relation to the meaning of expressions other than the expression
royalties
.
History
S 3(9) inserted by No 143 of 1976.
3(10)
For the purposes of this Act, Medicare levy shall be deemed to be income tax and to be imposed as such and, unless the contrary intention appears, references to income tax or tax shall be construed accordingly.
History
S 3(10) inserted by No 51 of 1983.
3(11)
Where:
(a)
a beneficiary of a trust estate (not being a prescribed trust estate) who is a resident of a country with which, or with the government of which, Australia, or the Government of Australia, has made an agreement before the commencement of this subsection is presently entitled, either directly or through one or more interposed trust estates, to a share of the income of the trust estate derived from the carrying on by the trustee in Australia of a business through a permanent establishment in Australia; and
(b)
under the agreement, the income is to be dealt with in accordance with the article (in this subsection referred to as the
business profits article
) of the agreement relating to the taxing of income of an enterprise of a Contracting State where the enterprise carries on a business in the other Contracting State through a permanent establishment in the other Contracting State;
for the purpose of determining whether the beneficiary's share of the income may be taxed in Australia in accordance with the business profits article:
(c)
the beneficiary shall be deemed to carry on in Australia, through a permanent establishment in Australia, the business carried on in Australia by the trustee; and
(d)
the beneficiary's share of the income shall be deemed to be attributable to that permanent establishment.
History
S 3(11) amended by No 173 of 1985 and inserted by No 125 of 1984.
3(11A)
If:
(a)
the licensee of a spectrum licence (within the meaning of the
Radiocommunications Act 1992), or a person authorised under section 68 of that Act by the licensee, derives income from operating radiocommunications devices (within the meaning of that Act) under the licence or from authorising others to do so; and
(b)
the licensee or authorised person is a resident of a country (other than Australia), or a territory (other than an Australian-controlled territory), to whose residents an agreement applies; and
(c)
under the agreement, the income is to be dealt with in accordance with the business profits article of the agreement referred to in paragraph
3(11)(b);
for the purpose of determining whether the income may be taxed in Australia in accordance with the business profits article:
(d)
the licensee or authorised person is taken to carry on a business, through a permanent establishment, in Australia; and
(e)
the income is taken to be attributable to that permanent establishment.
History
S 3(11A) inserted by No 54 of 1999.
3(12)
In subsections (11) and (11A):
Contracting State
, in relation to an agreement, means a country which, or the government of which, is a party to the agreement.
corporate unit trust
(Repealed by No 173 of 1985)
income
includes profit.
permanent establishment
in relation to an agreement, has the same meaning as in the agreement.
History
S 3(12) amended by No 54 of 1999 and No 125 of 1984.
SECTION 3AAA
DEFINITIONS - CURRENT AGREEMENTS
3AAA(1)
In this Act:
Argentine agreement
means:
(a)
the Agreement between the Government of Australia and the Government of the Argentine Republic for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income; and
(b)
the protocol to that agreement;
each done at Buenos Aires on 27 August 1999.
Note:
The text of this agreement and protocol is set out in Australian Treaty Series 1999 No. 36 ([1999] ATS 36).
Aruban agreement
means the Agreement between the Government of Australia and the Kingdom of the Netherlands, in respect of Aruba, for the allocation of taxing rights with respect to certain income of individuals and to establish a mutual agreement procedure in respect of transfer pricing adjustments, done at Canberra on 16 December 2009.
Note:
The text of this agreement is set out in Australian Treaty Series 2011 No. 35 ([2011] ATS 35).
History
Definition of "Aruban agreement" amended by No 14 of 2013, s 3 and Sch 1 item 6, by substituting the note at the end, effective 27 March 2013. The note formerly read:
Note:
In 2011, the text of this agreement was accessible through the Australian Treaties Library on the AustLII website (www.austlii.edu.au).
Definition of "Aruban agreement" inserted by No 45 of 2011, s 3 and Sch 2 item 1, effective 27 June 2011.
Austrian agreement
means the Agreement between Australia and the Republic of Austria for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, done at Vienna on 8 July 1986.
Note 1:
The text of this agreement is set out in Australian Treaty Series 1988 No. 21 ([1988] ATS 21).
Note 2:
Section 11R gives this agreement the force of law.
Belgian agreement
means the Agreement between Australia and the Kingdom of Belgium for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, done at Canberra on 13 October 1977.
Note 1:
The text of this agreement is set out in Australian Treaty Series 1979 No. 21 ([1979] ATS 21).
Note 2:
Section 11C gives this agreement the force of law.
Belgian protocol (No. 1)
means the protocol, done at Canberra on 20 March 1984, amending the Belgian agreement.
Note:
The text of this protocol is set out in Australian Treaty Series 1986 No. 25 ([1986] ATS 25).
Belgian protocol (No. 2)
means the protocol, done at Paris on 24 June 2009, amending the Belgian agreement (as amended bythe Belgian protocol (No. 1)).
Note:
The text of this protocol is set out in Australian Treaty Series 2014 No. 37 ([2014] ATS 37).
History
Definition of "Belgian protocol (No. 2)" amended by No 40 of 2023, s 3 and Sch 1 item 4, by substituting the note, effective 29 June 2023. The note formerly read:
Note:
In 2011, the text of this protocol was accessible through the Australian Treaties Library on the AustLII website (www.austlii.edu.au).
British Virgin Islands agreement
means the Agreement between the Government of Australia and the Government of the British Virgin Islands for the allocation of taxing rights with respect to certain income of individuals, done at London on 27 October 2008.
Note:
The text of this agreement is set out in Australian Treaty Series 2010 No. 13 ([2010] ATS 13).
Canadian convention
means the Convention between Australia and Canada for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, done at Canberra on 21 May 1980.
Note 1:
The text of this convention is set out in Australian Treaty Series 1981 No. 14 ([1981] ATS 14).
Note 2:
Section 6A gives this convention the force of law.
Canadian protocol (No. 1)
means the protocol, done at Canberra on 23 January 2002, amending the Canadian convention.
Note:
The text of this protocol is set out in Australian Treaty Series 2002 No. 26 ([2002] ATS 26).
Chilean convention
means:
(a)
the Convention between Australia and the Republic of Chile for the avoidance of double taxation with respect to taxes on income and fringe benefits and the prevention of fiscal evasion; and
(b)
the protocol to that convention;
each done at Santiago on 10 March 2010.
Note:
The text of this convention and protocol is set out in Australian Treaty Series 2013 No. 7 ([2013] ATS 7).
History
Definition of "Chilean convention" amended by No 40 of 2023, s 3 and Sch 1 item 5, by inserting "and protocol" in the note, effective 29 June 2023.
Definition of "Chilean convention" amended by No 105 of 2014, s 3 and Sch 1 item 9, by substituting the note at the end, effective 24 September 2014. The note formerly read:
Note:
In 2011, the text of this convention and protocol was accessible through the Australian Treaties Library on the AustLII website (www.austlii.edu.au).
Definition of "Chilean convention" inserted by No 45 of 2011, s 3 and Sch 2 item 2, effective 27 June 2011.
Chinese agreement
means the Agreement between the Government of Australia and the Government of the People's Republic of China for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, done at Canberra on 17 November 1988.
Note:
The text of this agreement is set out in Australian Treaty Series 1990 No. 45 ([1990] ATS 45).
Chinese airline profits agreement
means the Agreement between the Government of Australia and the Government of the People's Republic of China for the avoidance of double taxation of income and revenues derived by air transport enterprises from international air transport, done at Beijing on 22 November 1985.
Note 1:
The text of this agreement is set out in Australian Treaty Series 1986 No. 31 ([1986] ATS 31).
Note 2:
Section 11Q gives this agreement the force of law.
Cook Islands agreement
means the Agreement between the Government of Australia and the Government of the Cook Islands on the allocation of taxing rights with respect to certain income of individuals and to establish a mutual agreement procedure in respect of transfer pricing adjustments, done at Rarotonga on 27 October 2009.
Note:
The text of this agreement is set out in Australian Treaty Series 2014 No. 13 ([2014] ATS 13).
History
Definition of "Cook Islands agreement" amended by No 40 of 2023, s 3 and Sch 1 item 6, by substituting the note, effective 29 June 2023. The note formerly read:
Note:
In 2011, the text of this agreement was accessible through the Australian Treaties Library on the AustLII website (www.austlii.edu.au).
Definition of "Cook Islands agreement" inserted by No 45 of 2011, s 3 and Sch 2 item 3, effective 27 June 2011.
Czech agreement
means the Agreement between Australia and the Czech Republic for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, done at Canberra on 28 March 1995.
Note:
The text of this agreement is set out in Australian Treaty Series 1995 No. 30 ([1995] ATS 30).
Danish agreement
means the Agreement between the Government of Australia and the Government of the Kingdom of Denmark for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, done at Canberra on 1 April 1981.
Note 1:
The text of this agreement is set out in Australian Treaty Series 1981 No. 26 ([1981] ATS 26).
Note 2:
Section 11H gives this agreement the force of law.
Fijian agreement
means the Agreement between Australia and Fiji for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, done at Canberra on 15 October 1990.
Note:
The text of this agreement is set out in Australian Treaty Series 1990 No. 44 ([1990] ATS 44).
Finnish agreement
means:
(a)
the Agreement between the Government of Australia and the Government of Finland for the avoidance of double taxation with respect to taxes on income and the prevention of fiscal evasion; and
(b)
the protocol to that agreement;
each done at Melbourne on 20 November 2006.
Note:
The text of this agreement and protocol is set out in Australian Treaty Series 2007 No. 36 ([2007] ATS 36).
French convention
means:
(a)
the Convention between the Government of Australia and the Government of the French Republic for the avoidance of double taxation with respect to taxes on income and the prevention of fiscal evasion; and
(b)
the protocol to that convention;
each done at Paris on 20 June 2006.
Note 1:
The text of this convention and protocol is set out in Australian Treaty Series 2009 No. 13 ([2009] ATS 13).
Note 2:
Subsection (2) applies to this convention and protocol.
German agreement
means:
(a)
the 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; and
(b)
the protocol to that agreement;
each done at Berlin on 12 November 2015.
Note:
The text of this agreement (including the protocol) is set out in Australian Treaty Series 2016 No. 23 ([2016] ATS 23).
History
Definition of "German agreement" amended by 83 of 2018, s 3 and Sch 1 item 3, by substituting the note, effective 24 August 2018. The note formerly read:
Note:
In 2016, the text of this agreement was accessible through the Australian Treaties Library on the AustLII website (www.austlii.edu.au).
Definition of "German agreement" substituted by No 64 of 2016, s 3 and Sch 1 item 1, effective 20 October 2016. The definition formerly read:
German agreement
means:
(a)
the Agreement between the Commonwealth of Australia and the Federal Republic of Germany for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital and to certain other taxes; and
(b)
the protocol to that agreement;
each done at Melbourne on 24 November 1972.
Note 1:
The text of this agreement and protocol is set out in Australian Treaty Series 1975 No. 8 ([1975] ATS 8).
Note 2:
Section 11 gives this agreement and protocol the force of law.
Greek airline profits agreement
means the Agreement between the Government of Australia and the Government of the Hellenic Republic for the avoidance of double taxation of income derived from international air transport, done at Canberra on 5 May 1977.
Note:
The text of this agreement is set out in Australian Treaty Series 1981 No. 10 ([1981] ATS 10).
Guernsey agreement
means the Agreement between the Government of Australia and the States of Guernsey for the allocation of taxing rights with respect to certain income of individuals and to establish a mutual agreement procedure in respect of transfer pricing adjustments, done at London on 7 October 2009.
Note:
The text of this agreement is set out in Australian Treaty Series 2011 No. 25 ([2011] ATS 25).
History
Definition of "Guernsey agreement" amended by No 14 of 2013, s 3 and Sch 1 item 7, by substituting the note at the end, effective 27 March 2013. The note formerly read:
Note:
In 2011, the text of this agreement was accessible through the Australian Treaties Library on the AustLII website (www.austlii.edu.au).
Definition of "Guernsey agreement" inserted by No 45 of 2011, s 3 and Sch 2 item 4, effective 27 June 2011.
Hungarian agreement
means the Agreement between Australia and the Republic of Hungary for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, done at Canberra on 29 November 1990.
Note:
The text of this agreement is set out in Australian Treaty Series 1992 No. 18 ([1992] ATS 18).
Icelandic convention
means:
(a)
the Convention between Australia and Iceland for the elimination of double taxation with respect to taxes on income and the prevention of tax evasion and avoidance; and
(b)
the protocol to that convention;
each done at Reykjavik on 12 October 2022.
Note:
The text of this convention and protocol could in 2023 be viewed on the Department's website (http://www.treasury.gov.au).
History
Definition of "Icelandic convention" inserted by No 40 of 2023, s 3 and Sch 1 item 1, effective 29 June 2023.
Indian agreement
means the Agreement between the Government of Australia and the Government of the Republic of India for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, done at Canberra on 25 July 1991.
Note:
The text of this agreement is set out in Australian Treaty Series 1991 No. 49 ([1991] ATS 49).
Indian protocol (No. 1)
means the protocol, done at New Delhi on 16 December 2011, amending the Indian agreement.
Note:
The text of this protocol is set out in Australian Treaty Series 2013 No. 22 ([2013] ATS 22).
History
Definition of "Indian protocol (No. 1)" amended by No 105 of 2014, s 3 and Sch 1 item 10, by substituting the note at the end, effective 24 September 2014. The note formerly read:
Note:
In 2013, the text of this protocol was accessible through the Australian Treaties Library on the AustLII website (www.austlii.edu.au).
Definition of "Indian protocol (No. 1)" inserted by No 14 of 2013, s 3 and Sch 1 item 1, effective 27 March 2013.
Indonesian agreement
means the Agreement between the Government of Australia and the Government of the Republic of Indonesia for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, done at Jakarta on 22 April 1992.
Note:
The text of this agreement is set out in Australian Treaty Series 1992 No. 40 ([1992] ATS 40).
Irish agreement
means the Agreement between the Government of Australia and the Government of Ireland for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital gains, done at Canberra on 31 May 1983.
Note 1:
The text of this agreement is set out in Australian Treaty Series 1983 No. 25 ([1983] ATS 25).
Note 2:
Section 11K gives this agreement the force of law.
Isle of Man agreement
means the Agreement between the Government of Australia and the Government of the Isle of Man for the allocation of taxing rights with respect to certain income of individuals and to establish a mutual agreement procedure in respect of transfer pricing adjustments, done at London on 29 January 2009.
Note:
The text of this agreement is set out in Australian Treaty Series 2010 No. 2 ([2010] ATS 2).
Israeli convention
means:
(a)
the Convention between the Government of Australia and the Government of the State of Israel for the elimination of double taxation with respect to taxes on income and the prevention of tax evasion and avoidance; and
(b)
the protocol to that convention;
each done at Canberra on 28 March 2019.
Note:
The text of this convention and protocol is set out in Australian Treaty Series 2019 No. 20 ([2019] ATS 20).
History
Definition of "Israeli convention" amended by No 40 of 2023, s 3 and Sch 1 item 7, by inserting the note, effective 29 June 2023.
Definition of "Israeli convention" inserted by No 107 of 2019, s 3 and Sch 1 item 1, effective 29 November 2019.
Italian airline profits agreement
means the Agreement between the Government of the Commonwealth of Australia and the Government of Italy for the avoidance of double taxation of income derived from international air transport, done at Canberra on 13 April 1972.
Note:
The text of this agreement is set out in Australian Treaty Series 1976 No. 7 ([1976] ATS 7).
Italian convention
means:
(a)
the Convention between Australia and the Republic of Italy for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income; and
(b)
the protocol to that convention;
each done at Canberra on 14 December 1982.
Note 1:
The text of this convention and protocol is set out in Australian Treaty Series 1985 No. 27 ([1985] ATS 27).
Note 2:
Section 10A gives this convention and protocol the force of law.
Japanese convention
means:
(a)
the Convention between Australia and Japan for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income; and
(b)
the protocol to that convention; and
(c)
the exchange of notes relating to that convention;
each done at Tokyo on 31 January 2008.
Note:
The text of this convention and protocol, and these notes, is set out in Australian Treaty Series 2008 No. 21 ([2008] ATS 21).
Jersey agreement
means the Agreement between the Government of Australia and the Government of Jersey for the allocation of taxing rights with respect to certain income of individuals and to establish a mutual agreement procedure in respect of transfer pricing adjustments, done at London on 10 June 2009.
Note:
The text of this agreement is set out in Australian Treaty Series 2012 No. 6 ([2012] ATS 6).
History
Definition of "Jersey agreement" amended by No 14 of 2013, s 3 and Sch 1 item 8, by substituting the note at the end, effective 27 March 2013. The note formerly read:
Note:
In 2011, the text of this agreement was accessible through the Australian Treaties Library on the AustLII website (www.austlii.edu.au).
Kiribati agreement
means the Agreement between Australia and the Republic of Kiribati for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, done at Canberra on 25 March 1991.
Note:
The text of this agreement is set out in Australian Treaty Series 1991 No. 34 ([1991] ATS 34).
Korean convention
means:
(a)
the Convention between the Government of Australia and the Government of the Republic of Korea for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income; and
(b)
the protocol to that convention;
each done at Canberra on 12 July 1982.
Note 1:
The text of this convention and protocol is set out in Australian Treaty Series 1984 No. 2 ([1984] ATS 2).
Note 2:
Section 11L gives this convention and protocol the force of law.
Malaysian agreement
means the Agreement between the Government of Australia and the Government of Malaysia for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, done at Canberra on 20 August 1980.
Note 1:
The text of this agreement is set out in Australian Treaty Series 1981 No. 15 ([1981] ATS 15).
Note 2:
Section 11F gives this agreement the force of law.
Note 3:
The text of letters exchanged about the tax sparing provision in Article 23 of this agreement is set out in Australian Treaty Series 1999 No. 24 ([1999] ATS 24).
Malaysian protocol (No. 1)
means the protocol, done at Sydney on 2 August 1999, amending the Malaysian agreement.
Note:
The text of this protocol is set out in Australian Treaty Series 2000 No. 25 ([2000] ATS 25).
Malaysian protocol (No. 2)
means:
(a)
the protocol amending the Malaysian agreement (as amended by the Malaysian protocol (No. 1)); and
(b)
the exchange of letters relating to that protocol;
each done at Genting Highlands on 28 July 2002.
Note:
The text of this protocol and these letters is set out in Australian Treaty Series 2004 No. 1 ([2004] ATS 1).
Malaysian protocol (No. 3)
means the protocol amending the Malaysian agreement (as amended by the Malaysian protocol (No. 1) and the Malaysian protocol (No. 2)), done at Canberra on 24 February 2010.
Note:
The text of this protocol is set out in Australian Treaty Series 2011 No. 27 ([2011] ATS 27).
History
Definition of "Malaysian protocol (No. 3)" amended by No 14 of 2013, s 3 and Sch 1 item 9, by substituting the note at the end, effective 27 March 2013. The note formerly read:
Note:
In 2011, the text of this protocol was accessible through the Australian Treaties Library on the AustLII website (www.austlii.edu.au).
Definition of "Malaysian protocol (No. 3)" inserted by No 45 of 2011, s 3 and Sch 2 item 5, effective 27 June 2011.
Maltese agreement
means the Agreement between Australia and Malta for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, done at Malta on 9 May 1984.
Note 1:
The text of this agreement is set out in Australian Treaty Series 1985 No. 15 ([1985] ATS 15).
Note 2:
Section 11N gives this agreement the force of law.
Marshall Islands agreement
means the Agreement between the Government of Australia and the Government of the Republic of the Marshall Islands for the allocation of taxing rights with respect to certain income of individuals and to establish a mutual agreement procedure in respect of transfer pricing adjustments, done at Majuro on 12 May 2010.
Note:
In 2023, the text of this agreement was accessible through the Australian Treaties Library on the AustLII website (www.austlii.edu.au).
History
Definition of "Marshall Islands agreement" amended by No 40 of 2023, s 3 and Sch 1 item 8, by substituting "2023" for "2013" in the note, effective 29 June 2023.
Definition of "Marshall Islands agreement" inserted by No 14 of 2013, s 3 and Sch 1 item 2, effective 27 March 2013.
Mauritius agreement
means the Agreement between the Government of Australia and the Government of the Republic of Mauritius for the allocation of taxing rights with respect to certain income of individuals and to establish a mutual agreement procedure in respect of transfer pricing adjustments, done at Port Louis on 8 December 2010.
Note:
The text of this agreement is set out in Australian Treaty Series 2013 No. 18 ([2013] ATS 18).
History
Definition of "Mauritius agreement" amended by No 105 of 2014, s 3 and Sch 1 item 11, by substituting the note at the end, effective 24 September 2014. The note formerly read:
Note:
In 2013, the text of this agreement was accessible through the Australian Treaties Library on the AustLII website (www.austlii.edu.au).
Definition of "Mauritius agreement" inserted by No 14 of 2013, s 3 and Sch 1 item 3, effective 27 March 2013.
Mexican agreement
means:
(a)
the Agreement between the Government of Australia and the Government of the United Mexican States for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income; and
(b)
the protocol to that agreement;
each done at Mexico City on 9 September 2002.
Note:
The text of this agreement and protocol is set out in Australian Treaty Series 2004 No. 4 ([2004] ATS 4).
Multilateral Convention
means the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting done at Paris on 7 June 2017.
Note:
The text of this convention is set out in Australian Treaty Series 2019 No. 1 ([2019] ATS 1).
History
Definition of "Multilateral Convention" amended by No 40 of 2023, s 3 and Sch 1 item 9, by substituting the note, effective 29 June 2023. The note formerly read:
Note:
In 2018, the text of this convention was accessible through the Australian Treaties Library on the AustLII website (www.austlii.edu.au).
Definition of "Multilateral Convention" inserted by No 83 of 2018, s 3 and Sch 1 item 1, effective 24 August 2018.
Netherlands agreement
means:
(a)
the Agreement between Australia and the Kingdom of the Netherlands for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income; and
(b)
the protocol to that agreement;
each done at Canberra on 17 March 1976.
Note:
The text of this agreement and protocol is set out in Australian Treaty Series 1976 No. 24 ([1976] ATS 24).
Netherlands protocol (No. 2)
means the protocol, done at Canberra on 30 June 1986, amending the Netherlands agreement.
Note:
The text of this protocol is set out in Australian Treaty Series 1987 No. 22 ([1987] ATS 22).
New Zealand convention
means the Convention between Australia and New Zealand for the avoidance of double taxation with respect to taxes on income and fringe benefits and the prevention of fiscal evasion, done at Paris on 26 June 2009.
Note:
The text of this convention is set out in Australian Treaty Series 2010 No. 10 ([2010] ATS 10).
Norwegian convention
means the Convention between Australia and the Kingdom of Norway for the avoidance of double taxation with respect to taxes on income and the prevention of fiscal evasion, done at Canberra on 8 August 2006.
Note:
The text of this convention is set out in Australian Treaty Series 2007 No. 32 ([2007] ATS 32).
Papua New Guinea agreement
means the Agreement between Australia and the Independent State of Papua New Guinea for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, done at Canberra on 24 May 1989.
Note:
The text of this agreement is set out in Australian Treaty Series 1989 No. 37 ([1989] ATS 37).
Philippine agreement
means the Agreement between the Government of Australia and the Government of the Republic of the Philippines for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, done at Manila on 11 May 1979.
Note 1:
The text of this agreement is set out in Australian Treaty Series 1980 No. 16 ([1980] ATS 16).
Note 2:
Section 11D gives this agreement the force of law.
Polish agreement
means the Agreement between Australia and the Republic of Poland for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, done at Canberra on 7 May 1991.
Note:
The text of this agreement is set out in Australian Treaty Series 1992 No. 14 ([1992] ATS 14).
Romanian agreement
means:
(a)
the Agreement between Australia and Romania for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income; and
(b)
the protocol to that agreement;
each done at Canberra on 2 February 2000.
Note:
The text of this agreement and protocol is set out in Australian Treaty Series 2001 No. 4 ([2001] ATS 4).
Russian agreement
means:
(a)
the Agreement between the Government of Australia and the Government of the Russian Federation for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income; and
(b)
the protocol to that agreement;
each done at Canberra on 7 September 2000.
Note:
The text of this agreement and protocol is set out in Australian Treaty Series 2003 No. 23 ([2003] ATS 23).
Samoan agreement
means the Agreement between the Government of Australia and the Government of Samoa for the allocation of taxing rights with respect to certain income of individuals and to establish a mutual agreement procedure in respect of transfer pricing adjustments, done at Canberra on 16 December 2009.
Note:
In 2023, the text of this agreement was accessible through the Australian Treaties Library on the AustLII website (www.austlii.edu.au).
History
Definition of "Samoan agreement" amended by No 40 of 2023, s 3 and Sch 1 item 10, by substituting "2023" for "2011" in the note, effective 29 June 2023.
Definition of "Samoan agreement" inserted by No 45 of 2011, s 3 and Sch 2 item 6, effective 27 June 2011.
Singaporean agreement
means the Agreement between the Government of the Commonwealth of Australia and the Government of the Republic of Singapore for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, done at Canberra on 11 February 1969.
Note 1:
The text of this agreement is set out in Australian Treaty Series 1969 No. 14 ([1969] ATS 14).
Note 2:
Section 7 gives this agreement the force of law.
Note 3:
The text of notes exchanged about the tax sparing provisions in Article 18 of this agreement is set out in the Australian Treaty Series at [1975] ATS 18, [1981] ATS 31 and [1989] ATS 26.
Singaporean protocol (No. 1)
means the protocol, done at Canberra on 16 October 1989, amending the Singaporean agreement.
Note:
The text of this protocol is set out in AustralianTreaty Series 1990 No. 3 ([1990] ATS 3).
Singaporean protocol (No. 2)
means the protocol, done at Canberra on 8 September 2009, amending the Singaporean agreement (as amended by the Singaporean protocol (No. 1)).
Note:
The text of this protocol is set out in Australian Treaty Series 2010 No. 26 ([2010] ATS 26).
Slovak agreement
means the Agreement between Australia and the Slovak Republic for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, done at Canberra on 24 August 1999.
Note:
The text of this agreement is set out in Australian Treaty Series 1999 No. 35 ([1999] ATS 35).
South African agreement
means:
(a)
the Agreement between the Government of Australia and the Government of the Republic of South Africa for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income; and
(b)
the protocol to that agreement;
each done at Canberra on 1 July 1999.
Note:
The text of this agreement and protocol is set out in Australian Treaty Series 1999 No. 34 ([1999] ATS 34).
South African protocol (No. 2)
means the protocol, done at Pretoria on 31 March 2008, amending the South African agreement.
Note:
The text of this protocol is set out in Australian Treaty Series 2008 No. 18 ([2008] ATS 18).
Spanish agreement
means:
(a)
the Agreement between Australia and the Kingdom of Spain for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income; and
(b)
the protocol to that agreement;
each done at Canberra on 24 March 1992.
Note:
The text of this agreement and protocol is set out in Australian Treaty Series 1992 No. 41 ([1992] ATS 41).
Sri Lankan agreement
means the Agreement between Australia and the Democratic Socialist Republic of Sri Lanka for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, done at Canberra on 18 December 1989.
Note:
The text of this agreement is set out in Australian Treaty Series 1991 No. 42 ([1991] ATS 42).
Swedish agreement
means the Agreement between the Government of Australia and the Government of Sweden for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, done at Canberra on 14 January 1981.
Note 1:
The text of this agreement is set out in Australian Treaty Series 1981 No. 18 ([1981] ATS 18).
Note 2:
Section 11G gives this agreement the force of law.
Swiss agreement
(Repealed by No 105 of 2014)
History
Definition of "Swiss agreement" repealed by No 105 of 2014, s 3 and Sch 1 item 1, effective 24 September 2014. The definition formerly read:
Swiss agreement
means:
(a)
the Agreement between Australia and Switzerland for the avoidance of double taxation with respect to taxes on income; and
(b)
the protocol to that agreement;
each done at Canberra on 28 February 1980.
Note 1:
The text of this agreement and protocol is set out in Australian Treaty Series 1981 No. 5 ([1981] ATS 5).
Note 2:
Section 11E gives this agreement and protocol the force of law.
Swiss convention
means:
(a)
the Convention between Australia and the Swiss Confederation for the Avoidance of Double Taxation with respect to Taxes on Income; and
(b)
the protocol to that convention;
each done at Sydney on 30 July 2013.
Note:
The text of this convention and protocol is set out in Australian Treaty Series 2014 No. 33 ([2014] ATS 33).
History
Definition of "Swiss convention" amended by No 64 of 2016, s 3 and Sch 1 item 7, by substituting the note, effective 20 October 2016. The note formerly read:
Note:
In 2013, the text of this convention and protocol was accessible through the Australian Treaties Library on the AustLII website (www.austlii.edu.au).
Definition of "Swiss convention" inserted by No 105 of 2014, s 3 and Sch 1 item 2, effective 24 September 2014.
Taipei agreement
means:
(a)
the Agreement between the Australian Commerce and Industry Office and the Taipei Economic and Cultural Office concerning the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income; and
(b)
the annex to that agreement;
each done at Canberra on 29 May 1996. A copy of this agreement and annex is set out in Schedule 1.
Thai agreement
means the Agreement between Australia and the Kingdom of Thailand for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, done at Canberra on 31 August 1989.
Note:
The text of this agreement is set out in Australian Treaty Series 1989 No. 36 ([1989] ATS 36).
Turkish convention
means:
(a)
the Convention between the Government of Australia and the Government of the Republic of Turkey for the avoidance of double taxation with respect to taxes on income and the prevention of fiscal evasion; and
(b)
the protocol to that convention;
each done at Ankara on 28 April 2010.
Note:
The text of this convention and protocol is set out in Australian Treaty Series 2013 No. 19 ([2013] ATS 19).
History
Definition of "Turkish convention" amended by No 40 of 2023, s 3 and Sch 1 item 11, by inserting "and protocol" in the note, effective 29 June 2023.
Definition of "Turkish convention" amended by No 105 of 2014, s 3 and Sch 1 item 12, by substituting the note at the end, effective 24 September 2014. The note formerly read:
Note:
In 2011, the text of this convention and protocol was accessible through the Australian Treaties Library on the AustLII website (www.austlii.edu.au).
Definition of "Turkish convention" inserted by No 45 of 2011, s 3 and Sch 2 item 7, effective 27 June 2011.
United Kingdom convention
means:
(a)
the Convention between the Government of Australia and the Government of the United Kingdom of Great Britain and Northern Ireland for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital gains; and
(b)
the exchange of notes relating to that convention;
each done at Canberra on 21 August 2003.
Note:
The text of this convention and notes is set out in Australian Treaty Series 2003 No. 22 ([2003] ATS 22).
United States convention
means the Convention between the Government of Australia and the Government of the United States of America for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, done at Sydney on 6 August 1982.
Note:
The text of this convention is set out in Australian Treaty Series 1983 No. 16 ([1983] ATS 16).
United States protocol (No. 1)
means the protocol, done at Canberra on 27 September 2001, amending the United States convention.
Note:
The text of this protocol is set out in Australian Treaty Series 2003 No. 14 ([2003] ATS 14).
Vietnamese agreement
means the Agreement between the Government of Australia and the Government of the Socialist Republic of Vietnam for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, done at Hanoi on 13 April 1992.
Note 1:
The text of this agreement is set out in Australian Treaty Series 1992 No. 44 ([1992] ATS 44).
Note 2:
The text of letters exchanged about the tax sparing provision in Article 23 of this agreement is set out in Australian Treaty Series 2003 No. 9 ([2003] ATS 9).
Vietnamese notes (No. 1)
means the exchange of notes, done at Canberra on 22 November 1996, amending the Vietnamese agreement.
Note:
The text of these notes is set out in Australian Treaty Series 1997 No. 20 ([1997] ATS 20).
3AAA(2)
For the purposes of this Act, when construing the English language text of the French convention:
(a)
words in the singular include the plural; and
(b)
words in the plural include the singular;
unless the contrary intention appears.
History
S 3AAA inserted by No 45 of 2011, s 3 and Sch 1 item 5, effective 27 June 2011. For transitional provisions see note under s 3(1).
SECTION 3AAB
DEFINITIONS - AGREEMENTS FOR EARLIER PERIODS
3AAB(1)
In this Act:
Canadian 1957 agreement
means the Agreement between the Government of the Commonwealth of Australia and the Government of Canada for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, done at Mont Tremblant on 1 October 1957.
Note:
The text of this agreement is set out in Australian Treaty Series 1958 No. 12 ([1958] ATS 12).
Finnish 1984 agreement
means:
(a)
the Agreement between Australia and Finland for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income; and
(b)
the protocol to that agreement;
each done at Canberra on 12 September 1984.
Note:
The text of this agreement and protocol is set out in Australian Treaty Series 1986 No. 6 ([1986] ATS 6).
Finnish 1997 protocol
means the protocol, done at Canberra on 5 November 1997, amending the Finnish 1984 agreement.
Note:
The text of this protocol is set out in Australian Treaty Series 2000 No. 24 ([2000] ATS 24).
French 1969 airline profits agreement
means the Agreement between the Government of the Commonwealth of Australia and the Government of the French Republic for the avoidance of double taxation of income derived from international air transport, done at Canberra on 27 March 1969.
Note:
The text of this agreement is set out in Australian Treaty Series 1970 No. 13 ([1970] ATS 13).
French 1976 agreement
means the Agreement between the Government of Australia and the Government of the French Republic for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, done at Canberra on 13 April 1976.
Note 1:
The text of this agreement is set out in Australian Treaty Series 1977 No. 21 ([1977] ATS 21).
Note 2:
Subsection (2) applies to this agreement.
French 1989 protocol
means the protocol, done at Paris on 19 June 1989, amending the French 1976 agreement.
Note:
The text of this protocol is set out in Australian Treaty Series 1990 No. 26 ([1990] ATS 26).
German 1972 agreement
means:
(a)
the Agreement between the Commonwealth of Australia and the Federal Republic of Germany for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital and to certain other taxes; and
(b)
the protocol to that agreement;
each done at Melbourne on 24 November 1972.
Note 1:
The text of this agreement and protocol is set out in Australian Treaty Series 1975 No. 8 ([1975] ATS 8).
Note 2:
Section 11 continues to give this agreement and protocol the force of law in respect of certain income.
History
Definition of "German 1972 agreement" inserted by No 64 of 2016, s 3 and Sch 1 item 2, effective 20 October 2016.
Japanese 1969 agreement
means:
(a)
the Agreement between the Commonwealth of Australia and Japan for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income; and
(b)
the protocol to that agreement;
each done at Canberra on 20 March 1969.
Note 1:
The text of this agreement and protocol is set out in Australian Treaty Series 1970 No. 9 ([1970] ATS 9).
Note 2:
Subsections (2) and (3) apply to this agreement and protocol.
New Zealand 1960 agreement
means the Agreement between the Government of the Commonwealth of Australia and the Government of New Zealand for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, done at Canberra on 12 May 1960.
Note:
The text of this agreement is set out in Australian Treaty Series 1960 No. 6 ([1960] ATS 6).
New Zealand 1972 agreement
means the Agreement between the Government of the Commonwealth of Australia and the Government of New Zealand for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, done at Melbourne on 8 November 1972.
Note:
The text of this agreement is set out in Australian Treaty Series 1973 No. 11 ([1973] ATS 11).
New Zealand 1995 agreement
means the Agreement between the Government of Australia and the Government of New Zealand for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, done at Melbourne on 27 January 1995.
Note:
The text of this agreement is set out in Australian Treaty Series 1997 No. 23 ([1997] ATS 23).
New Zealand 2005 protocol
means the protocol, done at Melbourne on 15 November 2005, amending the New Zealand 1995 agreement.
Note:
The text of this protocol is set out in Australian Treaty Series 2007 No. 5 ([2007] ATS 5).
Norwegian 1982 convention
means:
(a)
the Convention between Australia and the Kingdom of Norway for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital; and
(b)
the protocol to that convention;
each done at Canberra on 6 May 1982.
Note:
The text of this convention and protocol is set out in Australian Treaty Series 1983 No. 19 ([1983] ATS 19).
Swiss 1980 agreement
means:
(a)
the Agreement between Australia and Switzerland for the avoidance of double taxation with respect to taxes on income; and
(b)
the protocol to that agreement;
each done at Canberra on 28 February 1980.
Note 1:
The text of this agreement and protocol is set out in Australian Treaty Series 1981 No. 5 ([1981] ATS 5).
Note 2:
Section 11E continues to give this agreement and protocol the force of law in respect of certain income.
History
Definition of "Swiss 1980 agreement" amended by No 64 of 2016, s 3 and Sch 1 item 8, by omitting "or fringe benefits" after "certain income" in note 2, effective 20 October 2016.
Definition of "Swiss 1980 agreement" inserted by No 105 of 2014, s 3 and Sch 1 item 3, effective 24 September 2014.
United Kingdom 1946 agreement
means the Agreement between the Government of Australia and the Government of the United Kingdom for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, done at London on 29 October 1946.
Note:
The text of this agreement is set out in Australian Treaty Series 1947 No. 18 ([1947] ATS 18).
United Kingdom 1967 agreement
means the Agreement between the Government of the Commonwealth of Australia and the Government of the United Kingdom of Great Britain and Northern Ireland for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital gains, done at Canberra on 7 December 1967.
Note:
The text of this agreement is set out in Australian Treaty Series 1968 No. 9 ([1968] ATS 9).
United Kingdom 1980 protocol
means the protocol, done at Canberra on 29 January 1980, amending the United Kingdom 1967 agreement.
Note:
The text of this protocol is set out in Australian Treaty Series 1980 No. 22 ([1980] ATS 22).
United States 1953 convention
means the Convention between the Government of the Commonwealth of Australia and the Government of the United States of America for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, done at Washington on 14 May 1953.
Note:
The text of this convention is set out in Australian Treaty Series 1953 No. 4 ([1953] ATS 4).
3AAB(2)
For the purposes of this Act, when construing the English language texts of the French 1976 agreement and the Japanese 1969 agreement:
(a)
words in the singular include the plural; and
(b)
words in the plural include the singular;
unless the contrary intention appears.
3AAB(3)
For the purposes of this Act, a reference in the Japanese 1969 agreement to an area adjacent to Australia as specified in the Second Schedule to the
Petroleum (Submerged Lands) Act 1967-1968 includes a reference to an area adjacent to Australia as specified in Schedule 1 to the
Offshore Petroleum and Greenhouse Gas Storage Act 2006.
History
S 3AAB inserted by No 45 of 2011, s 3 and Sch 1 item 5, effective 27 June 2011. For transitional provisions see note under s 3(1).
SECTION 3AA
SOURCE OF INCOME FROM FUNDS MANAGEMENT ACTIVITIES
3AA(1)
This section applies to a beneficiary of a widely held unit trust if:
(a)
the beneficiary is a resident of a country (other than Australia) for the purposes of an agreement that is given the force of law under this Act; and
(b)
the beneficiary is presently entitled, either:
(i)
directly; or
(ii)
indirectly through fixed entitlements in one or more interposed trust estates (whether widely held unit trusts or not);
to a share of the income of the widely held unit trust derived from the carrying on by the trustee in Australia of funds management activities through a permanent establishment in Australia (the
funds management income
).
3AA(2)
In working out for the purposes of the Assessment Act whether the funds management income of the beneficiary is attributable to sources in Australia, these provisions (the
source of income provisions
) do not apply:
(a)
Article
21 of the United Kingdom convention;
(b)
a corresponding provision of another agreement;
(c)
subsections
11(2),
11S(2) and
11ZF(2) of this Act, and any provision of this Act of similar effect enacted after the commencement of this section;
(d)
section
764-5 of the
Income Tax Assessment Act 1997.
History
S 3AA(2) amended by No 107 of 2019, s 3 and Sch 2 items 3 and 4, by substituting "11(2)" for "11(3)" in para (c) and inserting para (d), effective 1 January 2020.
S 3AA(2) amended by No 45 of 2011, s 3 and Sch 1 item 6, by omitting "2003" before "United Kingdom" in para (a), effective 27 June 2011. For transitional provisions see note under s 3(1).
3AA(3)
However, the source of income provisions do apply to the extent to which the income derived from the carrying on by the trustee of funds management activities is adjusted under:
(a)
Article
7(2) or
9(1) of the United Kingdom convention; or
(b)a corresponding provision of another agreement.
History
S 3AA(3) amended by No 45 of 2011, s 3 and Sch 1 item 6, by omitting "2003" before "United Kingdom" in para (a), effective 27 June 2011. For transitional provisions see note under s 3(1).
3AA(4)
In this section:
closely held
has the meaning given by section 272-105 in Schedule 2F to the Income Tax Assessment Act 1936.
funds management activities
means activities carried on by:
(a)
a managed investment scheme (as defined by section 9 of the
Corporations Act 2001) that is a widely held unit trust; or
(b)
a managed investment scheme (as so defined) that is a unit trust that is closely held by one or more of these:
(i)
a managed investment scheme (as so defined) that is a widely held unit trust;
(ii)
a complying superannuation entity;
(iii)
a life insurance company.
permanent establishment
, in relation to an agreement, has the same meaning as in the agreement.
widely held unit trust
has the meaning given by section 272-105 in Schedule 2F to the Income Tax Assessment Act 1936.
History
S 3AA inserted by No 21 of 2005.
SECTION 3A
ALIENATION OF REAL PROPERTY THROUGH INTERPOSED ENTITIES
3A(1)
[Application]
This section applies if:
(a)
an agreement makes provision in relation to income, profits or gains from the alienation or disposition of shares or comparable interests in companies, or of interests in other entities, whose assets consist wholly or principally of real property (within the meaning of the agreement) or other interests in relation to land; and
(b)
this Act gave that provision the force of law before 27 April 1998.
3A(2)
[Scope]
For the purposes of this Act, that provision is taken to extend to the alienation or disposition of shares or any other interests in companies, and in any other entities, the value of whose assets is wholly or principally attributable, whether directly, or indirectly through one or more interposed companies or other entities, to such real property or interests.
3A(3)
[Real property etc to be in Australia]
However, subsection (2) applies only if the real property or land concerned is situated in Australia (within the meaning of the relevant agreement).
3A(4)
[Future amendments]
If, after the commencement of this section, this Act is amended so as to give the force of law to an amendment or substitution of a provision mentioned in subsection (1), this section ceases to apply to that provision from the time that the amendment of the Act takes effect.
3A(5)
[Definitions]
In this section:
entity
has the same meaning as in the Income Tax Assessment Act 1997, but does not include an individual in his or her personal capacity.
History
S 3A inserted by No 114 of 2000.
SECTION 4
INCORPORATION OF ASSESSMENT ACT
4(1)
Subject to subsection (2), the Assessment Act is incorporated and shall be read as one with this Act.
Note:
An effect of this provision is that people who acquire information under this Act are subject to the confidentiality obligations and exceptions in Division 355 in Schedule 1 to the Taxation Administration Act 1953.
History
S 4(1) amended by No 145 of 2010, s 3 and Sch 2 item 56, by inserting the note at the end, effective 17 December 2010.
4(2)
The provisions of this Act have effect notwithstanding anything inconsistent with those provisions contained in the Assessment Act (other than the provisions covered by subsection
(3)) or in an Act imposing Australian tax.
History
S 4(2) amended by No 8 of 2022, s 3 and Sch 5 item 5, by substituting "the provisions covered by subsection (3)". for "Part IVA of the Income Tax Assessment Act 1936", effective 1 July 2022.
S 4(2) amended by No 45 of 2011, s 3 and Sch 1 item 7, by substituting "the Income Tax Assessment Act 1936" for "that Act", effective 27 June 2011. For transitional provisions see note under s 3(1).
S 4(2) amended by No 143 of 2007, s 3 and Sch 1 item 208, by omitting "section 160AO or" before "Part IV of that Act", applicable in relation to income years, statutory accounting periods and notional accounting periods starting on or after the first 1 July that occurs after 24 September 2007.
S 4(2) amended by No 110 of 1981.
4(3)
This subsection covers the following provisions:
(a)
Part
IVA of the
Income Tax Assessment Act 1936;
(b)
Subdivision
195-C (Corporate collective investment vehicles) of the
Income Tax Assessment Act 1997.
History
S 4(3) inserted by No 8 of 2022, s 3 and Sch 5 item 6, effective 1 July 2022.
SECTION 4AA
INCORPORATION OF FRINGE BENEFITS TAX ASSESSMENT ACT
4AA(1)
Subject to subsection (2), the
Fringe Benefits Tax Assessment Act 1986 is incorporated and is to be read as one with this Act.
4AA(2)
The provisions of this Act have effect in spite of anything inconsistent with those provisions contained in the
Fringe Benefits Tax Assessment Act 1986 (other than section
67 of that Act).
History
S 4AA inserted by No 22 of 1995.
SECTION 4A
TREASURER TO NOTIFY ENTRY INTO FORCE OF AGREEMENTS, EXCHANGES OF LETTERS UNDER AGREEMENTS ETC.
4A(1)
This section applies to the following events:
(a)
the entry into force of an agreement;
(b)
the giving of notice of termination of an agreement;
(c)
the exchange of letters under a provision of an agreement;
(d)
the exchange of instruments of ratification under an agreement;
(e)
the confirmation of receipt of a notice under a provision of an agreement;
(f)
the occurrence of any similar thing.
4A(2)
As soon as practicable after any such event occurs, the Treasurer must, by notifiable instrument, publish particulars of the event.
History
S 4A(2) amended by No 64 of 2020, s3 and Sch 3 item 254, by substituting "must, by notifiable instrument, publish particulars of the event" for "must cause to be published in the Gazette a notice setting out particulars of the event", effective 1 October 2020. No 64 of 2020, s 3 and Sch 3 item 325 contains the following transitional provision:
325 Transitional - general provision to preserve existing instruments
(1)
Subitem (2) applies to an instrument (however described) made under, or for the purposes of, a provision amended by an item of this Part if:
(a)
the instrument was in force immediately before the commencement of this Part; and
(b)
the provision, as amended, provides for the same instrument, or a similar instrument, to be made as a notifiable instrument or a legislative instrument; and
(c)
item 326 does not apply to the instrument.
(2)
The instrument continues in force (and may be dealt with) as if it had been made under, or for the purposes of, the provision as amended.
History
S 4A inserted by No 165 of 1989.
SECTION 5
CURRENT AGREEMENTS HAVE THE FORCE OF LAW
5(1)
Subject to this Act, on and after the date of entry into force of a provision of an agreement mentioned below, the provision has the force of law according to its tenor.
Note 1:
The table also lists some provisions of this Act that relate to the agreement.
Note 2:
Some current agreements are given the force of law by other provisions of this Act.
|
Current agreements
|
|
Agreement
|
Related provisions
|
| Argentine agreement |
section 11ZI |
| Aruban agreement |
nil |
| Belgian protocol (No. 1) |
section 11C |
| Belgian protocol (No. 2) |
section 11C |
| British Virgin Islands agreement |
nil |
| Canadian protocol (No. 1) |
section 6A |
| Chilean convention |
nil |
| Chinese agreement |
section 11S |
| Cook Islands agreement |
nil |
| Czech agreement |
nil |
| Fijian agreement |
nil |
| Finnish agreement |
nil |
| French convention |
nil |
| German agreement |
nil |
| Greek airline profits agreement |
nil |
| Guernsey agreement |
nil |
| Hungarian agreement | nil |
| Icelandic convention |
nil |
| Indian agreement |
section 11J |
| Indian protocol (No. 1) |
section 11J |
| Indonesian agreement |
nil |
| Isle of Man agreement |
nil |
| Israeli convention |
nil |
| Italian airline profits agreement |
nil |
| Japanese convention |
nil |
| Jersey agreement |
nil |
| Kiribati agreement |
nil |
| Malaysian protocol (No. 1) |
sections 11F and 11FA |
| Malaysian protocol (No. 2) |
sections 11F and 11FB |
| Malaysian protocol (No. 3) |
section 11F |
| Marshall Islands agreement |
nil |
| Mauritius agreement |
nil |
| Mexican agreement |
nil |
| Multilateral Convention |
nil |
| Netherlands agreement |
section 11A |
| Netherlands protocol (No. 2) |
section 11A |
| New Zealand convention |
section 6B |
| Norwegian convention |
nil |
| Papua New Guinea agreement |
nil |
| Polish agreement |
section 11ZA |
| Romanian agreement |
nil |
| Russian agreement |
nil |
| Samoan agreement |
nil |
| Singaporean protocol (No. 1) |
section 7 |
| Singaporean protocol (No. 2) |
section 7 |
| Slovak agreement |
nil |
| South African agreement |
nil |
| South African protocol (No. 2) |
nil |
| Spanish agreement |
nil |
| Sri Lankan agreement |
nil |
| Swiss convention |
nil |
| Taipei agreement |
section 11ZF |
| Thai agreement |
nil |
| Turkish convention |
nil |
| United Kingdom convention |
nil |
| United States convention |
sections 6 and 20 |
| United States protocol (No. 1) |
sections 6 and 20 |
| Vietnamese agreement |
nil |
| Vietnamese notes (No. 1) |
section 11ZCA |
History
S 5(1) table amended by No 40 of 2023, s 3 and Sch 1 item 2, by inserting table item pertaining to the Icelandic convention, effective 29 June 2023.
S 5(1) table amended by No 60 of 2022, s 3 and Sch 1 items 1 and 2, by substituting "section 11J" for "nil" in table item pertaining with the Indian agreement and table item pertaining with the Indian protocol (No. 1), applicable in relation to assessments for years of income starting on or after 29 December 2022.
S 5(1) table amended by No 72 of 2021, s 3 and Sch 5 item 1, by substituting table item pertaining to the New Zealand convention, effective 1 July 2021.
S 5(1) table amended by No 107 of 2019, s 3 and Sch 1 item 2, by inserting table item pertaining to the Israeli convention, effective 29 November 2019.
S 5(1) table amended by 83 of 2018, s 3 and Sch 1 item 2, by inserting table item pertaining to the Multilateral Convention, effective 24 August 2018.
S 5(1) table amended by No 64 of 2016, s 3 and Sch 1 item 3, by inserting table item pertaining to the German agreement, effective 20 October 2016.
S 5(1) table amended by No 105 of 2014, s 3 and Sch 1 item 4, by inserting table item pertaining to the Swiss convention, effective 24 September 2014.
S 5(1) table amended by No 14 of 2013, s 3 and Sch 1 items 4-5, by inserting table items pertaining to the Indian protocol (No. 1), Marshall Islands agreement, and Mauritius agreement, effective 27 March 2013.
S 5(1) table amended by No 45 of 2011, s 3 and Sch 2 items 8 to 14, by inserting table items pertaining to the Aruban agreement, Chilean convention, Cook Islands agreement, Guernsey agreement, Malaysian protocol (No. 3), Samoan agreement and Turkish convention, effective 27 June 2011.
5(2)
Subsection
(1) does not apply to Article 23 of the United States convention (as amended by the United States protocol (No. 1)).
5(3)
The operation of a provision of an agreement provided for by subsection
(1) is subject to anything inconsistent with the provision contained in a law of the Commonwealth, or of a State or Territory, that imposes a tax other than Australian tax, unless expressly provided otherwise in that law.
History
S 5(3) inserted by No 18 of 2024, s 3 and Sch 1 item 1, effective 8 April 2024 and applicable in relation to: (a) taxes (other than Australian tax) payable on or after 1 January 2018; and (b) taxes (other than Australian tax) payable in relation to tax periods (however described) that end on or after 1 January 2018.
History
S 5 substituted by No 45 of 2011, s 3 and Sch 1 item 8, effective 27 June 2011. For transitional provisions see note under s 3(1). S 5 formerly read:
SECTION 5 THE 2003 UNITED KINGDOM CONVENTION
5
Subject to this Act, on and after the date of entry into force of the 2003 United Kingdom convention, the provisions of the convention, so far as those provisions affect Australian tax, have the force of law according to their tenor.
S 5 substituted by No 123 of 2003. For transitional provisions see note under s 3(1).
SECTION 5A
5A
EARLIER AGREEMENTS CONTINUE TO HAVE THE FORCE OF LAW
The provisions of each of the agreements mentioned below, so far as those provisions affect Australian tax, continue to have the force of law for tax in respect of income or fringe benefits in relation to which the agreement remains effective.
Note:
Some earlier agreements continue to have the force of law by other provisions of this Act.
|
Agreement
|
| Canadian 1957 agreement |
| Finnish 1984 agreement |
| Finnish 1997 protocol |
| French 1969 airline profits agreement |
| French 1976 agreement |
| French 1989 protocol |
| Japanese 1969 agreement |
| New Zealand 1960 agreement |
| New Zealand 1972 agreement |
| New Zealand 1995 agreement |
| New Zealand 2005 protocol |
| Norwegian 1982 convention |
| United Kingdom 1946 agreement |
| United Kingdom 1967 agreement |
| United Kingdom 1980 protocol |
| United States 1953 convention |
History
S 5A amended by No 105 of 2014, s 3 and Sch 1 item 5, by inserting the note, effective 24 September 2014.
S 5A substituted by No 45 of 2011, s 3 and Sch 1 item 8, effective 27 June 2011. For transitional provisions see note under s 3(1). S 5A formerly read:
SECTION 5A PREVIOUS UNITED KINGDOM AGREEMENTS ETC.
5A
The provisions of:
(a)
the 1946 United Kingdom agreement; and
(b)
the 1967 United Kingdom agreement; and
(c)
the 1967 United Kingdom agreement as amended by the 1980 Protocol to the 1967 United Kingdom agreement;
so far as those provisions affect Australian tax, continue to have the force of law for tax in respect of income in relation to which the agreements remain effective.
Note 1:
Paragraph 3 of Article 29 of the 2003 United Kingdom convention preserves the operation of Article 16 of the 1967 United Kingdom agreement (which exempts from tax the income of visiting professors and teachers). This applies to individuals who are entitled to the exemption at the time when the 2003 United Kingdom convention enters into force. The exemption is preserved until the individual concerned would have ceased to be entitled to it under the 1967 United Kingdom agreement.
Note 2:
Article 16 of the 1967 United Kingdom agreement is affected by Article I of the 1980 Protocol to the 1967 United Kingdom agreement.
S 5A substituted by No 123 of 2003 and inserted by No 23 of 1980.
SECTION 6
6
CONVENTION WITH UNITED STATES OF AMERICA
The United States convention (as amended by the United States protocol (No. 1)) does not subject to Australian tax any interest paid by a resident of Australia to a resident of the United States of America that, apart from that convention, would not be subject to Australian tax.
History
S 6 amended by No 45 of 2011, s 3 and Sch 1 items 9 to 11, by repealing s 6(1) and (3), omitting "(4)" and substituting "United States convention (as amended by the United States protocol (No. 1)) does not subject" for "provisions of the convention with the United States of America do not have the effect of subjecting" in s 6(4), effective 27 June 2011. For transitional provisions see note under s 3(1). S 6 formerly read:
SECTION 6 CONVENTION WITH UNITED STATES OF AMERICA
6(1)
Subject to this Act, on and after the date of entry into force of the United States convention, the provisions of Articles 1 to 22 (inclusive) and Articles 24 to 29 (inclusive) of the convention, so far as those provisions affect Australian tax, have the force of law in relation to tax in respect of:
(a)
income, being dividends, interest or royalties to which Article 10, 11 or 12, as the case may be, of the convention applies, derived on or after the first day of the second month following the month in which the convention enters into force, and in relation to which the convention remains effective; and
(b)
income to which paragraph (a) does not apply, being income of a year of income commencing on or after the first day of the second month following the month in which the convention enters into force, and in relation to which the convention remains effective.
6(2)
(Omitted by No 165 of 1989)
6(3)
The provisions of the previous United States convention, so far as those provisions affect Australian tax, continue to have the force of law in relation to tax in respect of income in relation to which the convention remains effective.
6(4)
The provisions of the convention with the United States of America do not have the effect of subjecting to Australian tax any interest paid by a resident of Australia to a resident of the United States of America that, apart from that convention, would not be subject to Australian tax.
History
S 6(4) inserted by No 129 of 2002.
S 6 substituted by No 57 of 1983 and amended by No 216 of 1973.
6AA
(Repealed) SECTION 6AA PROTOCOL WITH THE UNITED STATES OF AMERICA
(Repealed by No 45 of 2011)
History
S 6AA repealed by No 45 of 2011, s 3 and Sch 1 item 12, effective 27 June 2011. For transitional provisions see note under s 3(1). S 6AA formerly read:
SECTION 6AA PROTOCOL WITH THE UNITED STATES OF AMERICA
6AA
Subject to this Act, on and after the date of entry into force of the United States protocol, the provisions of the protocol, so far as those provisions affect Australian tax, have the force of law according to their tenor.
S 6AA inserted by No 59 of 2002.
SECTION 6A
6A
CONVENTION WITH CANADA
Subject to this Act, on and after the date of entry into force of the Canadian convention, the provisions of the convention, so far as those provisions affect Australian tax, have, and shall be deemed to have had, the force of law:
(a)
in relation to withholding tax - in respect of dividends or interest derived on or after 1 July 1975 and in relation to which the convention remains effective; and
(b)
in relation to tax other than withholding tax - in respect of income of any year of income commencing on or after 1 July 1975 and in relation to which the convention remains effective.
History
S 6A amended by No 45 of 2011, s 3 and Sch 1 items 13 and 14, by omitting "(1)" from s 6A(1) and repealing s 6A(3), effective 27 June 2011. For transitional provisions see note under s 3(1). S 6A formerly read:
SECTION 6A CONVENTION WITH CANADA
6A(1)
Subject to this Act, on and after the date of entry into force of the Canadian convention, the provisions of the convention, so far as those provisions affect Australian tax, have, and shall be deemed to have had, the force of law:
(a)
in relation to withholding tax - in respect of dividends or interest derived on or after 1 July 1975 and in relation to which the convention remains effective; and
(b)
in relation to tax other than withholding tax - in respect of income of any year of income commencing on or after 1 July 1975 and in relation to which the convention remains effective.
6A(2)
(Omitted by No 165 of 1989)
6A(2A)
(Omitted by No 165 of 1989)
History
Former s 6A(2A) inserted by No 28 of 1981.
6A(3)
The provisions of the previous Canadian agreement, so far as those provisions affect Australian tax, continue to have the force of law in relation to tax in respect of income in relation to which the agreement remains effective.
6A(4)
(Repealed by No 129 of 2002)
S 6A substituted by No 127 of 1980.
6AB
(Repealed) SECTION 6AB PROTOCOL WITH CANADA
(Repealed by No 45 of 2011)
History
S 6AB repealed by No 45 of 2011, s 3 and Sch 1 item 15, effective 27 June 2011. For transitional provisions see note under s 3(1). S 6AB formerly read:
SECTION 6AB PROTOCOL WITH CANADA
6AB
Subject to this Act, on and after the date of entry into force of the Canadian protocol, the provisionsof the protocol, so far as those provisions affect Australian tax, have, and are to be taken to have had, the force of law according to their tenor.
S 6AB inserted by No 129 of 2002.
SECTION 6B
CONVENTION WITH NEW ZEALAND
6B(1)
This section applies in relation to:
(a)
income described in paragraph 3 of Article 17 of the New Zealand convention, derived in respect of personal activities exercised by a sportsperson; and
(b)
income derived by an individual covered by subsection
(4) in respect of a sportsperson, if that income is derived from providing services mentioned in paragraph
(4)(a) to:
(i)
the sportsperson in deriving income mentioned in paragraph (a); or
(ii)
a recognised team regularly playing in a league competition (as described in paragraph 3 of Article 17 of the New Zealand convention) of which the sportsperson is a member.
6B(2)
Subsection
(3) applies in determining whether an individual was present in Australia on a particular day, for the purposes of determining whether the condition in subparagraph 2(a) of Article 14 of the New Zealand convention was met in relation to:
(a)
the 2020-21 year of income; or
(b)
the 2021-22 year of income.
6B(3)
Treat the individual as not being present in Australia on that day if it was impractical, because of measures or arrangements related to the coronavirus known as COVID-19, for the individual to leave Australia on that day and continue to:
(a)
exercise the personal activities mentioned in paragraph
(1)(a); or
(b)
provide the services mentioned in paragraph
(1)(b).
6B(4)
This subsection covers, in respect of a sportsperson, an individual who:
(a)
provides any of the following services to the sportsperson or to a recognised team of which the sportsperson is a member:
(i)
services as a manager, coach, trainer, runner, physician or physiotherapist;
(ii)
advertising or promotional services;
(iii)
any other similar services; and
(b)
is employed by a person that:
(i)
employs the sportsperson; or
(ii)
if a body corporate employs the sportsperson - is a related body corporate (within the meaning of the Corporations Act 2001) of that body corporate.
6B(5)
In this section:
recognised team
has the same meaning as in paragraph 3 of Article 17 of the New Zealand convention.
sportsperson
has the same meaning as in paragraph 3 of Article 17 of the New Zealand convention.
History
S 6B inserted by No 72 of 2021, s 3 and Sch 5 item 2, effective 1 July 2021.
Former s 6B repealed by No 45 of 2011, s 3 and Sch 1 item 15, effective 27 June 2011. For transitional provisions see note under s 3(1). S 6B formerly read:
SECTION 6B THE 2009 NEW ZEALAND CONVENTION
6B
Subject to this Act, on and after the date of entry into force of a provision of the 2009 New Zealand convention, the provision has the force of law according to its tenor.
Former s 6B substituted by No 13 of 2010, s 3 and Sch 1 item 14, effective 11 March 2010. S 6B formerly read:
SECTION 6B AGREEMENT WITH NEW ZEALAND
6B(1A)
Subject to this Act, on and after the date of entry into force of the New Zealand agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have the force of law according to their tenor.
History
S 6B(1A) inserted by No 22 of 1995.
6B(1)
Subject to this Act, the provisions of the 1972 New Zealand agreement, so far as those provisions affect Australian tax, continue to have the force of law:
(a)
in relation to withholding tax - in respect of dividends or interest derived on or after 1 July 1972, and in relation to which the agreement remains effective; and
(b)
in relation to tax other than withholding tax - in respect of income of the year of income that commenced on 1 July 1972, or of a subsequent year of income in relation to which the agreement remains effective.
History
S 6B(1) amended by No 22 of 1995.
6B(2)
Subject to this Act, the provisions of subparagraph (b) of paragraph (3) of Article 18 of the 1972 New Zealand agreement continue to have the force of law for the purposes of paragraph 23(q) of the Assessment Act in relation to income of the year of income that ended on 30 June 1972, and of the 13 years of income immediately preceding that year of income.
History
S 6B(2) amended by No 22 of 1995.
6B(3)
The provisions of the 1960 New Zealand agreement, so far as those provisions affect Australian tax, continue to have the force of law in relation to tax in respect of income in relation to which the agreement remains effective.
History
S 6B(3) amended by No 22 of 1995.
Former s 6B amended by No 52 of 1976 and substituted by No 11 of 1973.
6C
(Repealed) SECTION 6C PREVIOUS NEW ZEALAND AGREEMENTS
(Repealed by No 45 of 2011)
History
S 6C repealed by No 45 of 2011, s 3 and Sch 1 item 15, effective 27 June 2011. For transitional provisions see note under s 3(1). S 6C formerly read:
SECTION 6C PREVIOUS NEW ZEALAND AGREEMENTS
6C
The provisions of each of the following agreements:
(a)
the 1960 New Zealand agreement;
(b)
the 1972 New Zealand agreement;
(c)
the 1995 New Zealand agreement;
(d)
the 1995 New Zealand agreement as amended by the 2005 New Zealand protocol;
so far as those provisions affect Australian tax, continue to have the force of law for tax in respect of income or fringe benefits in relation to which the agreement remains effective.
S 6C substituted by No 13 of 2010, s 3 and Sch 1 item 14, effective 11 March 2010. S 6C formerly read:
SECTION 6C NEW ZEALAND PROTOCOL
6C
Subject to this Act, on and after the date of entry into force of a provision of the New Zealand protocol, the provision has the force of law according to its tenor.
S 6C inserted by No 100 of 2006, s 3 and Sch 3 item 3, effective 14 September 2006.
SECTION 7
7
AGREEMENT WITH SINGAPORE
Subject to this Act, the provisions of the Singaporean agreement, so far as those provisions affect Australian tax, have the force of law:
(a)
in relation to withholding tax - in respect of dividends or interest derived on or after 1 July 1969, and in relation to which the agreement remains effective; and
(b)
in relation to tax other than withholding tax - in respect of income of the year of income that commences on 1 July 1969, or of a subsequent year of income in relation to which the agreement remains effective.
History
S 7 amended by No 45 of 2011, s 3 and Sch 1 items 16 and 17, by omitting "(1)" from s 7(1) and substituting "Singaporean agreement" for "Singapore agreement" in s 7(1), effective 27 June 2011. For transitional provisions see note under s 3(1). S 7 formerly read:
SECTION 7 AGREEMENT WITH SINGAPORE
7(1)
Subject to this Act, the provisions of the Singapore agreement, so far as those provisions affect Australian tax, have the force of law:
(a)
in relation to withholding tax - in respect of dividends or interest derived on or after 1 July 1969, and in relation to which the agreement remains effective; and
(b)
in relation to tax other than withholding tax - in respect of income of the year of income that commences on 1 July 1969, or of a subsequent year of income in relation to which the agreement remains effective.
7(2)
(Omitted by No 165 of 1989)
History
Former s 7(2) inserted by No 28 of 1981.
7(3)
(Omitted by No 165 of 1989)
History
Former s 7(3) inserted by No 57 of 1983.
7A
(Repealed) SECTION 7A FIRST PROTOCOL WITH SINGAPORE
(Repealed by No 45 of 2011)
History
S 7A repealed by No 45 of 2011, s 3 and Sch 1 item 18, effective 27 June 2011. For transitional provisions see note under s 3(1). S 7A formerly read:
SECTION 7A FIRST PROTOCOL WITH SINGAPORE
7A
Subject to this Act, on and after the date of entry into force of the first Singapore protocol, the provisions of the protocol, so far as those provisions affect Australian tax, have, and are to be taken to have had, the force of law according to their tenor.
S 7A amended by No 115 of 2010, s 3 and Sch 1 item 5, by substituting "the first Singapore protocol" for "the Singapore protocol", effective 9 November 2010.
S 7A inserted by No 165 of 1989.
7B
(Repealed) SECTION 7B SECOND PROTOCOL WITH SINGAPORE
(Repealed by No 45 of 2011)
History
S 7B repealed by No 45 of 2011, s 3 and Sch 1 item 18, effective 27 June 2011. For transitional provisions see note under s 3(1). S 7B formerly read:
SECTION 7B SECOND PROTOCOL WITH SINGAPORE
7B
Subject to this Act, on and after the date of entry into force of the second Singapore protocol, the provisions of the protocol have the force of law according to their tenor.
S 7B inserted by No 115 of 2010, s 3 and Sch 1 item 6, effective 9 November 2010.
8
(Repealed) SECTION 8 CONVENTION WITH JAPAN
(Repealed by No 45 of 2011)
History
S 8 repealed by No 45 of 2011, s 3 and Sch 1 item 18, effective 27 June 2011. For transitional provisions see note under s 3(1). S 8 formerly read:
SECTION 8 CONVENTION WITH JAPAN
8(1)
Subject to this Act, on and after the date of entry into force of the 2008 Japanese convention, the provisions of the convention have the force of law according to their tenor.
8(2)
The provisions of the 1969 Japanese agreement, so far as those provisions affect Australian tax, continue to have the force of law in relation to tax in respect of income in relation to which the agreement remains effective.
Note:
Paragraph 5 of Article 31 of the 2008 Japanese convention preserves the operation of Article 15 of the 1969 Japanese agreement (which provides that the income received in respect of teaching or conducting research by visiting professors and teachers is exempt from tax in the country where the teaching or research activities are conducted). This applies to individuals who are entitled to the benefit at the time when the 2008 Japanese convention enters into force. The benefit is preserved until the individual concerned would have ceased to be entitled to it under the 1969 Japanese agreement.
S 8 substituted by No 102 of 2008, s 3 and Sch 1 item 8, effective 3 October 2008. S 8 formerly read:
SECTION 8 AGREEMENT WITH JAPAN
8(1)
Subject to this Act, on and after the date of entry into force of the Japanese agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have the force of law-
(a)
in relation to withholding tax - in respect of dividends or interest derived on or after 1 July in the calendar year in which the agreement enters into force, and in relation to which the agreement remains effective; and
(b)
in relation to tax other than withholding tax - in respect of income of the year of income that commences on 1 July in the calendar year in which the agreement enters into force, or of a subsequent year of income in relation to which the agreement remains effective.
History
S 8(1) amended by No 52 of 1976.
8(2)
For the purposes of paragraph 5 of the protocol that forms part of the Japanese agreement, as having the force of law in accordance with the last preceding subsection, section 6AA of the Assessment Act shall be taken to be a provision by virtue of which Australian tax law is in force in relation to the areas referred to in that paragraph.
History
S 8(2) amended by No 129 of 1974.
8(3)
(Omitted by No 165 of 1989)
9
(Repealed) SECTION 9 THE 2006 FRENCH CONVENTION
(Repealed by No 45 of 2011)
History
S 9 repealed by No 45 of 2011, s 3 and Sch 1 item 18, effective 27 June 2011. For transitional provisions see note under s 3(1). S 9 formerly read:
SECTION 9 THE 2006 FRENCH CONVENTION
9
Subject to this Act, on and after the date of entry into force of a provision of the 2006 French convention, the provision has the force of law according to its tenor.
S 9 and 9A substituted for s 9, 9A and 9B by No 136 of 2007, s 3 and Sch 1 item 10, effective 3 September 2007. S 9 formerly read:
SECTION 9 AIRLINE PROFITS AGREEMENT WITH FRANCE
9(1)
Subject to this Act, on and after the date of entry into force of the French airline profits agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have, and shall be deemed to have had, the force of law in relation to tax in respect of income of the year of income that commenced on 1 July 1966, or of a subsequent year of income in relation to which the agreement remains effective.
9(2)
(Omitted by No 165 of 1989)
9A
(Repealed) SECTION 9A PREVIOUS FRENCH AGREEMENTS ETC
(Repealed by No 45 of 2011)
History
S 9A repealed by No 45 of 2011, s 3 and Sch 1 item 18, effective 27 June 2011. For transitional provisions see note under s 3(1). S 9A formerly read:
SECTION 9A PREVIOUS FRENCH AGREEMENTS ETC
9A
The provisions of:
(a)
the 1969 French airline profits agreement; and
(b)
the 1976 French agreement; and
(c)
the 1976 French agreement as amended by the 1989 French protocol;
so far as those provisions affect Australian tax, continue to have the force of law for tax in respect of income in relation to which the agreements remain effective.
Note 1:
Paragraph 3 of Article 30 of the 2006 French convention preserves the operation of Article 19 of the 1976 French agreement (which provides that the income received in respect of teaching or conducting research by visiting professors and teachers is taxed only in their home country). This applies to individuals who are entitled to the benefit at the time when the 2006 French convention enters into force. The benefit is preserved until the individual concerned would have ceased to be entitled to it under the 1976 French agreement.
Note 2:
Article 19 of the 1976 French agreement is affected by Article 8 of the 1989 French protocol.
S 9 and 9A substituted for s 9, 9A and 9B by No 136 of 2007, s 3 and Sch 1 item 10, effective 3 September 2007. S 9A formerly read:
SECTION 9A AGREEMENT WITH FRANCE
9A(1)
Subject to this Act, on and after the date of entry into force of the French agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have, and shall be deemed to have had, the force of law-
(a)
in relation to withholding tax - inrespect of dividends or interest derived on or after 1 January 1973 and in relation to which the agreement remains effective; and
(b)
in relation to tax other than withholding tax - in respect of income of the year of income that commenced on 1 July 1972 and of a subsequent year of income in relation to which the agreement remains effective.
9A(2)
(Omitted by No 165 of 1989)
9A(3)
For the purposes of the Assessment Act-
(a)
income from a lease of land or from any other direct interest in or over land, being income that under paragraph (2) of Article 5 of the French agreement is to be regarded as income from real property, shall be deemed to be derived from sources in the place in which the land is situated;
(b)
income from the alienation of a lease of land or of any other direct interest in or over land, being income to which paragraph (1) of Article 12 of the French agreement applies, shall be deemed to be derived from sources in the place in which the land is situated; and
(c)
income from the alienation of shares or comparable interests in a real property co-operative or in a company the assets of which consist wholly or principally of real property, being income to which paragraph (2) of Article 12 of the French agreement applies, shall be deemed to be derived from sources in the place in which the real property is situated.
9A(4)
In paragraph (3)(c)-
(a)
the references to real property second and third occurring include a reference to a lease of land and any other direct interest in or over land; and
(b)
the reference to the place in which real property is situated shall, in its application by virtue of paragraph (a) of this subsection in relation to a lease of land or to any other direct interest in or over land, be construed as a reference to the place where the land to which the lease or other direct interest relates is situated.
9A(5)
Where an amount is to be included in the assessable income of a taxpayer in accordance with subparagraph (b) of paragraph (6) or subparagraph (b) of paragraph (7) of Article 9 of the French agreement-
(a)
the amount shall be included in the assessable income of the taxpayer of the year of income in which the amount is paid; and
(b)
the amount shall, for the purposes of this Act and the Assessment Act, be deemed to be a dividend.
S 9A inserted by No 52 of 1976.
9B
(Repealed) SECTION 9B PROTOCOL WITH FRANCE
(Repealed by No 136 of 2007)
History
S 9 and 9A substituted for s 9, 9A and 9B by No 136 of 2007, s 3 and Sch 1 item 10, effective 3 September 2007. S 9B formerly read:
SECTION 9B PROTOCOL WITH FRANCE
9B
Subject to this Act, on and after the date of entry into force of the French protocol, the provisions of the protocol, so far as those provisions affect Australian tax, have, and are to be taken to have had, the force of law according to their tenor.
S 9B inserted by No 165 of 1989.
10
(Repealed) SECTION 10 AIRLINE PROFITS AGREEMENT WITH ITALY
(Repealed by No 45 of 2011)
History
S 10 repealed by No 45 of 2011, s 3 and Sch 1 item 18, effective 27 June 2011. For transitional provisions see note under s 3(1). S 10 formerly read:
SECTION 10 AIRLINE PROFITS AGREEMENT WITH ITALY
10(1)
Subject to this Act, on and after the date of entry into force of the Italian airline profits agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have, and shall be deemed to have had, the force of law in relation to tax in respect of income of the year of income that commenced on 1 July 1966, or of a subsequent year of income in relation to which the agreement remains effective.
History
S 10(1) amended by No 57 of 1983 and No 52 of 1976.
10(2)
(Omitted by No 165 of 1989)
History
Former s 10(2) amended by No 57 of 1983.
S 10 inserted by No 11 of 1973.
SECTION 10A
10A
CONVENTION WITH ITALY
Subject to this Act, on and after the date of entry into force of the Italian convention, the provisions of the convention, so far as those provisions affect Australian tax, have, and shall be deemed to have had, the force of law-
(a)
in relation to withholding tax - in respect of dividends or interest derived on or after 1 July 1976 and in relation to which the convention remains effective; and
(b)
in relation to tax other than withholding tax - in respect of income of any year of income commencing on or after 1 July 1976 and in relation to which the convention remains effective.
History
S 10A amended by No 45 of 2011, s 3 and Sch 1 item 19, by omitting "(1)" from s 10A(1), effective 27 June 2011. For transitional provisions see note under s 3(1). S 10A formerly read:
SECTION 10A CONVENTION WITH ITALY
10A(1)
Subject to this Act, on and after the date of entry into force of the Italian convention, the provisions of the convention, so far as those provisions affect Australian tax, have, and shall be deemed to have had, the force of law-
(a)
in relation to withholding tax - in respect of dividends or interest derived on or after 1 July 1976 and in relation to which the convention remains effective; and
(b)
in relation to tax other than withholding tax - in respect of income of any year of income commencing on or after 1 July 1976 and in relation to which the convention remains effective.
10A(2)
(Omitted by No 165 of 1989)
Former s 10A inserted by No 57 of 1983.
SECTION 11
EARLIER AGREEMENT WITH GERMANY
11(1)
Subject to this Act, the provisions of the German 1972 agreement, so far as those provisions affect Australian tax, continue to have the force of law-
(a)
in relation to withholding tax - in respect of dividends or interest derived on or after 1 July 1971 and in relation to which the agreement remains effective; and
(b)
in relation to tax other than withholding tax - in respect of income of the year of income that commenced on 1 July 1971 and of a subsequent year of income in relation to which the agreement remains effective.
History
S 11(1) amended by No 64 of 2016, s 3 and Sch 1 item 5, by substituting "Subject to this Act, the provisions of the German 1972 agreement, so far as those provisions affect Australian tax, continue to have" for "Subject to this Act, on and after the date of entry into force of the German agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have, and shall be deemed to have had,", effective 20 October 2016.
11(2)
For the purposes of the Assessment Act, income that:
(a)
is derived by a person who is a resident of the Federal Republic of Germany for the purposes of the German 1972 agreement; and
(b)
is income in relation to which the agreement remains effective; and
(c)
is income that, under Articles 6 to 8 and 10 to 16 of the agreement, may be taxed in Australia;
is taken to be derived from sources in Australia.
History
S 11(2) inserted by No 64 of 2016, s 3 and Sch 1 item 6, effective 20 October 2016.
11(3)
(Repealed by No 64 of 2016)
History
S 11(3) repealed by No 64 of 2016, s 3 and Sch 1 item 6, effective 20 October 2016. S 11(3) formerly read:
11(3)
For the purposes of the Assessment Act, income derived by a person who is a resident of the Federal Republic of Germany for the purposes of the German agreement, being income that under Articles 6 to 8 and 10 to 16 of the agreement may be taxed in Australia, shall be deemed to be derived from sources in Australia.
History
S 11 inserted by No 129 of 1974.
SECTION 11A
11A
AGREEMENT WITH THE NETHERLANDS
For the purposes of the Assessment Act, income from a lease of land, income from any other direct interest in or over land, whether or not improved, and income from debt-claims of every kind, excluding bonds or debentures, secured by mortgage of real property or of any other direct interest in or over land, being income that under Article 6 of the Netherlands agreement (as amended by the Netherlands protocol (No. 2)) is to be regarded as income from real property, shall be deemed to be derived from sources in the place in which the land to which the lease, other direct interest or mortgage relates is situated.
History
S 11A amended by No 45 of 2011, s 3 and Sch 1 items 20 to 22, by repealing s 11A(1), omitting "(3)" from s 11A(3), and inserting "(as amended by the Netherlands protocol (No. 2))" in s 11A(3), effective 27 June 2011. For transitional provisions see note under s 3(1). S 11A formerly read:
SECTION 11A AGREEMENT WITH THE KINGDOM OF THE NETHERLANDS
11A(1)
Subject to this Act, on and after the date of entry into force of the Netherlands agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have, and shall be deemed to have had, the force of law-
(a)
in relation to withholding tax - in respect of dividends or interest derived on or after 1 July 1975 and in relation to which the agreement remains effective; and
(b)
in relation to tax other than withholding tax - in respect of income of the year of income that commenced on 1 July 1975 and of a subsequent year of income in relation to which the agreement remains effective.
11A(2)
(Omitted by No 165 of 1989)
11A(3)
For the purposes of the Assessment Act, income from a lease of land, income from any other direct interest in or over land, whether or not improved, and income from debt-claims of every kind, excluding bonds or debentures, secured by mortgage of real property or of any other direct interest in or over land, being income that under Article 6 of the Netherlands agreement is to be regarded as income from real property, shall be deemed to be derived from sources in the place in which the land to which the lease, other direct interest or mortgage relates is situated.
S 11A inserted by No 52 of 1976.
11AA
(Repealed) SECTION 11AA SECOND PROTOCOL WITH THE KINGDOM OF THE NETHERLANDS
(Repealed by No 45 of 2011)
History
S 11AA repealed by No 45 of 2011, s 3 and Sch 1 item 23, effective 27 June 2011. For transitional provisions see note under s 3(1). S 11AA formerly read:
SECTION 11AA SECOND PROTOCOL WITH THE KINGDOM OF THE NETHERLANDS
11AA(1)
Subject to this Act, on and after the date of entry into force of the second Netherlands protocol, the provisions of the protocol, so far as those provisions affect Australian tax, have, and shall be deemed to have had, the force of law in relation to tax in respect of-
(a)
income, being income to which subparagraph (1)(a) of Article 3 of the protocol applies, of any year of income commencing on or after 1 July 1988; and
(b)
income, being income to which subparagraph (1)(b) of Article 3 of the protocol applies, of any year of income commencing on or after 1 July 1986.
11AA(2)
(Omitted by No 165 of 1989)
S 11AA inserted by No 112 of 1986.
11B
(Repealed) SECTION 11B AIRLINE PROFITS AGREEMENT WITH THE HELLENIC REPUBLIC
(Repealed by No 45 of 2011)
History
S 11B repealed by No 45 of 2011, s 3 and Sch 1 item 23, effective 27 June 2011. For transitional provisions see note under 3(1). S 11B formerly read:
SECTION 11B AIRLINE PROFITS AGREEMENT WITH THE HELLENIC REPUBLIC
11B(1)
Subject to this Act, on and after the date of entry into force of the Greek airline profits agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have, and shall be deemed to have had, the force of law in relation to tax in respect of income derived on or after 1 March 1972 and in relation to which the agreement remains effective.
11B(2)
(Omitted by No 165 of 1989)
S 11B amended by No 129 of 2002 and inserted by No 134 of 1977.
SECTION 11C
11C
AGREEMENT WITH BELGIUM
Subject to this Act, on and after the date of entry into force of the
Belgian agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have the force of law-
(a)
in relation to withholding tax - in respect of dividends or interest derived on or after 1 January in the calendar year immediately following that in which the agreement enters into force and in relation to which the agreement remains effective; and
(b)
in relation to tax other than withholding tax - in respect of income of any year of income commencing on or after 1 July in the calendar year immediately following that in which the agreement enters into force and in relation to which the agreement remains effective.
History
S 11C amended by No 45 of 2011, s 3 and Sch 1 item 24, by omitting "(1)" from s 11C(1), effective 27 June 2011. For transitional provisions see note under s 3(1). S 11C formerly read:
SECTION 11C AGREEMENT WITH THE KINGDOM OF BELGIUM
11C(1)
Subject to this Act, on and after the date of entry into force of the Belgian agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have the force of law-
(a)
in relation to withholding tax - in respect of dividends or interest derived on or after 1 January in the calendar year immediately following that in which the agreement enters into force and in relation to which the agreement remains effective; and
(b)
in relation to tax other than withholding tax - in respect of income of any year of income commencing on or after 1 July in the calendar year immediately following that in which the agreement enters into force and in relation to which the agreement remains effective.
11C(2)
(Omitted by No 165 of 1989)
S 11C inserted by No 134 of 1977.
11CA
(Repealed) SECTION 11CA FIRST PROTOCOL WITH THE KINGDOM OF BELGIUM
(Repealed by No 45 of 2011)
History
S 11CA repealed by No 45 of 2011, s 3 and Sch 1 item 25, effective 27 June 2011. For transitional provisions see note under s 3(1). S 11CA formerly read:
SECTION 11CA FIRST PROTOCOL WITH THE KINGDOM OF BELGIUM
11CA(1)
Subject to this Act, on and after the date of entry into force of the first Belgian protocol, the provisions of the protocol, so far as those provisions affect Australian tax, have the force of law in relation to tax in respect of income of any year of income commencing on or after 1 July in the calendar year immediately following that in which the protocol enters into force.
History
S 11CA(1) amended by No 13 of 2010, s 3 and Sch 1 item 15, by inserting "first" after "entry into force of the", effective 11 March 2010.
11CA(2)
(Omitted by No 165 of 1989)
S 11CA inserted by No 125 of 1984.
11CB
(Repealed) SECTION 11CB SECOND PROTOCOL WITH THE KINGDOM OF BELGIUM
(Repealed by No 45 of 2011)
History
S 11CB repealed by No 45 of 2011, s 3 and Sch 1 item 25, effective 27 June 2011. For transitional provisions see note under s 3(1). S 11CB formerly read:
SECTION 11CB SECOND PROTOCOL WITH THE KINGDOM OF BELGIUM
11CB
Subject to this Act, on and after the date of entry into force of the second Belgian protocol, the provisions of the protocol have the force of law according to their tenor.
S 11CB inserted by No 13 of 2010, s 3 and Sch 1 item 16, effective 11 March 2010.
SECTION 11D
11D
AGREEMENT WITH THE PHILIPPINES
Subject to this Act, on and after the date of entry into force of the Philippine agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have, and shall be deemed to have had, the force of law-
(a)
in relation to withholding tax - in respect of dividends or interest derived on or after 1 January in the calendar year in which the agreement enters into force and in relation to which the agreement remains effective; and
(b)
in relation to tax other than withholding tax - in respect of income of any year of income commencing on or after 1 July in the calendar year in which the agreement enters into force and in relation to which the agreement remains effective.
History
S 11D amended by No 45 of 2011, s 3 and Sch 1 item 26, by omitting "(1)" from s 11D(1), effective 27 June 2011. For transitional provisions see note under s 3(1). S 11D formerly read:
SECTION 11D AGREEMENT WITH THE REPUBLIC OF THE PHILIPPINES
11D(1)
Subject to this Act, on and after the date of entry into force of the Philippine agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have, and shall be deemed to have had, the force of law-
(a)
in relation to withholding tax - in respect of dividends or interest derived on or after 1 January in the calendar year in which the agreement enters into force and in relation to which the agreement remains effective; and
(b)
in relation to tax other than withholding tax - in respect of income of any year of income commencing on or after 1 July in the calendar year in which the agreement enters into force and in relation to which the agreement remains effective.
11D(2)
(Omitted by No 165 of 1989)
11D(3)
(Omitted by No 165 of 1989)
History
Former s 11D(3) inserted by No 28 of 1981.
S 11D inserted by No 23 of 1980.
SECTION 11E
11E
EARLIER AGREEMENT WITH SWITZERLAND
Subject to this Act, the provisions of the Swiss 1980 agreement, so far as those provisions affect Australian tax, continue to have the force of law-
(a)
in relation to withholding tax - in respect of dividends or interest derived on or after 1 January 1979 and in relation to which the agreement remains effective; and
(b)
in relation to tax other than withholding tax - in respect of income of the year of income that commenced on 1 July 1979 and of a subsequent year of income in relation to which the agreement remains effective.
History
S 11E amended by No 105 of 2014, s 3 and Sch 1 item 7, by substituting "Subject to this Act, the provisions of the Swiss 1980 agreement, so far as those provisions affect Australian tax, continue to have" for "Subject to this Act, on and after the date of entry into force of the Swiss agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have, and shall be deemed to have had,", effective 24 September 2014.
S 11E amended by No 45 of 2011, s 3 and Sch 1 item 27, by omitting "(1)" from s 11E(1), effective 27 June 2011. For transitional provisions see note under s 3(1). S 11E formerly read:
SECTION 11E AGREEMENT WITH THE SWISS FEDERAL COUNCIL
11E(1)
Subject to this Act, on and after the date of entry into force of the Swiss agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have, and shall be deemed to have had, the force of law-
(a)
in relation to withholding tax - in respect of dividends or interest derived on or after 1 January 1979 and in relation to which the agreement remains effective; and
(b)
in relation to tax other than withholding tax - in respect of income of the year of income that commenced on 1 July 1979 and of a subsequent year of income in relation to which the agreement remains effective.
11E(2)
(Omitted by No 165 of 1989)
S 11E inserted by No 23 of 1980.
SECTION 11F
AGREEMENT WITH MALAYSIA
11F(1)
Subject to this Act, on and after the date of entry into force of the Malaysian agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have, and shall be deemed to have had, the force of law-
(a)
in relation to withholding tax - in respect of dividends or interest derived on or after 1 July 1979 and in relation to which the agreement remains effective; and
(b)
in relation to tax other than withholding tax - in respect of income of any year of income that commenced on or after 1 July 1979 and in relation to which the agreement remains effective.
11F(2)
The Malaysian agreement, as amended by:
(a)
the Malaysian protocol (No. 1); and
(b)
the Malaysian protocol (No. 2); and
(c)
the Malaysian protocol (No. 3);
does not subject to Australian tax any interest, or royalties, paid by a resident of Australia to a resident of Malaysia that, apart from that agreement, would not be subject to Australian tax.
History
S 11F(2) amended by No 45 of 2011, s 3 and Sch 2 items 15 and 16, by inserting "and" at the end of para (b) and inserting para (c), effective 27 June 2011.
S 11F(2) inserted by No 45 of 2011, s 3 and Sch 1 item 28, effective 27 June 2011. For transitional provisions see note under s 3(1).
Former s 11F(2) omitted by No 165 of 1989.
11F(3)
(Omitted by No 165 of 1989)
11F(4)
(Repealed by No 45 of 2011)
History
S 11F(4) repealed by No 45 of 2011, s 3 and Sch 1 item 29, effective 27 June 2011. For transitional provisions see note under s 3(1). S 11F(4) formerly read:
11F(4)
The provisions of the Malaysian agreement shall not have the effect of subjecting to Australian tax interest or royalties paid by a resident of Australia to a resident of Malaysia that, but for that agreement, would not be subject to Australian tax.
11F(5)
(Omitted by No 165 of 1989)
History
S 11F amended by No 57 of 1983 and inserted by No 28 of 1981.
SECTION 11FA
FIRST PROTOCOL WITH MALAYSIA
11FA(1)
(Repealed by No 45 of 2011)
History
S 11FA(1) repealed by No 45 of 2011, s 3 and Sch 1 item 30, effective 27 June 2011. For transitional provisions see note under s 3(1). S 11FA(1) formerly read:
11FA(1)
Subject to this Act, on and after the date of entry into force of the first Malaysian protocol, the provisions of the protocol, so far as those provisions affect Australian tax, have, and are taken to have had, the force of law according to their tenor.
S 11FA(1) amended by No 129 of 2002.
11FA(2)
Nothing in section
170 of the
Income Tax Assessment Act 1936 prevents the amendment of an assessment made before the commencement of this section for the purpose of giving effect to the Malaysian protocol (No. 1).
History
S 11FA(2) amended by No 45 of 2011, s 3 and Sch 1 item 31, by substituting "Malaysian protocol (No. 1)" for "first Malaysian protocol", effective 27 June 2011. For transitional provisions see note under s 3(1).
S 11FA(2) amended by No 129 of 2002.
11FA(3)
Nothing in former Division
19 of Part
III of the
Income Tax Assessment Act 1936 prevents the amendment of a determination made, or taken to have been made, under that Division before the commencement of this section for the purpose of giving effect to the Malaysian protocol (No. 1).
History
S 11FA(3) amended by No 45 of 2011, s 3 and Sch 1 item 31, by substituting "Malaysian protocol (No. 1)" for "first Malaysian protocol", effective 27 June 2011. For transitional provisions see note under s 3(1).
S 11FA(3) amended by No 143 of 2007, s 3 and Sch 1 item 209, by inserting "former" before "Division 19", applicable in relation to income years, statutory accounting periods and notional accounting periods starting on or after the first 1 July that occurs after 24 September 2007.
S 11FA(3) amended by No 129 of 2002.
History
S 11FA inserted by No 149 of 1999.
SECTION 11FB
SECOND PROTOCOL WITH MALAYSIA
11FB(1)
(Repealed by No 45 of 2011)
History
S 11FB(1) repealed by No 45 of 2011, s 3 and Sch 1 item 32, effective 27 June 2011. For transitional provisions see note under s 3(1). S 11FB(1) formerly read:
11FB(1)
Subject to this Act, on and after the date of entry into force of the second Malaysian protocol, the provisions of that protocol, so far as those provisions affect Australian tax, have, and are taken to have had, the force of law according to their tenor.
11FB(2)
Nothing in section
170 of the
Income Tax Assessment Act 1936 prevents the amendment of an assessment made before the commencement of this section for the purpose of giving effect to the Malaysian protocol (No. 2).
History
S 11FB(2) amended by No 45 of 2011, s 3 and Sch 1 item 33, by substituting "Malaysian protocol (No. 2)" for "second Malaysian protocol", effective 27 June 2011. For transitional provisions see note under s 3(1).
11FB(3)
Nothing in former Division
19 of Part
III of the
Income Tax Assessment Act 1936 prevents the amendment of a determination made, or taken to have been made, under that Division before the commencement of this section for the purpose of giving effect to the Malaysian protocol (No. 2).
History
S 11FB(3) amended by No 45 of 2011, s 3 and Sch 1 item 33, by substituting "Malaysian protocol (No. 2)" for "second Malaysian protocol", effective 27 June 2011. For transitional provisions see note under s 3(1).
S 11FB(3) amended by No 143 of 2007, s 3 and Sch 1 item 210, by inserting "former" before "Division 19", applicable in relation to income years, statutory accounting periods and notional accounting periods starting on or after the first 1 July that occurs after 24 September 2007.
History
S 11FB inserted by No 129 of 2002.
SECTION 11G
11G
AGREEMENT WITH SWEDEN
Subject to this Act, on and after the date of entry into force of the Swedish agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have the force of law-
(a)
in relation to withholding tax - in respect of dividends or interest derived on or after 1 January in the calendar year immediately following that in which the agreement enters into force and in relation to which the agreement remains effective; and
(b)
in relation to tax other than withholding tax - in respect of income of any year of income commencing on or after 1 July in the calendar year immediately following that in which the agreement enters into force and in relation to which the agreement remains effective.
History
S 11G amended by No 45 of 2011, s 3 and Sch 1 item 34, by omitting "(1)" from s 11G(1), effective 27 June 2011. For transitional provisions see note under s 3(1). S 11G formerly read:
SECTION 11G AGREEMENT WITH SWEDEN
11G(1)
Subject to this Act, on and after the date of entry into force of the Swedish agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have the force of law-
(a)
in relation to withholding tax - in respect of dividends or interest derived on or after 1 January in the calendar year immediately following that in which the agreement enters into force and in relation to which the agreement remains effective; and
(b)
in relation to tax other than withholding tax - in respect of income of any year of income commencing on or after 1 July in the calendar year immediately following that in which the agreement enters into force and in relation to which the agreement remains effective.
11G(2)
(Omitted by No 165 of 1989)
S 11G inserted by No 28 of 1981.
SECTION 11H
AGREEMENT WITH DENMARK
11H(1)
Subject to this Act, on and after the date of entry into force of the Danish agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have the force of law-
(a)
in relation to withholding tax - in respect of dividends or interest derived on or after 1 January in the calendar year immediately following that in which the agreement enters into force and in relation to which the agreement remains effective; and
(b)
in relation to tax other than withholding tax - in respect of income of any year of income commencing on or after 1 July in the calendar year immediately following that in which the agreement enters into force and in relation to which the agreement remains effective.
11H(2)
(Omitted by No 165 of 1989)
11H(3)
Where an amount of tax credit is to be treated as assessable income of a taxpayer in accordance with paragraph (7) of Article 10 of the Danish agreement-
(a)
the amount of the tax credit shall be included in the assessable income of the taxpayer of the year of income in which the dividend to which the tax credit relates is paid; and
(b)
the amount of the tax credit shall be added to the amount of the dividend to which the tax credit relates and the sum of the two amounts shall be deemed to be one dividend for the purposes of this Act and the Assessment Act.
History
S 11H inserted by No 143 of 1981.
SECTION 11J
11J
AGREEMENT WITH INDIA
The Indian agreement (as amended by the Indian protocol (No. 1)) does not have the effect of subjecting to Australian tax any payments or credits, whether periodical or not, and however described or computed, to the extent to which they:
(a)
are made as consideration for the rendering of any services covered by paragraph 12(3)(g) of that agreement (as amended); and
(b)
are not royalties (within the meaning of the
Income Tax Assessment Act 1936); and
(c)
would, apart from paragraph 12(3)(g) and Article 23 of that agreement (as amended), not be subject to Australian tax.
Note:
This section does not prevent payments or credits from being subjected to Australian tax because of another provision of that agreement. For example, because of Articles 7 and 23 of that agreement.
History
S 11J inserted by No 60 of 2022, s 3 and Sch 1 item 3, applicable in relation to assessments for years of income starting on or after 29 December 2022.
Former s 11J amended by No 165 of 1989 and inserted by No 57 of 1983.
SECTION 11K
11K
AGREEMENT WITH IRELAND
Subject to this Act, on and after the date of entry into force of the
Irish agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have the force of law-
(a)
in relation to withholding tax - in respect of dividends or interest derived on or after 1 July in the calendar year immediately following that in which the agreement enters into force and in relation to which the agreement remains effective; and
(b)
in relation to tax other than withholding tax - in respect of income of any year of income commencing on or after 1 July in the calendar year immediately following that in which the agreement enters into force and in relation to which the agreement remains effective.
History
S 11K amended by No 45 of 2011, s 3 and Sch 1 item 35, by omitting "(1)" from s 11K(1), effective 27 June 2011. For transitional provisions see note under s 3(1). S 11K formerly read:
SECTION 11K AGREEMENT WITH IRELAND
11K(1)
Subject to this Act, on and after the date of entry into force of the Irish agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have the force of law-
(a)
in relation to withholding tax - in respect of dividends or interest derived on or after 1 July in the calendar year immediately following that in which the agreement enters into force and in relation to which the agreement remains effective; and
(b)
in relation to tax other than withholding tax - in respect of income of any year of income commencing on or after 1 July in the calendar year immediately following that in which the agreement enters into force and in relation to which the agreement remains effective.
11K(2)
(Omitted by No 165 of 1989)
S 11K inserted by No 57 of 1983.
SECTION 11L
11L
CONVENTION WITH KOREA
Subject to this Act, on and after the date of entry into force of the Korean convention, the provisions of the convention, so far as those provisions affect Australian tax, have, and shall be deemed to have had, the force of law-
(a)
in relation to withholding tax - in respect of dividends or interest derived on or after 1 January 1982 and in relation to which the convention remains effective; and
(b)
in relation to tax other than withholding tax - in respect of income of any year of income commencing on or after 1 July 1982 and in relation to which the convention remains effective.
History
S 11L amended by No 45 of 2011, s 3 and Sch 1 item 36, by omitting "(1)" from s 11L(1), effective 27 June 2011. For transitional provisions see note under s 3(1). S 11L formerly read:
SECTION 11L CONVENTION WITH THE REPUBLIC OF KOREA
11L(1)
Subject to this Act, on and after the date of entry into force of the Korean convention, the provisions of the convention, so far as those provisions affect Australian tax, have, and shall be deemed to have had, the force of law-
(a)
in relation to withholding tax - in respect of dividends or interest derived on or after 1 January 1982 and in relation to which the convention remains effective; and
(b)
in relation to tax other than withholding tax - in respect of income of any year of income commencing on or after 1 July 1982 and in relation to which the convention remains effective.
11L(2)-(4)
(Omitted by No 165 of 1989)
S 11L inserted by No 57 of 1983.
11M
(Repealed) SECTION 11M THE 2006 NORWEGIAN CONVENTION
(Repealed by No 45 of 2011)
History
S 11M repealed by No 45 of 2011, s 3 and Sch 1 item 37, effective 27 June 2011. For transitional provisions see note under s 3(1). S 11M formerly read:
SECTION 11M THE 2006 NORWEGIAN CONVENTION
11M
Subject to this Act, on and after the date of entry into force of a provision of the 2006 Norwegian convention, the provision has the force of law according to its tenor.
S 11M substituted by No 136 of 2007, s 3 and Sch 2 item 5, effective 3 September 2007. S 11M formerly read:
SECTION 11M CONVENTION WITH THE KINGDOM OF NORWAY
11M(1)
Subject to this Act, on and after the date of entry into force of the Norwegian convention, the provisions of the convention, so far as those provisions affect Australian tax, have, and shall be deemed to have had, the force of law-
(a)
in relation to withholding tax - in respect of dividends or interest derived on or after 1 July 1982 and in relation to which the convention remains effective; and
(b)
in relation to tax other than withholding tax - in respect of income of any year of income commencing on or after 1 July 1982 and in relation to which the convention remains effective.
11M(2)-(3)
(Omitted by No 165 of 1989)
S 11M inserted by No 57 of 1983.
11MA
(Repealed) SECTION 11MA THE 1982 NORWEGIAN CONVENTION
(Repealed by No 45 of 2011)
History
S 11MA repealed by No 45 of 2011, s 3 and Sch 1 item 37, effective 27 June 2011. For transitional provisions see note under s 3(1). S 11MA formerly read:
SECTION 11MA THE 1982 NORWEGIAN CONVENTION
11MA
The provisions of the 1982 Norwegian convention, so far as those provisions affect Australian tax, continue to have the force of law for tax in respect of income in relation to which the convention remains effective.
S 11MA inserted by No 136 of 2007, s 3 and Sch 2 item 5, effective 3 September 2007.
SECTION 11N
11N
AGREEMENT WITH MALTA
Subject to this Act, on and after the date of entry into force of the Maltese agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have the force of law-
(a)
in relation to withholding tax - in respect of dividends or interest derived on or after 1 January in the calendar year next following that in which the agreement enters into force and in relation to which the agreement remains effective; and
(b)
in relation to tax other than withholding tax - in respect of income of any year of income commencing on or after 1 July in the calendar year next following that in which the agreement enters into force and in relation to which the agreement remains effective.
History
S 11N amended by No 45 of 2011, s 3 and Sch 1 item 38, effective 27 June 2011. For transitional provisions see note under s 3(1). S 11N formerly read:
SECTION 11N AGREEMENT WITH MALTA
11N(1)
Subject to this Act, on and after the date of entry into force of the Maltese agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have the force of law-
(a)
in relation to withholding tax - in respect of dividends or interest derived on or after 1 January in the calendar year next following that in which the agreement enters into force and in relation to which the agreement remains effective; and
(b)
in relation to tax other than withholding tax - in respect of income of any year of income commencing on or after 1 July in the calendar year next following that in which the agreement enters into force and in relation to which the agreement remains effective.
11N(2)-(5)
(Omitted by No 165 of 1989)
S 11N inserted by No 125 of 1984.
11P
(Repealed) SECTION 11P THE 2006 FINNISH AGREEMENT
(Repealed by No 45 of 2011)
History
S 11P repealed by No 45 of 2011, s 3 and Sch 1 item 39, effective 27 June 2011. For transitional provisions see note under s 3(1). S 11P formerly read:
SECTION 11P THE 2006 FINNISH AGREEMENT
11P
Subject to this Act, on and after the date of entry into force of a provision of the 2006 Finnish agreement, the provision has the force of law according to its tenor.
S 11P substituted by No 146 of 2007, s 3 and Sch 1 item 7, effective 24 September 2007. S 11P formerly read:
SECTION 11P AGREEMENT WITH FINLAND
11P(1)
Subject to this Act, on and after the date of entry into force of the Finnish agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have the force of law-
(a)
in relation to withholding tax - in respect of dividends or interest derived on or after 1 January in the calendar year next following that in which the agreement enters into force and in relation to which the agreement remains effective; and
(b)
in relation to tax other than withholding tax - in respect of income of any year of income commencing on or after 1 July in the calendar year next following that in which the agreement enters into force and in relation to which the agreement remains effective.
11P(2)
(Omitted by No 165 of 1989)
S 11P inserted by No 168 of 1985.
11PA
(Repealed) SECTION 11PA PREVIOUS FINNISH AGREEMENTS ETC
(Repealed by No 45 of 2011)
History
S 11PA repealed by No 45 of 2011, s 3 and Sch 1 item 39, effective 27 June 2011. For transitional provisions see note under s 3(1). S 11PA formerly read:
SECTION 11PA PREVIOUS FINNISH AGREEMENTS ETC
11PA
The provisions of:
(a)
the 1984 Finnish agreement; and
(b)
the 1984 Finnish agreement as amended by the 1997 Finnish protocol;
so far as those provisions affect Australian tax, continue to have the force of law for tax in respect of income in relation to which the agreements remain effective.
S 11PA substituted by No 146 of 2007, s 3 and Sch 1 item 7, effective 24 September 2007. S 11PA formerly read:
SECTION 11PA SECOND PROTOCOL WITH FINLAND
11PA
Subject to this Act, on and after the date ofentry into force of the second Finnish protocol, the provisions of the protocol, so far as those provisions affect Australian tax, have the force of law according to their tenor.
S 11PA inserted by No 100 of 2000.
SECTION 11Q
11Q
AIRLINE PROFITS AGREEMENT WITH CHINA
Subject to this Act, on and after the date of entry into force of the Chinese airline profits agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have, and shall be deemed to have had, the force of law in relation to tax in respect of income derived on or after 1 July 1984 and in relation to which the agreement remains effective.
History
S 11Q amended by No 45 of 2011, s 3 and Sch 1 item 40, by omitting "(1)" from s 11Q(1), effective 27 June 2011. For transitional provisions see note under s 3(1). S 11Q formerly read:
SECTION 11Q AIRLINE PROFITS AGREEMENT WITH THE PEOPLE'S REPUBLIC OF CHINA
11Q(1)
Subject to this Act, on and after the date of entry into force of the Chinese airline profits agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have, and shall be deemed to have had, the force of law in relation to tax in respect of income derived on or after 1 July 1984 and in relation to which the agreement remains effective.
11Q(2)
(Omitted by No 165 of 1989)
S 11Q inserted by No 46 of 1986.
SECTION 11R
11R
AGREEMENT WITH AUSTRIA
Subject to this Act, on and after the date of entry into force of the Austrian agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have the force of law-
(a)
in relation to withholding tax - in respect of dividends or interest derived on or after 1 January in the calendar year next following that in which the agreement enters into force and in relation to which the agreement remains effective; and
(b)
in relation to tax other than withholding tax - in respect of income of any year of income commencing on or after 1 July in the calendar year next following that in which the agreement enters into force and in relation to which the agreement remains effective.
History
S 11R amended by No 45 of 2011, s 3 and Sch 1 item 41, by omitting "(1)" from s 11R(1), effective 27 June 2011. For transitional provisions see note under s 3(1). S 11R formerly read:
SECTION 11R AGREEMENT WITH THE REPUBLIC OF AUSTRIA
11R(1)
Subject to this Act, on and after the date of entry into force of the Austrian agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have the force of law-
(a)
in relation to withholding tax - in respect of dividends or interest derived on or after 1 January in the calendar year next following that in which the agreement enters into force and in relation to which the agreement remains effective; and
(b)
in relation to tax other than withholding tax - in respect of income of any year of income commencing on or after 1 July in the calendar year next following that in which the agreement enters into force and in relation to which the agreement remains effective.
11R(2)
(Omitted by No 165 of 1989)
S 11R inserted by No 112 of 1986.
SECTION 11S
AGREEMENT WITH CHINA
11S(1)
(Repealed by No 45 of 2011)
History
S 11S(1) repealed by No 45 of 2011, s 3 and Sch 1 item 42, effective 27 June 2011. For transitional provisions see note under s 3(1). S 11S(1) formerly read:
11S(1)
Subject to this Act, on and after the date of entry into force of the Chinese agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have the force of law according to their tenor.
11S(2)
For the purposes of the Assessment Act, income, profits or gains derived by a person who is a resident of China for the purposes of the
Chinese agreement, being income, profits or gains that under Articles 6 to 8, 10 to 17 and 19 to 22 of the agreement may be taxed in Australia, are taken to be derived from sources in Australia.
11S(3)
The provisions of the
Chinese agreement do not have the effect of subjecting to Australian tax any interest or royalties paid by a resident of Australia to a resident of China that, apart from that agreement, would not be subject to Australian tax.
History
S 11S inserted by No 121 of 1990.
11T
(Repealed) SECTION 11T AGREEMENT WITH THE INDEPENDENT STATE OF PAPUA NEW GUINEA
(Repealed by No 45 of 2011)
History
S 11T repealed by No 45 of 2011, s 3 and Sch 1 item 43, effective 27 June 2011. For transitional provisions see note under s 3(1). S 11T formerly read:
SECTION 11T AGREEMENT WITH THE INDEPENDENT STATE OF PAPUA NEW GUINEA
11T
Subject to this Act, on and after the date of entry into force of the Papua New Guinea agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have the force of law according to their tenor.
S 11T inserted by No 165 of 1989.
11U
(Repealed) SECTION 11U AGREEMENT WITH THAILAND
(Repealed by No 45 of 2011)
History
S 11U repealed by No 45 of 2011, s 3 and Sch 1 item 43, effective 27 June 2011. For transitional provisions see note under s 3(1). S 11U formerly read:
SECTION 11U AGREEMENT WITH THAILAND
11U
Subject to this Act, on and after the date of entry into force of the Thai agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have the force of law according to their tenor.
S 11U inserted by No 165 of 1989.
11V
(Repealed) SECTION 11V AGREEMENT WITH SRI LANKA
(Repealed by No 45 of 2011)
History
S 11V repealed by No 45 of 2011, s 3 and Sch 1 item 43, effective 27 June 2011. For transitional provisions see note under s 3(1). S 11V formerly read:
SECTION 11V AGREEMENT WITH SRI LANKA
11V
Subject to this Act, on and after the date of entry into force of the Sri Lankan agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have the force of law according to their tenor.
S 11V inserted by No 121 of 1990.
11W
(Repealed) SECTION 11W AGREEMENT WITH FIJI
(Repealed by No 45 of 2011)
History
S 11W repealed by No 45 of 2011, s 3 and Sch 1 item 43, effective 27 June 2011. For transitional provisions see note under s 3(1). S 11W formerly read:
SECTION 11W AGREEMENT WITH FIJI
11W
Subject to this Act, on and after the date of entry into force of the Fijian agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have the force of law according to their tenor.
S 11W inserted by No 121 of 1990.
11X
(Repealed) SECTION 11X AGREEMENT WITH THE REPUBLIC OF HUNGARY
(Repealed by No 45 of 2011)
History
S 11X repealed by No 45 of 2011, s 3 and Sch 1 item 43, effective 27 June 2011. For transitional provisions see note under s 3(1). S 11X formerly read:
SECTION 11X AGREEMENT WITH THE REPUBLIC OF HUNGARY
11X
Subject to this Act, on and after the date of entry into force of the Hungarian agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have the force of law according to their tenor.
S 11X inserted by No 96 of 1991.
11Y
(Repealed) SECTION 11Y AGREEMENT WITH KIRIBATI
(Repealed by No 45 of 2011)
History
S 11Y repealed by No 45 of 2011, s 3 and Sch 1 item 43, effective 27 June 2011. For transitional provisions see note under s 3(1). S 11Y formerly read:
SECTION 11Y AGREEMENT WITH KIRIBATI
11Y
Subject to this Act, on and after the date of entry into force of the Kiribati agreement, the provisions of the agreement, as far as those provisions affect Australian tax, have the force of law according to their tenor.
S 11Y inserted by No 96 of 1991.
11Z
(Repealed) SECTION 11Z AGREEMENT WITH THE REPUBLIC OF INDIA
(Repealed by No 45 of 2011)
History
S 11Z repealed by No 45 of 2011, s 3 and Sch 1 item 43, effective 27 June 2011. For transitional provisions see note under s 3(1). S 11Z formerly read:
SECTION 11Z AGREEMENT WITH THE REPUBLIC OF INDIA
11Z
Subject to this Act, on and after the date of entry into force of the Indian agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have the force of law according to their tenor.
S 11Z inserted by No 214 of 1991.
SECTION 11ZA
11ZA
AGREEMENT WITH POLAND
The provisions of the Polish agreement do not have the effect of subjecting to Australian tax any interest or royalties paid by a resident of Australia to a resident of Poland that, apart from that agreement, would not be subject to Australian tax.
History
S 11ZA amended by No 45 of 2011, s 3 and Sch 1 items 44 and 45, by repealing s 11ZA(1) and omitting "(2)" from s 11ZA(2), effective 27 June 2011. For transitional provisions see note under s 3(1). S 11ZA formerly read:
SECTION 11ZA AGREEMENT WITH THE REPUBLIC OF POLAND
11ZA(1)
Subject to this Act, on and after the date of entry into force of the Polish agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have the force of law according to their tenor.
11ZA(2)
The provisions of the Polish agreement do not have the effect of subjecting to Australian tax any interest or royalties paid by a resident of Australia to a resident of Poland that, apart from that agreement, would not be subject to Australian tax.
S 11ZA inserted by No 214 of 1991.
11ZB
(Repealed) SECTION 11ZB AGREEMENT WITH THE REPUBLIC OF INDONESIA
(Repealed by No 45 of 2011)
History
S 11ZB repealed by No 45 of 2011, s 3 and Sch 1 item 46, effective 27 June 2011. For transitional provisions see note under s 3(1). S 11ZB formerly read:
SECTION 11ZB AGREEMENT WITH THE REPUBLIC OF INDONESIA
11ZB
Subject to this Act, on and after the date of entry into force of the Indonesian agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have the force of law according to their tenor.
S 11ZB inserted by No 139 of 1992.
11ZC
(Repealed) SECTION 11ZC AGREEMENT WITH THE SOCIALIST REPUBLIC OF VIETNAM
(Repealed by No 45 of 2011)
History
S 11ZC repealed by No 45 of 2011, s 3 and Sch 1 item 46, effective 27 June 2011. For transitional provisions see note under s 3(1). S 11ZC formerly read:
SECTION 11ZC AGREEMENT WITH THE SOCIALIST REPUBLIC OF VIETNAM
11ZC
Subject to this Act, on and after the date of entry into force of the Vietnamese agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have the force of law according to their tenor.
S 11ZC inserted by No 139 of 1992.
SECTION 11ZCA
11ZCA
EXCHANGE OF NOTES BETWEEN AUSTRALIA AND VIETNAM
The Commissioner may amend an assessment made before the date of entry into force of the Vietnamese notes (No. 1) for the purpose of giving effect to those notes.
History
S 11ZCA amended by No 45 of 2011, s 3 and Sch 1 items 47 to 49, by repealing s 11ZCA(1), omitting "(2)" from s 11ZCA(2) and substituting "Vietnamese notes (No. 1) for the purpose of giving effect to those notes" for "Vietnamese notes for the purpose of giving effect to subsection (1)" in s 11ZCA(2), effective 27 June 2011. For transitional provisions see note under s 3(1). S 11ZCA formerly read:
SECTION 11ZCA EXCHANGE OF NOTES BETWEEN AUSTRALIA AND THE SOCIALIST REPUBLIC OF VIETNAM
11ZCA(1)
Subject to this Act, on or after the date of entry into force of the Vietnamese notes, the provisions of the notes, so far as those provisions affect Australian tax, have the force of law according to their tenor.
11ZCA(2)
The Commissioner may amend an assessment made before the date of entry into force of the Vietnamese notes for the purpose of giving effect to subsection (1).
S 11ZCA inserted by No 80 of 1997.
11ZD
(Repealed) SECTION 11ZD AGREEMENT WITH THE KINGDOM OF SPAIN
(Repealed by No 45 of 2011)
History
S 11ZD repealed by No 45 of 2011, s 3 and Sch 1 item 50, effective 27 June 2011. For transitional provisions see note under s 3(1). S 11ZD formerly read:
SECTION 11ZD AGREEMENT WITH THE KINGDOM OF SPAIN
11ZD
Subject to this Act, on and after the date of entry into force of the Spanish agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have the force of law according to their tenor.
S 11ZD inserted by No 139 of 1992.
11ZE
(Repealed) SECTION 11ZE AGREEMENT WITH THE CZECH REPUBLIC
(Repealed by No 45 of 2011)
History
S 11ZE repealed by No 45 of 2011, s 3 and Sch 1 item 50, effective 27 June 2011. For transitional provisions see note under s 3(1). S 11ZE formerly read:
SECTION 11ZE AGREEMENT WITH THE CZECH REPUBLIC
11ZE
Subject to this Act, on and after the date of entry into force of the Czech agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have the force of law according to their tenor.
S 11ZE inserted by No 127 of 1995.
SECTION 11ZF
AGREEMENT WITH TAIPEI ECONOMIC AND CULTURAL OFFICE
11ZF(1)
(Repealed by No 45 of 2011)
History
S 11ZF(1) repealed by No 45 of 2011, s 3 and Sch 1 item 51, effective 27 June 2011. For transitional provisions see note under s 3(1). S 11ZF(1) formerly read:
11ZF(1)
Subject to this Act, on and after the date of entry into effect of the Taipei agreement, the provisions of the agreement, so far as they affect Australian tax, have, and are taken to have had, the force of law according to their tenor.
11ZF(2)
For the purposes of the Assessment Act, if:
(a)
a person derives income, profits or gains; and
(b)
for the purposes of the
Taipei agreement, the person is a resident of the foreign territory; and
(c)
under any of Articles 6 to 8, 10 to 17 and 19 to 21 of the agreement, the income, profits or gains may be taxed in the Australian territory;
the income, profits or gains are taken to be derived from sources in the Australian territory.
11ZF(3)
[Income deemed derived from the foreign territory]
For the purposes of the Assessment Act and Article 22 of the Taipei agreement, if:
(a)
a person derives income, profits or gains; and
(b)
for the purposes of the agreement, the person is a resident of the Australian territory; and
(c)
under any of Articles 6 to 8, 10 to 17 and 19 to 21 of the agreement, the income, profits or gains may be taxed in the foreign territory;
the income, profits or gains are taken to have been derived from sources in the foreign territory.
11ZF(4)
The provisions of the
Taipei agreement do not have the effect of subjecting to Australian tax any interest or royalties paid by a resident of the Australian territory to a resident of the foreign territory that, apart from the agreement, would not be subject to Australian tax.
11ZF(5)
Section
170 of the
Income Tax Assessment Act 1936 does not prevent the amendment of an assessment made before the commencement of this section for the purpose of giving effect to the
Taipei agreement.
History
S 11ZF(5) amended by No 45 of 2011, s 3 and Sch 1 item 52, by substituting "Income Tax Assessment Act 1936" for "Assessment Act", effective 27 June 2011. For transitional provisions see note under s 3(1).
11ZF(6)
If:
(a)
an exchange of letters takes place for the purposes of paragraph 2 of the Annex mentioned in paragraph (b) of the definition of
Taipei agreement
in subsection
3AAA(1); and
(b)
as a result of the exchange, income, profits or gains derived by an organisation before the exchange become taxable under paragraph 2 of the Annex solely in the Australian territory or solely in the foreign territory; and
(c)
before the exchange and whether before or after the commencement of this section, an assessment was made in which the income, profits or gains were not taxed in that way;
section 170 of the Income Tax Assessment Act 1936 does not prevent the amendment of the assessment for the purpose of taxing the income, profits or gains in that way.
History
S 11ZF(6) amended by No 45 of 2011, s 3 and Sch 1 items 53 and 54, by substituting "subsection 3AAA(1)" for "subsection 3(1)" in para (a) and substituting "Income Tax Assessment Act 1936" for "Assessment Act", effective 27 June 2011. For transitional provisions see note under s 3(1).
11ZF(7)
In this section:
Australian territory
means the territory mentioned in subparagraph 1(a) of Article 2 of the Taipei agreement.
foreign territory
means the territory mentioned in subparagraph 1(b) of Article 2 of the Taipei agreement.
History
S 11ZF inserted by No 39 of 1996.
11ZG
(Repealed) SECTION 11ZG AGREEMENT WITH THE REPUBLIC OF SOUTH AFRICA
(Repealed by No 45 of 2011)
History
S 11ZG repealed by No 45 of 2011, s 3 and Sch 1 item 55, effective 27 June 2011. For transitional provisions see note under s 3(1). S 11ZG formerly read:
SECTION 11ZG AGREEMENT WITH THE REPUBLIC OF SOUTH AFRICA
11ZG
Subject to this Act, on and after the date of entry into force of the South African agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have the force of law according to their tenor.
S 11ZG inserted by No 149 of 1999.
11ZGA
(Repealed) SECTION 11ZGA PROTOCOL WITH THE REPUBLIC OF SOUTH AFRICA
(Repealed by No 45 of 2011)
History
S 11ZGA repealed by No 45 of 2011, s 3 and Sch 1 item 55, effective 27 June 2011. For transitional provisions see note under s 3(1). S 11ZGA formerly read:
SECTION 11ZGA PROTOCOL WITH THE REPUBLIC OF SOUTH AFRICA
11ZGA
Subject to this Act, on and after the date of entry into force of the South African protocol, the provisions of the protocol have the force of law according to their tenor.
S 11ZGA inserted by No 111 of 2008, s 3 and Sch 1 item 3, effective 31 October 2008.
11ZH
(Repealed) SECTION 11ZH AGREEMENT WITH THE SLOVAK REPUBLIC
(Repealed by No 45 of 2011)
History
S 11ZH repealed by No 45 of 2011, s 3 and Sch 1 item 55, effective 27 June 2011. For transitional provisions see note under s 3(1). S 11ZH formerly read:
SECTION 11ZH AGREEMENT WITH THE SLOVAK REPUBLIC
11ZH
Subject to this Act, on and after the date of entry into force of the Slovak agreement, the provisions of the agreement so far as those provisions affect Australian tax, have the force of law according to their tenor.
S 11ZH inserted by No 149 of 1999.
SECTION 11ZI
11ZI
ARGENTINE AGREEMENT
Nothing in section
170 of the
Income Tax Assessment Act 1936 prevents the amendment of an assessment made before the commencement of this section for the purpose of giving effect to the Argentine agreement.
History
S 11ZI amended by No 45 of 2011, s 3 and Sch 1 items 56 and 57, by repealing s 11ZI(1) and omitting "(2)" from s 11ZI(2), effective 27 June 2011. For transitional provisions see note under s 3(1). S 11ZI formerly read:
SECTION 11ZI ARGENTINE AGREEMENT
11ZI(1)
Subject to this Act, on and after the date of entry into force of the Argentine agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have, and are taken to have had, the force of law according to their tenor.
11ZI(2)
Nothing in section 170 of the Income Tax Assessment Act 1936 prevents the amendment of an assessment made before the commencement of this section for the purpose of giving effect to the Argentine agreement.
S 11ZI inserted by No 149 of 1999.
11ZJ
(Repealed) SECTION 11ZJ AGREEMENT WITH ROMANIA
(Repealed by No 45 of 2011)
History
S 11ZJ repealed by No 45 of 2011, s 3 and Sch 1 item 58, effective 27 June 2011. For transitional provisions see note under s 3(1). S 11ZJ formerly read:
SECTION 11ZJ AGREEMENT WITH ROMANIA
11ZJ
Subject to this Act, on and after the date of entry into force of the Romanian agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have the force of law according to their tenor.
S 11ZJ inserted by No 100 of 2000.
11ZK
(Repealed) SECTION 11ZK AGREEMENT WITH RUSSIA
(Repealed by No 45 of 2011)
History
S 11ZK repealed by No 45 of 2011, s 3 and Sch 1 item 58, effective 27 June 2011. For transitional provisions see note under s 3(1). S 11ZK formerly read:
SECTION 11ZK AGREEMENT WITH RUSSIA
11ZK
Subject to this Act, on or after the date of entry into force of the Russian agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have the force of law according to their tenor.
S 11ZK inserted by No 59 of 2002.
11ZL
(Repealed) SECTION 11ZL AGREEMENT WITH MEXICO
(Repealed by No 45 of 2011)
History
S 11ZL repealed by No 45 of 2011, s 3 and Sch 1 item 58, effective 27 June 2011. For transitional provisions see note under s 3(1). S 11ZL formerly read:
SECTION 11ZL AGREEMENT WITH MEXICO
11ZL
Subject to this Act, on and after the date of entry into force of the Mexican agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have the force of law according to their tenor.
S 11ZL inserted by No 123 of 2003.
11ZM
(Repealed) SECTION 11ZM AGREEMENT WITH THE BRITISH VIRGIN ISLANDS
(Repealed by No 45 of 2011)
History
S 11ZM repealed by No 45 of 2011, s 3 and Sch 1 item 58, effective 27 June 2011. For transitional provisions see note under s 3(1). S 11ZM formerly read:
SECTION 11ZM AGREEMENT WITH THE BRITISH VIRGIN ISLANDS
11ZM
Subject to this Act, on and after the date of entry into force of a provision of the British Virgin Islands agreement, the provision has the force of law according to its tenor.
S 11ZM inserted by No 105 of 2009, s 3 and Sch 1 item 3, effective 8 October 2009.
11ZN
(Repealed) SECTION 11ZN AGREEMENT WITH THE ISLE OF MAN
(Repealed by No 45 of 2011)
History
S 11ZN repealed by No 45 of 2011, s 3 and Sch 1 item 58, effective 27 June 2011. For transitional provisions see note under s 3(1). S 11ZN formerly read:
SECTION 11ZN AGREEMENT WITH THE ISLE OF MAN
11ZN
Subject to this Act, on and after the date of entry into force of a provision of the Isle of Man agreement, the provision has the force of law according to its tenor.
S 11ZN inserted by No 105 of 2009, s 3 and Sch 1 item 3, effective 8 October 2009.
11ZO
(Repealed) SECTION 11ZO AGREEMENT WITH JERSEY
(Repealed by No 45 of 2011)
History
S 11ZO repealed by No 45 of 2011, s 3 and Sch 1 item 58, effective 27 June 2011. For transitional provisions see note under s 3(1). S 11ZO formerly read:
SECTION 11ZO AGREEMENT WITH JERSEY
11ZO
Subject to this Act, on and after the date of entry into force of a provision of the Jersey agreement, the provision has the force of law according to its tenor.
S 11ZO inserted by No 13 of 2010, s 3 and Sch 1 item 17, effective 11 March 2010.
12
(Repealed) SECTION 12 PROVISIONS RELATING TO CERTAIN INCOME DERIVED FROM SOURCES IN CERTAIN COUNTRIES
(Repealed by No 51 of 1986)
History
Former s 12 amended by No 168 of 1985, No 125 of 1984, No 57 of 1983, No 143 and No 28 of 1981, No 127 and No 23 of 1980, No 134 of 1977, No 52 of 1976, No 129 of 1974 and No 11 of 1973.
13
(Repealed) SECTION 13 DEDUCTIONS FOR UNITED KINGDOM TAX NOT TO BE TAKEN INTO ACCOUNT IN CALCULATING AMOUNT OF DIVIDEND, INTEREST OR ROYALTY
(Repealed by No 51 of 1986)
History
Former s 13 amended by No 23 of 1980 and No 129 of 1974.
14
(Repealed) SECTION 14 PROVISIONS RELATING TO CREDITS FOR FOREIGN TAX
(Repealed by No 51 of 1986)
15
(Repealed) SECTION 15 ASCERTAINMENT OF AUSTRALIAN TAX
(Repealed by No 51 of 1986)
History
Former s 15 amended by No 173 of 1985, No 51 of 1983, No 154 of 1981, No 87 of 1978, No 55 of 1976, No 119 of 1975, No 129 of 1974 and No 48 of 1972.
SECTION 16
REBATES OF EXCESS TAX ON INCOME INCLUDED IN ASSESSABLE INCOME
16(1)
[Application of section]
This section applies in relation to each relevant part of a taxpayer's income of the year of income that consists of income in respect of which a provision of an agreement limits the amount of Australian tax payable.
16(2)
[Calculation of rebate]
Thetaxpayer is entitled, in respect of each relevant part of the taxpayer's income of the year of income to which this section applies, to a rebate of the amount (if any) by which the amount ascertained in accordance with the last preceding section as the amount of Australian tax payable in respect of that part exceeds the limit applicable under the provisions of the agreement in relation to that part.
History
S 16(2) amended by No 73 of 2008, s 3 and Sch 4 item 360, by substituting "the taxpayer's" for "his", effective 4 July 2008.
16(3)
[Rebate allowed in the assessment]
The rebate to which a taxpayer is entitled under this section in respect of a relevant part of the taxpayer's income shall be allowed in the taxpayer's assessment in respect of income of the year of income in the assessable income of which that part is included.
History
S 16(3) amended by No 73 of 2008, s 3 and Sch 4 item 361, by substituting "the taxpayer's" for "his" (wherever occurring), effective 4 July 2008.
16(4)
[Rebate must not exceed tax payable]
A rebate, or the sum of the rebates, a taxpayer is entitled to under subsection (2), in respect of income of a year of income, must not exceed the amount of Australian tax payable in respect of the taxpayer's taxable income of that year after all other rebates of, and deductions from, that tax have been taken into account.
History
S 16(4) substituted for s 16(4) and (5) by No 88 of 2009, s 3 and Sch 5 item 342, effective 18 September 2009. S 16(4) formerly read:
16(4)
Where the taxpayer is liable to pay additional tax under section 104 of the Assessment Act in relation to the year of income referred to in subsection (3), so much of the rebate as is not allowed in the assessment referred to in that subsection shall be allowed in the assessment of the additional tax.
S 16(4) amended by No 129 of 1974.
16(5)
(Repealed by No 88 of 2009)
History
S 16(4) substitutedfor s 16(4) and (5) by No 88 of 2009, s 3 and Sch 5 item 342, effective 18 September 2009. S 16(5) formerly read:
16(5)
A rebate, or the sum of the rebates, to which, under subsection (2), a taxpayer is entitled in respect of income of a year of income shall not exceed the sum of:
(a)
the amount of Australian tax payable in respect of the taxpayer's taxable income of that year of income after all other rebates of, and deductions from, that tax have been taken into account; and
(b)
the amount, if any, of additional tax payable by the taxpayer under section 104 of the Assessment Act in relation to that year of income.
S 16(5) amended by No 73 of 2008, s 3 and Sch 4 items 362 and 363, by substituting "the taxpayer's" for "his" in para (a) and substituting "the taxpayer" for "him" in para (b), effective 4 July 2008.
S 16(5) amended by No 129 of 1974.
17
(Repealed) SECTION 17 REBATES OF EXCESS TAX ON DIVIDENDS
(Repealed by No 3 of 1968)
SECTION 17A
WITHHOLDING TAX
17A(1)
Where a provision of an agreement limits the amount of Australian tax payable in respect of a dividend or a royalty, being a dividend or a royalty in respect of which withholding tax is payable, and the amount of that withholding tax exceeds the limit specified in the agreement, the liability of the taxpayer for the withholding tax shall be reduced by an amount equal to the amount of the excess.
History
S 17A(1) amended by No 224 of 1992.
17A(2)
Where the liability of a taxpayer for withholding tax payable in respect of a unit trust dividend would have been reduced in pursuance of subsection (1) if that unit trust dividend had been a dividend paid to the taxpayer by a company that is a resident, that liability shall be reduced by an amount equal to the amount by which the liability would have been reduced if the unit trust dividend had been a dividend paid to the taxpayer by a company that is a resident.
History
S 17A(2) inserted by No 154 of 1981.
17A(3)
In subsection (2):
unit trust dividend
means a unit trust dividend within the meaning of Division 6C of Part III of the Income Tax Assessment Act 1936.
History
Definition of "unit trust dividend" amended by No 53 of 2016, s 3 and Sch 5 item 72, by omitting "6B or" before "6C", applicable to assessments for income years starting on or after 1 July 2016. For transitional provision, see note under definition of "prescribed trust estate" in s 3(1).
Definition of "unit trust dividend" amended by No 45 of 2011, s 3 and Sch 1 item 59, by substituting "Income Tax Assessment Act 1936" for "Assessment Act", effective 27 June 2011. For transitional provisions see note under s 3(1).
History
S 17A(3) substituted by No 173 of 1985 and inserted by No 154 of 1981.
17A(4)
If:
(a)
a provision (
basic royalty provision
) of an agreement is covered by either of the following subparagraphs:
(i)
paragraph 1 or 2 of Article 12 of the Chinese agreement;
(ii)
a corresponding provision of another agreement; and
(b)
another provision of the agreement expressly excludes particular royalties (
excluded royalties
) from the scope of the basic royalty provision;
section 128B of the Income Tax Assessment Act 1936 (which deals with liability for withholding tax) does not apply to the excluded royalties.
History
S 17A(4) amended by No 45 of 2011, s 3 and Sch 1 item 60, by substituting "Income Tax Assessment Act 1936" for "Assessment Act", effective 27 June 2011. For transitional provisions see note under s 3(1).
S 17A(4) inserted by No 224 of 1992.
17A(5)
Section
128B of the
Income Tax Assessment Act 1936 (which deals with liability for withholding tax) does not apply to the payment of a royalty as defined in subsection
6(1) of that Act if:
(a)
the royalty is paid to a person who is a resident of a Contracting State or territory (other than Australia) for the purposes of an agreement; and
(b)
the agreement does not treat the amount paid as a royalty.
History
S 17A(5) amended by No 45 of 2011, s 3 and Sch 1 item 60, by substituting "Income Tax Assessment Act 1936" for "Assessment Act", effective 27 June 2011. For transitional provisions see note under s 3(1).
S 17A(5) inserted by No 59 of 2002.
17B
(Repealed) SECTION 17B INTEREST PAID BY A COMPANY TO A PERSON RESIDENT IN THE UNITED KINGDOM
(Repealed by No 123 of 2003)
SECTION 18
SOURCE OF DIVIDENDS
18(1)
Where a company is not a resident of Australia but, for the purposes of a law of a country with which, or with the government of which, an agreement has been made (being a law which imposes foreign tax), is resident in that other country, a dividend paid by the company shall, for the purposes of the agreement, be deemed to be derived from a source in that country.
History
S 18(1) amended by No 125 of 1984.
18(2)
Subsection (1) does not limit the operation of a provision of an agreement by virtue of which a dividend is deemed to be derived from a source outside Australia.
19
(Repealed) SECTION 19 CERTAIN DIVIDENDS PAID TO UNITED KINGDOM RESIDENTS
(Repealed by No 3 of 1968)
19A
(Repealed) SECTION 19A CERTAIN FOREIGN CONTRACTORS DEEMED NOT TO BE TRADING THROUGH PERMANENT ESTABLISHMENTS IN AUSTRALIA
(Repealed by No 57 of 1983)
SECTION 20
COLLECTION OF TAX DUE TO THE UNITED STATES OF AMERICA
20(1)
The purpose of this section is to enable the Government of Australia to give effect to its obligation under paragraph (5) of Article
25 of the United States convention (as amended) and accordingly the amounts of United States tax to which this section applies are amounts of United States tax the collection of which is necessary in order to ensure that the benefit of exemptions from United States tax, or of reductions in rates of United States tax, provided for by the convention is not received by a person not entitled to that benefit.
History
S 20(1) amended by No 45 of 2011, s 3 and Sch 1 item 61, by substituting "United States convention (as amended)" for "United States convention", effective 27 June 2011. For transitional provisions see note under s 3(1).
S 20(1) amended by No 57 of 1983 and No 52 of 1976.
20(2)
Where a person is liable to pay an amount of United States tax to which this section applies, there is payable by that person to the Commissioner as a debt due to the Queen on behalf of Australia an amount equivalent to that amount, and the amount so payable may be sued for and recovered in any court of competent jurisdiction by the Commissioner, a Second Commissioner or a Deputy Commissioner suing in his or her official name.
History
S 20(2) amended by No 73 of 2008, s 3 and Sch 4 item 364, by inserting "or her" after "his", effective 4 July 2008.
S 20(2) amended by No 52 of 1976.
20(3)
An amount payable to the Commissioner under the last preceding subsection may be collected by the Commissioner under section
218 of the Assessment Act and, for that purpose, a reference in that section to a taxpayer shall be read as a reference to the person by whom that amount is payable and a reference to an amount due by a taxpayer in respect of tax shall be read as a reference to the amount so payable.
History
S 20(3) amended by No 129 of 1974.
20(4)
The Commissioner, a Second Commissioner or a Deputy Commissioner may, by writing under his or her hand, certify-
(a)
that, on a date specified in the certificate, a person specified in the certificate was liable to pay an amount of United States tax;
(b)
that that amount was an amount of United States tax to which this section applies; and
(c)
that an amount specified in the certificate is an amount equivalent to the amount of United States tax;
and such a certificate is, in all courts and for all purposes, prima facie evidence of the matters stated in the certificate and that the person specified in the certificate has, during the period from the date specified in the certificate until the date of the certificate, continued to be liable to pay the amount of United States tax.
History
S 20(4) amended by No 61 of 2016, s 3 and Sch 3 item 28, by substituting "prima facie evidence" for "evidence", effective 21 October 2016.
S 20(4) amended by No 73 of 2008, s 3 and Sch 4 item 365, by inserting "or her" after "his", effective 4 July 2008.
20(5)
The Commissioner shall pay to the Government of the United States of America an amount equal to any amount paid or recovered by virtue of this section.
History
S 20(5) substituted by No 123 of 1984.
20(6)
In this section:
United States convention (as amended)
means the United States convention as amended by the United States protocol (No. 1).
History
Definition of "United States convention (as amended)" inserted by No 45 of 2011, s 3 and Sch 1 item 62, effective 27 June 2011. For transitional provisions see note under s 3(1).
United States tax
has the same meaning as in the United States convention (as amended).
History
Definition of "United States tax" amended by No 45 of 2011, s 3 and Sch 1 item 63, by substituting "United States convention (as amended)" for "United States convention", effective 27 June 2011. For transitional provisions see note under s 3(1).
SECTION 21
21
REGULATIONS
The power to make regulations conferred by section
266 of the
Income Tax Assessment Act 1936 shall be deemed to extend to the making of regulations, not inconsistent with this Act, prescribing all matters which by this Act are required or permitted to be prescribed, or which are necessary or convenient to be prescribed for carrying out or giving effect to this Act.
History
S 21 amended by No 45 of 2011, s 3 and Sch 1 item 64, by substituting "Income Tax Assessment Act 1936" for "Assessment Act", effective 27 June 2011. For transitional provisions see note under s 3(1).
S 21 amended by No 129 of 1974.
SECTION 22
22
APPLICATION OF THIS ACT
Nothing in this Act affects assessments in respect of income, or the ascertainment of credits against tax on income, of a year of income before the year of income that commenced on 1 July 1953.
History
S 22 amended by No 52 of 1976.
SECTION 23
GATHERING AND EXCHANGING INFORMATION
23(1)
The Commissioner or an officer authorised by the Commissioner may use the information gathering provisions for the purpose of gathering information to be exchanged in accordance with the Commissioner's obligations under an international agreement.
23(2)
(Repealed by No 145 of 2010)
History
S 23(2) repealed by No 145 of 2010, s 3 and Sch 2 item 57, effective 17 December 2010. S 23(2) formerly read:
23(2)
Making a record of, and exchanging, information in accordance with the Commissioner's obligations under an international agreement is not a breach of a provision of a taxation law that prohibits the Commissioner or an officer from making a record of, or disclosing, information.
Example:
An example of such a provision is section 3C of the Taxation Administration Act 1953.
23(3)
Subsection (1) has effect whether or not the information relates to Australian tax.
History
S 23(3) amended by No 145 of 2010, s 3 and Sch 2 item 58, by substituting "Subsection (1) has" for "Subsections (1) and (2) have", effective 17 December 2010.
23(4)
In this section:
information gathering provision
means a provision of a taxation law that allows the Commissioner:
(a)
to access land, premises, documents, information, goods or other property; or
(b)
to require or direct a person to provide information; or
(c)
to require or direct a person to appear before the Commissioner or an officer and give evidence or produce documents.
international agreement
means:
(a)
an agreement given the force of law under this Act; or
(b)
some other agreement that allows for the exchange of information on tax matters between Australia and:
(i)
a foreign country or a constituent part of a foreign country; or
(ii)
an overseas territory.
taxation law
has the same meaning as in the Income Tax Assessment Act 1997.
History
S 23 inserted by No 100 of 2006, s 3 and Sch 2 item 1, applicable to requests for the exchange of information made after 14 September 2006.
SECTION 24
RELIEF FROM DOUBLE TAXATION WHERE PROFITS ADJUSTED
Application
24(1)
This section applies if:
(a)
Australia has an agreement with one of the following (a
treaty partner
):
(i)
a foreign country or a constituent part of a foreign country;
(ii)
an overseas territory; and
(b)
the treaty partner taxes profits, or purports to tax profits, in accordance with, or consistent with the principles of:
(i)
if the treaty partner is the United Kingdom - Article 9 of the United Kingdom convention; or
(ii)
otherwise - a corresponding provision of another agreement.
Note:
Article 9 of the United Kingdom convention deals with profits of associated enterprises.
History
S 24(1) amended by No 64 of 2016, s 3 and Sch 1 item 9, by substituting the note, effective 20 October 2016. The note formerly read:
Note:
Article 9 of the United Kingdom Convention deals with associated enterprises.
S 24(1) amended by No 45 of 2011, s 3 and Sch 1 items 65 and 66, by omitting "2003" from para (b)(i) and from the note at the end, effective 27 June 2011. For transitional provisions see note under s 3(1).
Object
24(2)
The object of this section is to prevent double taxation of the profits, to the extent that the Commissioner considers the taxation of the profits by the treaty partner to be in accordance with the agreement.
Adjustment of taxable income or tax loss
24(3)
The Commissioner may determine the amount of a taxpayer's taxable income or tax loss of a year of income to be an amount that is appropriate having regard to the object of this section.
Note:
The Commissioner may amend an assessment at any time to give effect to this section: see subsection 170(11) of the Income Tax Assessment Act 1936.
History
S 24 inserted by No 143 of 2007, s 3 and Sch 1 item 211, applicable in relation to income years, statutory accounting periods and notional accounting periods starting on or after the first 1 July that occurs after 24 September 2007. No 143 of 2007, s 3 and Sch 1 item 224 also contains the following application rule, effective 24 September 2007:
224 Application rule for credits arising under the
International Tax Agreements Act 1953
224(1)
Despite the repeal of Division 19 of Part III of the Income Tax Assessment Act 1936, that Division continues to apply, after the commencement of this item, in relation to:
(a)
a determination made by a person under the Division before the commencement of this item; or
(b)
a credit to which the Division applied before the commencement of this item;
as if the repeal had not happened.
224(2)
The Commissioner may make determinations under that Division as it so continues to apply.
224(3)
Section 24 of the International Tax Agreements Act 1953, as inserted, applies from the commencement of this item in relation to any income year.
Taipei Agreement
AGREEMENT BETWEEN THE AUSTRALIAN COMMERCE AND INDUSTRY OFFICE AND THE TAIPEI ECONOMIC AND CULTURAL OFFICE CONCERNING THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME
History
Sch 1 renumbered from Sch 41 by No 45 of 2011, s 3 and Sch 1 item 68, effective 27 June 2011. For transitional provisions see note under s 3(1).
Sch 1 (formerly Sch 41) inserted by No 39 of 1996.
ARTICLE 1
Personal scope
This Agreement shall apply to persons who are residents of one or both of the territories.
ARTICLE 2
Taxes covered
1.
The existing taxes to which this Agreement shall apply are:
(a)
in the territory in which the taxation law administered by the Australian Taxation Office is applied:
the income tax, and the resource rent tax in respect of offshore projects relating to exploration for or exploitation of petroleum resources, imposed under that law;
(b)
in the territory in which the taxation law administered by the Department of Taxation, Ministry of Finance, Taipei is applied:
the profit seeking enterprise income tax and the individual consolidated income tax, imposed under that law.
2.
This Agreement shall apply also to any identical or substantially similar taxes on income, profits or gains which are imposed after the date of signature of this Agreement in addition to, or in place of, the existing taxes. The competent authorities will notify each other as soon as practicable of any substantial changes which have been made in the taxation laws of their respective territories.
ARTICLE 3
General definitions
1.
In this Agreement, unless the context otherwise requires:
(a)
the term "territory" means the territory referred to in subparagraph 1(a) or 1(b) of Article 2, as the case requires;
(b)
the term "person" includes an individual, a company and any other body of persons;
(c)
the term "company" means any body corporate or any entity which is treated as a company or body corporate for tax purposes;
(d)
the terms "enterprise of a territory" and "enterprise of the other territory" mean respectively an enterprise carried on by a resident of a territory or an enterprise carried on by a resident of the other territory, as the context requires;
(e)
the term "tax" means tax imposed under the law of a territory, being a tax to which this Agreement applies by virtue of Article 2, but does not include any penalty or interest imposed under that law;
(f)
the term "competent authority" means, in the case of the territory in which the taxation law administered by the Australian Taxation Office is applied, the Commissioner of Taxation or an authorised representative of the Commissioner and, in the case of the territory in which the taxation law administered by the Department of Taxation, Ministry of Finance, Taipei is applied, the Director-General of the Department of Taxation or an authorised representative of the Director-General.
2.
As regards the application of this Agreement at any time in a territory, any term not defined in this Agreement shall, unless the context otherwise requires, have the meaning which it has at that time under the law of that territory concerning the taxes to which this Agreement applies, any meaning under the applicable tax law of that territory prevailing over a meaning given to the term under other laws of that territory.
ARTICLE 4
Residence
1.
For the purposes of this Agreement, a person is a resident of a territory if the person is a resident of that territory for the purposes of its tax.
2.
A person is not a resident of the territory in which the taxation law administered by the Australian Taxation Office is applied for the purposes of this Agreement if the person is liable to tax in that territory in respect only of income from sources in that territory.
3.
Where by reason of the preceding provisions of this Article a person, being an individual, is a resident of both territories, then the status of the person shall be determined in accordance with the following rules:
(a)
the person shall be deemed to be a resident solely of the territory in which a permanent home is available to the person;
(b)
if a permanent home is available to the person in both territories, or in neither of them, the person shall be deemed to be a resident solely of the territory in which the person has an habitual abode;
(c)
if the person has an habitual abode in both territories or in neither of them, the person shall be deemed to be a resident solely of the territory with which the person's economic and personal relations are closer.
4.
Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both territories, then it shall be deemed to be a resident solely of the territory in which its place of incorporation is situated.
ARTICLE 5
Permanent establishment
1.
For the purposes of this Agreement, the term "permanent establishment", in relation to an enterprise, means a fixed place of business through which the business of the enterprise is wholly or partly carried on.
2.
The term "permanent establishment" includes especially:
(a)
a place of management;
(b)
a branch;
(c)
an office;
(d)
a factory;
(e)
a workshop;
(f)
a mine, an oil or gas well, a quarry or any other place of extraction of natural resources;
(g)
an agricultural, pastoral or forestry property;
(h)
a building site or construction, installation or assembly project which exists for more than 6 months; and
(i)
the furnishing of services, including consultancy services in a territory by an enterprise of the other territory through employees or other personnel engaged by the enterprise for such purpose, but only where those activities (for the same or a connected project) within the first-mentioned territory continue for a period or periods aggregating more than 120 days within any twelve month period.
3.
An enterprise shall not be deemed to have a permanent establishment merely by reason of:
(a)
the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise; or
(b)
the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery; or
(c)
the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise; or
(d)
the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise, or of collecting information, for the enterprise; or
(e)
the maintenance of a fixed place of business solely for the purpose of activities which have a preparatory or auxiliary character for the enterprise, such as advertising or scientific research.
4.
An enterprise shall be deemed to have a permanent establishment in a territory and to carry on business through that permanent establishment if:
(a)
it carries on supervisory activities in that territory for more than 6 months in connection with a building site, or a construction, installation or assembly project, which is being undertaken in that territory; or
(b)
substantial equipment is being used in that territory by, for or under contract with, the enterprise where that use continues for more than 3 months.
5.
A person acting in a territory on behalf of an enterprise of the other territory - other than an agent of an independent status to whom paragraph 6 applies - shall be deemed to be a permanent establishment of that enterprise in the first-mentioned territory if:
(a)
the person has, and habitually exercises in that territory, an authority to conclude contracts on behalf of the enterprise, unless the person's activities are limited to the purchase of goods or merchandise for the enterprise; or
(b)
in so acting, the person manufactures or processes in that territory for the enterprise goods or merchandise belonging to the enterprise.
6.
An enterprise of a territory shall not be deemed to have a permanent establishment in the other territory merely because it carries on business in that other territory through a person who is a broker, general commission agent or any other agent of an independent status and is acting in the ordinary course of the person's business as such a broker or agent.
7.
The fact that a company which is a resident of a territory controls or is controlled by a company which is a resident of the other territory, or which carries on business in that other territory (whether through a permanent establishment or otherwise), shall not of itself make either company a permanent establishment of the other.
8.
The principles set forth in the preceding paragraphs of this Article shall be applied in determining for the purposes of paragraph 5 of Article 11 and paragraph 5 of Article 12 whether an enterprise, not being an enterprise of either territory, has a permanent establishment in a territory.
ARTICLE 6
Income from Real property
1.
Income from real property may be taxed in the territory in which the real property is situated.
2.
In this Article, the term "real property":
(a)
in the case of the territory in which the taxation law administered by the Australian Taxation Office is applied, has the meaning it has under the law of that territory, and includes:
(i)
a lease of land and any other interest in or over land, whether improved or not; and
(ii)
a right to receive variable or fixed payments as consideration for the exploitation of or the right to explore for or exploit, or in respect of the proceeds from the exploitation of, mineral deposits, oil or gas wells, quarries or other places of extraction or exploitation of natural resources; and
(b)
in the case of the territory in which the taxation law administered by the Department of Taxation, Ministry of Finance, Taipei is applied, has the meaning it has under the law of that territory, and includes:
(i)
property accessory to immovable property, livestock and equipment used in agriculture and forestry;
(ii)
rights to which the provisions of the general law respecting landed property apply; and
(iii)
usufruct of immovable property and rights to variable or fixed payments as consideration for the exploitation of or the right to explore for or exploit, or in respect of the exploitation of, mineral deposits, sources and other natural resources; but
(c)
shall not include ships, boats and aircraft.
3.
Any interest or right referred to in paragraph 2 shall be regarded as situated where the land, mineral, oil or gas deposits, quarries or natural resources, as the case may be, are situated or where the exploration may take place.
4.
The provisions of paragraph 1 shall apply to income derived from the direct use, letting, or use in any other form of real property.
5.
The provisions of paragraphs 1 and 4 shall also apply to income from real property of an enterprise and to income from real property used for the performance of independent personal services.
ARTICLE 7
Business profits
1.
The profits of an enterprise of a territory shall be taxable only in that territory unless the enterprise carries on business in the other territory through a permanent establishment situated in that other territory. If the enterprise carries on business in that manner, the profits of the enterprise may be taxed in the other territory but only so much of them as is attributable to that permanent establishment.
2.
Subject to the provisions of paragraph 3, where an enterprise of a territory carries on business in the other territory through a permanent establishment situated in that other territory, there shall be attributed to that permanent establishment in each territory the profits which that permanent establishment might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment or with other enterprises with which it deals.
3.
In determining the profits of a permanent establishment, there shall be allowed as deductions expenses which are incurred for the purposes of the permanent establishment (including executive and general administrative expenses so incurred) and which would be deductible if the permanent establishment were an independent entity which paid those expenses, whether incurred in the territory in which the permanent establishment is situated or elsewhere.
4.
No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise.
5.
Nothing in this Article shall affect the application of any law of a territory relating to the determination of the tax liability of a person, including determinations in cases where the information available to the competent authority of that territory is inadequate to determine the profits to be attributed to a permanent establishment, provided that that law shall be applied, so far as it is practicable to do so, consistently with the principles of this Article.
6.
Where profits include items of income or gains which are dealt with separately in other Articles of this Agreement, then the provisions of those Articles shall not be affected by the provisions of this Article.
7.
Nothing in this Article shall affect the operation of any law of a territory relating to tax imposed on profits from insurance with non-residents provided that if the relevant law in force in either territory at the date of signature of this Agreement is varied (otherwise than in minor respects so as not to affect its general character) the parties to this Agreement shall consult each other with a view to facilitating any amendment of this paragraph as may be appropriate.
8.
Where:
(a)
a resident of a territory is beneficially entitled, whether directly or through one or more interposed trust estates, to a share of the business profits of an enterprise carried on in the other territory by the trustee of a trust estate other than a trust estate which is treated as a company for tax purposes; and
(b)
in relation to that enterprise, that trustee would, in accordance with the principles of Article 5, have a permanent establishment in that other territory,
the enterprise carried on by the trustee shall be deemed to be a business carried on in the other territory by that resident through a permanent establishment situated in that other territory and that share of business profits shall be attributed to that permanent establishment.
ARTICLE 8
Ships and aircraft
1.
Profits derived by an enterprise of a territory from the operation of ships or aircraft shall be taxable only in that territory.
2.
Notwithstanding the provisions of paragraph 1, such profits shall be taxed in the other territory to the extent that they are profits derived directly or indirectly from ship or aircraft operations confined solely to places in that other territory.
3.
The profits to which the provisions of paragraphs 1 and 2 apply shall include profits from:
(a)
the lease of ships or aircraft on a full time, voyage or bareboat basis, and of containers and related equipment, which is merely incidental to the international operation of ships or aircraft by the lessor, provided that the leased ships or aircraft, or the containers and related equipment, are used in international operations by the lessee; and
(b)
the operation of ships or aircraft derived through participation in a pool, a joint business or an international operating agency.
4.
For the purposes of this Article, profits derived from the carriage by ships or aircraft of passengers, livestock, mail, goods or merchandise which are shipped in a territory and discharged at a place in that territory shall be treated as profits from ship or aircraft operations confined solely to places in that territory.
ARTICLE 9
Associated enterprises
1.
Where
(a)
an enterprise of a territory participates directly or indirectly in the management, control or capital of an enterprise of the other territory; or
(b)
the same persons participate directly or indirectly in the management, control or capital of an enterprise of a territory and an enterprise of the other territory,
and in either case conditions operate between the two enterprises in their commercial or financial relations which differ from those which might be expected to operate between independent enterprises dealing wholly independently with one another, then any profits which, but for those conditions, might have been expected to accrue to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly.
2.
Nothing in this Article shall affect the application of any law of a territory relating to the determination of the tax liability of a person, including determinations in cases where the information available to the competent authority of that territory is inadequate to determine the profits to be attributed to an enterprise, provided that that law shall be applied, so far as it is practicable to do so, consistently with the principles of this Article.
3.
Where profits on which an enterprise of a territory has been charged to tax in that territory are also included, by virtue of the provisions of paragraph 1 or 2, in the profits of an enterprise of the other territory and charged to tax in that other territory, and the profits so included are profits which might have been expected to have accrued to that enterprise of the other territory if the conditions operative between the enterprises had been those which might have been expected to have operated between independent enterprises dealing wholly independently with one another, then the first-mentioned territory shall make an appropriate adjustment to the amount of tax charged on those profits in the first-mentioned territory. In determining such an adjustment, due regard shall be had to the other provisions of this Agreement and for this purpose the competent authorities shall if necessary consult each other.
ARTICLE 10
Dividends
1.
Dividends paid by a company which is a resident of a territory for the purposes of its tax, being dividends to which a resident of the other territory is beneficially entitled, may be taxed in that other territory.
2.
However, those dividends may also be taxed in the territory of which the company paying the dividends is a resident for the purposes of its tax, and according to the law of that territory, but the tax so charged shall not exceed:
(a)
in the territory in which the taxation law administered by the Australian Taxation Office is applied:
(i)
10 per cent of the gross amount of the dividends, to the extent to which the dividends have been fully "franked" in accordance with the federal law of that territory relating to its income tax; and
(ii)
15 per cent of the gross amount of the dividends in all other cases; and
(b)
in the territory in which the taxation law administered by the Department of Taxation, Ministry of Finance, Taipei is applied:
(i)
10 per cent of the gross amount of the dividends, where the dividends are paid to a company (other than a partnership) which holds directly at least 25 per cent of the capital of the company paying the dividends; and
(ii)
15 per cent of the gross amount of the dividends in all other cases,
provided that if the relevant law in either territory at the date of signature of this Agreement is varied, otherwise than in minor respects so as to not affect its general character, the parties to this Agreement shall consult each other with a view to facilitating any amendment of this paragraph as may be appropriate.
3.
The term "dividends" in this Article means income from shares and other income assimilated to income from shares by the law, relating to tax, of the territory of which the company making the distribution is a resident for the purposes of its tax.
4.
The provisions of paragraphs 1 and 2 shall not apply if the person beneficially entitled to the dividends, being a resident of a territory, carries on business in the other territory of which the company paying the dividends is a resident, through a permanent establishment situated in that other territory, or performs in that other territory independent personal services from a fixed base situated in that other territory, and the holding in respect of which the dividends are paid is effectively connected with that permanent establishment or fixed base. In that case the provisions of Article 7 or Article 14, as the case may be, shall apply.
5.
Dividends paid by a company which is a resident of a territory, being dividends to which a person who is not a resident of the other territory is beneficially entitled, shall be exempt from tax in that other territory except insofar as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment or a fixed base situated in that other territory. This paragraph shall not apply in relation to dividends paid by any company which is a resident of the territory in which the taxation law administered by the Australian Taxation Office is applied for the purposes of tax imposed by that territory and which is also a resident of the territory in which the taxation law administered by the Department of Taxation, Ministry of Finance, Taipei is applied for the purposes of tax imposed by that territory.
ARTICLE 11
Interest
1.
Interest arising in a territory, being interest to which a resident of the other territory is beneficially entitled, may be taxed in that other territory.
2.
However, that interest may also be taxed in the territory in which it arises, and according to the law of that territory, but the tax so charged shall not exceed 10 per cent of the gross amount of the interest.
3.
The term "interest" in this Article includes interest from government securities or frombonds or debentures, whether or not secured by mortgage and whether or not carrying a right to participate in profits, interest from any other form of indebtedness and all other income assimilated to income from money lent by the law, relating to tax, of the territory in which the income arises.
4.
The provisions of paragraphs 1 and 2 shall not apply if the person beneficially entitled to the interest, being a resident of a territory, carries on business in the other territory, in which the interest arises, through a permanent establishment situated in that other territory, or performs in that other territory independent personal services from a fixed base situated in that other territory, and the indebtedness in respect of which the interest is paid is effectively connected with that permanent establishment or fixed base. In that case the provisions of Article 7 or Article 14, as the case may be, shall apply.
5.
Interest shall be deemed to arise in a territory when the payer is an authority of that territory or a subdivision or local authority of that territory or a person who is a resident of that territory for the purposes of its tax. Where, however, the person paying the interest, whether the person is a resident of a territory or not, has in a territory a permanent establishment or fixed base in connection with which the indebtedness on which the interest is paid was incurred, and that interest is borne by that permanent establishment or fixed base, then the interest shall be deemed to arise in the territory in which the permanent establishment or fixed base is situated.
6.
Where, by reason of a special relationship between the payer and the person beneficially entitled to the interest, or between both of them and some other person, the amount of the interest paid, having regard to the indebtedness for which it is paid, exceeds the amount which might have been expected to have been agreed upon by the payer and the person so entitled in the absence of that relationship, the provisions of this Article shall apply only to the last-mentioned amount. In that case, the excess part of the amount of the interest paid shall remain taxable according to the law, relating to tax, of each territory, but subject to the other provisions of this Agreement.
ARTICLE 12
Royalties
1.
Royalties arising in a territory, being royalties to which a resident of the other territory is beneficially entitled, may be taxed in that other territory.
2.
However, those royalties may also be taxed in the territory in which they arise, and according to the law of that territory, but the tax so charged shall not exceed 12.5 per cent of the gross amount of the royalties.
3.
The term "royalties" 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, trademark 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) of this paragraph; or
(e)
the reception of, or the right to receive, visual images or sounds, or both, transmitted to the public by:
(i)
satellite; or
(ii)
cable, optic fibre or similar technology; or
(f)
the use in connection with television broadcasting or radio broadcasting, or the right to use in connection with television broadcasting or radio broadcasting, visual images or sounds, or both, transmitted by:
(i)
satellite; or
(ii)
cable, optic fibre or similar technology; or
(g)
the use of, or the right to use:
(i)
motion picture films; or
(ii)
films or video tapes for use in connection with television; or
(iii)
tapes for use in connection with radio broadcasting; or
(h)
total or partial forbearance in respect of the use or supply of any property or right referred to in this paragraph.
4.
The provisions of paragraphs 1 and 2 shall not apply if the person beneficially entitled to the royalties, being a resident of a territory, carries on business in the other territory, in which the royalties arise, through a permanent establishment situated in that other territory, or performs in that other territory independent personal services from a fixed base situated in that other territory, and the property or right in respect of which the royalties are paid or credited is effectively connected with that permanent establishment or fixed base. In that case the provisions of Article 7 or Article 14, as the case may be, shall apply.
5.
Royalties shall be deemed to arise in a territory when the payer is an authority of that territory or a subdivision or local authority of that territory or a person who is a resident of that territory for the purposes of its tax. Where, however, the person paying the royalties, whether the person is a resident of a territory or not, has in a territory a permanent establishment or fixed base in connection with which the liability to pay the royalties was incurred, and the royalties are borne by the permanent establishment or fixed base, then the royalties shall be deemed to arise in the territory in which the permanent establishment or fixed base is situated.
6.
Where, by reason of a special relationship between the payer and the person beneficially entitled to the royalties, or between both of them and some other person, the amount of the royalties paid or credited, having regard to what they are paid or credited for, exceeds the amount which might have been expected to have been agreed upon by the payer and the person so entitled in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In that case, the excess part of the amount of the royalties paid or credited shall remain taxable according to the law, relating to tax, of each territory, but subject to the other provisions of this Agreement.
ARTICLE 13
Alienation of property
1.
Income, profits or gains derived by a resident of a territory from the alienation of real property situated in the other territory may be taxed in that other territory.
2.
Income, profits or gains from the alienation of property, other than real property, that forms part of the business property of a permanent establishment which an enterprise of a territory has in the other territory or pertains to a fixed base available in that other territory to a resident of the first-mentioned territory for the purpose of performing independent personal services, including income, profits or gains from the alienation of that permanent establishment (alone or with the whole enterprise) or of that fixed base, may be taxed in that other territory.
3.
Income, profits or gains from the alienation of ships or aircraft operated in international traffic, or of property (other than real property) pertaining to the operation of those ships or aircraft, shall be taxable only in the territory of which the enterprise operating those ships or aircraft is a resident.
4.
Income, profits or gains derived by a resident of a territory from the alienation of shares or comparable interests in a company, the assets of which consist wholly or principally of real property situated in the other territory, may be taxed in that other territory.
5.
Nothing in this Agreement shall affect the application of a law of a territory relating to the taxation of gains of a capital nature derived from the alienation of any property other than that to which any of the preceding paragraphs of this Article apply.
6.
In this Article, the term "real property" has the same meaning as it has in Article 6.
7.
The situation of real property shall be determined for the purposes of this Article in accordance with paragraph 3 of Article 6.
ARTICLE 14
Independent personal services
1.
Income derived by an individual who is a resident of a territory in respect of professional services or other activities of an independent character shall be taxable only in that territory unless a fixed base is regularly available to the individual in the other territory for the purpose of performing the individual's activities. If such a fixed base is available to the individual, the income may be taxed in the other territory but only so much of it as is attributable to activities exercised from that fixed base.
2.
The term "professional services" includes services performed in the exercise of independent scientific, literary, artistic, educational or teaching activities as well as in the exercise of the independent activities of physicians, lawyers, engineers, architects, dentists and accountants.
ARTICLE 15
Dependent personal services
1.
Subject to the provisions of Articles 16, 18 and 19, salaries, wages and other similar remuneration derived by an individual who is a resident of a territory in respect of an employment shall be taxable only in that territory unless the employment is exercised in the other territory. If the employment is so exercised, such remuneration as is derived from that exercise may be taxed in that other territory.
2.
Notwithstanding the provisions of paragraph 1, remuneration derived by an individual who is a resident of a territory in respect of an employment exercised in the other territory shall be taxable only in the first-mentioned territory if:
(a)
the recipient is present in the other territory for a period or periods not exceeding in the aggregate 183 days in any twelve month period commencing or ending in the year of income concerned; and
(b)
the remuneration is paid by, or on behalf of, an employer who is not a resident of that other territory; and
(c)
the remuneration is not deductible in determining taxable profits of a permanent establishment or a fixed base which the employer has in that other territory; and
(d)
the remuneration is, or upon the application of this Article will be, subject to tax in the first-mentioned territory.
3.
Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated by an enterprise of a territory in international traffic shall be taxable only in that territory.
ARTICLE 16
Directors' fees
Directors' fees and similar payments derived by a resident of a territory in the person's capacity as a member of the board of directors of a company which is a resident of the other territory may be taxed in that other territory.
ARTICLE 17
Entertainers and sportspersons
1.
Notwithstanding the provisions of Articles 14 and 15, income derived by entertainers (such as theatrical, motion picture, radio or television artistes and musicians) and sportspersons from their personal activities as such may be taxed in the territory in which these activities are exercised.
2.
Where income in respect of the personal activities of an entertainer or a sportsperson as such accrues not to that entertainer or sportsperson but to another person, that income may, notwithstanding the provisions of Articles 7, 14 and 15, be taxed in the territory in which the activities of the entertainer or sportsperson are exercised.
ARTICLE 18
Pensions and annuities
1.
All pensions and annuities paid to a resident of a territory shall be taxable only in that territory.
2.
The term "annuity" means a stated sum payable periodically at stated times during life or during a specified or ascertainable period of time under an obligation to make the payments in return for adequate and full consideration in money or money's worth.
ARTICLE 19
Public service
1.
Salaries, wages and other similar remuneration, other than a pension or annuity, paid by an authority administering a territory or a subdivision of that territory or by a local authority of that territory to any individual in respect of services rendered in the discharge of public or administrative functions on behalf of such an authority shall be taxable only in that territory. However, such salaries, wages and other similar remuneration shall be taxable only in the other territory if the services are rendered in that other territory and the recipient is a resident of that other territory who:
(a)
is a citizen or national of that territory; or
(b)
did not become a resident of that territory solely for the purpose of performing the services.
2.
The provisions of paragraph 1 shall not apply to salaries, wages and other similar remuneration in respect of services rendered in connection with any trade or business carried on by any authority referred to in paragraph 1. In that case, the provisions of Article 15 or Article 16, as the case may be, shall apply.
ARTICLE 20
Students
Where a student, who is a resident of a territory or who was a resident of that territory immediately before visiting the other territory and who is temporarily present in that other territory solely for the purpose of the student's education, receives payments from sources outside that other territory for the purpose of the student's maintenance or education, those payments shall be exempt from tax in that other territory.
ARTICLE 21
Other income
1.
Items of income of a resident of a territory, wherever arising, not dealt with in the foregoing Articles of this Agreement shall be taxable only in that territory.
2.
However, any such income derived by a resident of a territory from sources in the other territory may also be taxed in that other territory.
3.
The provisions of paragraph 1 shall not apply to income, other than income from real property as defined in paragraph 2 of Article 6, derived by a resident of a territory where that income is effectively connected with a permanent establishment or fixed base situated in the other territory. In that case, the provisions of Article 7 or Article 14, as the case may be, shall apply.
ARTICLE 22
Methods of elimination of double taxation
Subject to the provisions of the law of a territory from time to time in force relating to the allowance of a credit against tax payable in that territory of tax paid outside that territory (which shall not affect the general principle of this Article), tax paid under the law of the other territory and in accordance with this Agreement, whether directly or by deduction, in respect of income derived by a person who is a resident of the first-mentioned territory from sources in the other territory shall be allowed as a credit against tax payable in the first-mentioned territory in respect of that income. The amount of credit, however, shall not exceed the amount of the tax in the first-mentioned territory on that income computed in accordance with its taxation laws and regulations.
ARTICLE 23
Mutual agreement procedure
1.
Where a person considers that the actions of the competent authority of one or both of the territories result or will result for the person in taxation not in accordance with this Agreement, the person may, irrespective of the remedies provided by the domestic law of those territories concerning taxes to which this Agreement applies, present a case to the competent authority of the territory of which the person is a resident. The case must be presented within 3 years from the first notification of the action resulting in taxation not in accordance with this Agreement.
2.
The competent authority shall endeavour, if the claim appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case with the competent authority of the other territory, with a view to the avoidance of taxation which is not in accordance with this Agreement. The solution so reached shall be implemented notwithstanding any time limits in the domestic law of the territories.
3.
The competent authorities shall jointly endeavour to resolve any difficulties or doubts arising as to the interpretation or application of this Agreement. They may also consult together for the elimination of double taxation in cases not provided for in this Agreement.
4.
The competent authorities may communicate with each other directly for the purpose of giving effect to the provisions of this Agreement.
ARTICLE 24
Exchange of information
1.
The competent authorities shall exchange such information as is necessary for carrying out this Agreement or of the domestic law of each of the territories concerning taxes to which this Agreement applies insofar as the taxation under that law is not contrary to this Agreement. Any information received by the competent authority of a territory shall be treated as secret in the same manner as information obtained under the domestic law of that territory and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assessment or collection of, the enforcement or prosecution in respect of, or the determination of appeals in relation to, the taxes to which this Agreement applies. Such persons or authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions.
2.
In no case shall the provisions of paragraph 1 be construed so as to impose on the competent authority of a territory the obligation:
(a)
to carry out administrative measures at variance with the law or the administrative practice of that or of the other territory; or
(b)
to supply information which is not obtainable under the law or in the normal course of the administration of that or of the other territory; or
(c)
to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, or to supply information the disclosure of which would be contrary to public policy.
ARTICLE 25
Entry into effect
This Agreement shall enter into effect on the date on which the Australian Commerce and Industry Office and the Taipei Economic and Cultural Office notify each other in writing that the last of such things has been done as is necessary to give this Agreement effect in the domestic law of the respective territories. This Agreement shall have effect:
(a)
in both territories, in respect of:
(i)
withholding tax on income, profits or gains derived by a non-resident, in relation to income, profits or gains derived on or after the first day of the second month next following that in which the Agreement enters into effect;
(ii)
tax in relation to profits to which Article 8 applies, on or after 1 January 1991;
(b)
in respect of other tax of the territory in which the taxation law administered by the Australian Taxation Office is applied, in relation to income, profits or gains of any year of income beginning on or after 1 July in the calendar year next following that in which the Agreement enters into effect;
(c)
in respect of other tax of the territory in which the taxation law administered by the Department of Taxation, Ministry of Finance, Taipei is applied, in relation to income, profits or gains of any year of income beginning on or after 1 January in the calendar year next following that in which the Agreement enters into effect.
ARTICLE 26
Termination
This Agreement shall continue in effect indefinitely, but an authority administering either territory may, on or before 30 June in any calendar year beginning after the expiration of 5 years from the date of its entry into effect, give to the other written notice of termination and, in that event, the Agreement shall cease to be effective:
(a)
in both territories, in respect of withholding tax on income, profits or gains derived by a non-resident, in relation to income, profits or gains derived on or after the first day of the second month next following that in which the notice of termination is given;
(b)
in respect of other tax of the territory in which the taxation law administered by the Australian Taxation Office is applied, in relation to income, profits or gains of any year of income beginning on or after 1 July in the calendar year next following that in which the notice of termination is given;
(c)
in respect of other tax of the territory in which the taxation law administered by the Department of Taxation, Ministry of Finance, Taipei is applied, in relation to income, profits or gains of any year of income beginning on or after 1 January in the calendar year next following that in which the notice of termination is given.
IN WITNESS WHEREOF the undersigned, being duly authorised, have signed this Agreement.
DONE in duplicate at Canberra this 29th day of May 1996 in the English and Chinese languages, both texts being equally authentic. In case of any divergence of interpretation, the English text shall prevail.
FOR THE AUSTRALIAN
COMMERCE AND INDUSTRY OFFICE: |
FOR THE TAIPEI
ECONOMIC AND CULTURAL OFFICE: |
| Colin Heseltine |
Chien-Hsion Hong |
ANNEX
THE AUSTRALIAN COMMERCE AND INDUSTRY OFFICE AND THE TAIPEI ECONOMIC AND CULTURAL OFFICE,
HAVING REGARD to the Agreement concerning the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes signed today at Canberra (in this Annex called "Agreement");
HAVE AGREED as follows:
SECTION 1.
1.
If a subsequent agreement that is given effect under the International Tax Agreements Act 1953 in the territory in which the taxation law administered by the Australian Taxation Office is applied, includes a Non-Discrimination Article, the parties to this Annex will enter into negotiations with a view to providing the same treatment as is provided for in the Non-Discrimination Article;
SECTION 2.
2.
Income, profits or gains derived by an organisation, or its successors, agreed by the competent authorities in an exchange of letters for the purposes of this paragraph as carrying on activities promoting trade, investment and cultural exchanges between the territories, shall be taxable solely in the territory on whose behalf the activities are carried on. The competent authorities will also specify in their exchange of letters the date from which the organisation shall be so taxable.
This Annex shall form an integral part of the Agreement.
IN WITNESS WHEREOF the undersigned, being duly authorised, have signed this Annex.
DONE in duplicate at Canberra this 29th day of May 1996 in the English and Chinese languages, both texts being equally authentic. In case of any divergence of interpretation, the English text shall prevail.
FOR THE AUSTRALIAN
COMMERCE AND INDUSTRY OFFICE: |
FOR THE TAIPEI
ECONOMIC AND CULTURAL OFFICE: |
| Colin Heseltine |
Chien-Hsion Hong |
Tax Treaties
History
Sch 1-50 have been repealed by No 45 of 2011, s 3 and Sch 1 items 67 and 69, effective 27 June 2011. For transitional provisions see note under s 3(1). The text of current treaties can be found in the Wolters Kluwer online product, Australian Tax Treaties Texts.
Former wording of the Schedules as repealed is reproduced below.
(Repealed) FORMER SCHEDULE 1 - 2003 United Kingdom Convention and Notes
(Repealed by No 45 of 2011)
History
Former Sch 1 repealed by No 45 of 2011, s 3 and Sch 1 item 67, to remove the text of the 2003 United Kingdom Convention and Notes from this Act, effective 27 June 2011. For transitional provisions see note under s 3(1). Sch 1 formerly read:
SCHEDULE 1 - 2003 United Kingdom Convention and Notes
ARTICLE 1 Persons covered
This Convention shall apply to persons who are residents of one or both of the Contracting States.
ARTICLE 2 Taxes covered
1
The existing taxes to which this Convention shall apply are:
(a)
in the case of the United Kingdom:
(i)
the income tax;
(ii)
the corporation tax; and
(iii)
the capital gains tax;
(b)
in the case of Australia:
the income tax, the resource rent tax in respect of offshore projects relating to exploration for or exploitation of petroleum resources, and the fringe benefits tax, imposed under the federal law of Australia.
2
This Convention shall also apply to any identical or substantially similar taxes which are imposed under the federal law of Australia or the law of the United Kingdom after the date of signature of this Convention in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of any substantial changes that have been made in the law of their respective States relating to the taxes to which this Convention applies within a reasonableperiod of time after those changes.
ARTICLE 3 General definitions
1
For the purposes of this Convention, unless the context otherwise requires:
(a)
the term "United Kingdom" means Great Britain and Northern Ireland, including any area outside the territorial sea of the United Kingdom which in accordance with international law has been or may hereafter be designated, under the laws of the United Kingdom concerning the Continental Shelf, as an area within which the rights of the United Kingdom with respect to the seabed and subsoil and their natural resources may be exercised;
(b)
the term "Australia", when used in a geographical sense, excludes all external territories other than:
(i)
the Territory of Norfolk Island;
(ii)
the Territory of Christmas Island;
(iii)
the Territory of Cocos (Keeling) Islands;
(iv)
the Territory of Ashmore and Cartier Islands;
(v)
the Territory of Heard Island and McDonald Islands; and
(vi)
the Coral Sea Islands Territory,
and includes any area adjacent to the territorial limits of Australia (including the Territories specified in this subparagraph) in respect of which there is for the time being in force, consistently with international law, a law of Australia dealing with the exploration for or exploitation of any of the natural resources of the seabed and subsoil of the Continental Shelf;
(c)
the term "Australian tax" means tax imposed by Australia, being tax to which this Convention applies by virtue of Article 2;
(d)
the term "United Kingdom tax" means tax imposed by the United Kingdom, being tax to which this Convention applies by virtue of Article 2;
(e)
the terms "a Contracting State" and "the other Contracting State" mean the United Kingdom or Australia, as the context requires;
(f)
the term "person" includes an individual, a company and any other body of persons, but subject to paragraph 2 of this Article does not include a partnership;
(g)
the term "company" means any body corporate or anything that is treated as a company or body corporate for tax purposes;
(h)
the term "enterprise" applies to the carrying on of any business;
(i)
the terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State;
(j)
the term "international traffic" means any transport by a ship or aircraft operated by an enterprise of a Contracting State, except when the ship or aircraft is operated solely from a place or between places in the other Contracting State;
(k)
the term "competent authority" means:
(i)
in the case of the United Kingdom, the Commissioners of Inland Revenue or their authorised representative;
(ii)
in the case of Australia, the Commissioner of Taxation or an authorised representative of the Commissioner;
(l)
the term "national" means:
(i)
in relation to the United Kingdom, any British citizen, or any British subject not possessing the citizenship of any other Commonwealth country or territory, provided that individual has the right of abode in the United Kingdom; and any company deriving its status as such from the law in force in the United Kingdom;
(ii)
in relation to Australia, an Australian citizen or an individual not possessing citizenship who has been granted permanent residency status; and any company deriving its status as such from the law in force in Australia;
(m)
the term "business" includes the performance of professional services and of other activities of an independent character;
(n)
the term "tax" means Australian tax or United Kingdom tax as the context requires, but does not include any penalty or interest imposed under the law of either Contracting State relating to its tax;
(o)
the term "recognised stock exchange" means:
(i)
the Australian Stock Exchange and any other Australian stock exchange recognised as such under Australian law;
(ii)
the London Stock Exchange and any other United Kingdom investment exchange recognised under United Kingdom law; or
(iii)
any other stock exchange agreed upon by the competent authorities.
2
A partnership deriving its status from Australian law as a limited partnership which is treated as a taxable unit under the law of Australia shall be treated as a person for the purposes of this Convention.
3
As regards the application of this Convention at any time by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning that it has at that time under the laws of that State for the purposes of the taxes to which this Convention applies, any meaning under the applicable tax laws of that State prevailing over a meaning given to the term under other laws of that State.
ARTICLE 4 Residence
1
For the purposes of this Convention, a person is a resident of a Contracting State:
(a)
in the case of the United Kingdom, if the person is a resident of the United Kingdom for the purposes of United Kingdom tax; and
(b)
in the case of Australia, if the person is a resident of Australia for the purposes of Australian tax.
A Contracting State or a political subdivision or local authority of that State is also a resident of that State for the purposes of this Convention.
2
A person is not a resident of a Contracting State for the purposes of this Convention if that person is liable to tax in that State in respect only of income or gains from sources in that State.
3
The status of an individual who, by reason of the preceding provisions of this Article is a resident of both Contracting States, shall be determined as follows:
(a)
that individual shall be deemed to be a resident only of the Contracting State in which a permanent home is available to that individual; but if a permanent home is available in both States, or in neither of them, that individual shall be deemed to be a resident only of the State with which the individual's personal and economic relations are closer (centre of vital interests);
(b)
if the Contracting State in which the centre of vital interests is situated cannot be determined, the individual shall be deemed to be a resident only of the State of which that individual is a national;
(c)
if the individual is a national of both Contracting States or of neither of them, the competent authorities of the Contracting States shall endeavour to resolve the question by mutual agreement.
4
Where by reason of the preceding provisions of this Article a person other than an individual is a resident of both Contracting States, then it shall be deemed to be a resident only of the State in which its place of effective management is situated.
5
Notwithstanding paragraph 4 of this Article, where by reason of paragraph 1 of this Article a company, which is a participant in a dual listed company arrangement, is a resident of both Contracting States then it shall be deemed to be a resident only of the Contracting State in which it is incorporated, provided it has its primary stock exchange listing in that State.
6
The term "dual listed company arrangement" as used in this Article means an arrangement pursuant to which two publicly listed companies, while maintaining their separate legal entity status, shareholdings and listings, align their strategic directions and the economic interests of their respective shareholders through:
(a)
the appointment of common (or almost identical) boards of directors;
(b)
management of the operations of the two companies on a unified basis;
(c)
equalised distributions to shareholders in accordance with an equalisation ratio applying between the two companies, including in the event of a winding up of one or both of the companies;
(d)
the shareholders of both companies voting in effect as a single decision-making body on substantial issues affecting their combined interests; and
(e)
cross-guarantees as to, or similar financial support for, each other's material obligations or operations, except where the effect of the relevant regulatory requirements prevents such guarantees or financial support.
ARTICLE 5 Permanent establishment
1
For the purposes of this Convention, the term "permanent establishment" means a fixed place of business through which the business of an enterprise is wholly or partly carried on.
2
The term "permanent establishment" includes especially:
(a)
a place of management;
(b)
a branch;
(c)
an office;
(d)
a factory;
(e)
a workshop;
(f)
a mine, an oil or gas well, a quarry or any other place relating to the exploration for or exploitation of natural resources; and
(g)
an agricultural, pastoral or forestry property.
3
An enterprise shall be deemed to have a permanent establishment in a Contracting State and to carry on business through that permanent establishment if:
(a)
it has a building site or construction or installation project in that State, or it undertakes a supervisory or consultancy activity in that State connected with such a site or project, but only if that site, project or activity lasts more than 12 months;
(b)
it maintains substantial equipment for rental or other purposes within that other State (excluding equipment let under a hire-purchase agreement) for a period of more than 12 months; or
(c)a person acting in a Contracting State on behalf of an enterprise of the other Contracting State manufactures or processes in the first-mentioned State for the enterprise goods or merchandise belonging to the enterprise.
4
(a)
The duration of activities under subparagraph (a) of paragraph 3 will be determined by aggregating the periods during which activities are carried on in a Contracting State by associated enterprises provided that the activities of the enterprise in that State are connected with the activities carried on in that State by its associate.
(b)
The period during which two or more associated enterprises are carrying on concurrent activities will be counted only once for the purpose of determining the duration of activities.
(c)
Under this Article, an enterprise shall be deemed to be associated with another enterprise if:
(i)
one is controlled directly or indirectly by the other; or
(ii)
both are controlled directly or indirectly by a third person or persons.
5
Notwithstanding the preceding provisions of this Article, an enterprise shall not be deemed to have a permanent establishment merely by reason of:
(a)
the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise;
(b)
the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery;
(c)
the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise;
(d)
the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise, or collecting information, for the enterprise; or
(e)
the maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any other activity of a preparatory or auxiliary character.
6
Notwithstanding the provisions of paragraphs 1 and 2 of this Article, where a person - other than an agent of an independent status to whom paragraph 7 of this Article applies - is acting on behalf of an enterprise and has, and habitually exercises, in a Contracting State an authority to conclude contracts on behalf of the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect of any activities which that person undertakes for that enterprise unless the activities of such person are limited to those mentioned in paragraph 5 of this Article which, if exercised through a fixed place of business, would not make this fixed place of business a permanent establishment under the provisions of that paragraph.
7
An enterprise shall not be deemed to have a permanent establishment in a Contracting State merely because it carries on business in that State through a broker, general commission agent or any other agent of an independent status, provided that such brokers or agents are acting in the ordinary course of their business as such.
8
The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State, or which carries on business in that other State (whether through a permanent establishment or otherwise), shall not of itself make either company a permanent establishment of the other.
ARTICLE 6 Income from real property
1
Income derived by a resident of a Contracting State from real property may be taxed in the Contracting State in which the real property is situated.
2
The term "real property" shall have the meaning which it has under the law of the Contracting State in which the property is situated. The term shall in any case include:
(a)
a lease of land or any other interest in or over land;
(b)
property accessory to real property;
(c)
livestock and equipment used in agriculture and forestry;
(d)
usufruct of real property;
(e)
a right to explore for mineral, oil or gas deposits or other natural resources, and a right to mine those deposits or resources; and
(f)
a right to receive variable or fixed payments either as consideration for or in respect of the exploitation of, or the right to explore or exploit, mineral, oil or gas deposits, quarries or other places of extraction or exploitation of natural resources.
Ships and aircraft shall not be regarded as real property.
3
Any interest or right referred to in paragraph 2 shall be regarded as situated where the land, mineral, oil or gas deposits, quarries or natural resources, as the case may be, are situated or where the exploration may take place.
4
The provisions of paragraph 1 of this Article shall apply to income derived from the direct use, letting, or use in any other form of real property.
5
The provisions of paragraphs 1, 3 and 4 of this Article shall also apply to the income from real property of an enterprise.
ARTICLE 7 Business profits
1
The profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated in that other State. If the enterprise carries on business in that manner, the profits of the enterprise may be taxed in the other State but only so much of them as is attributable to that permanent establishment.
2
Subject to the provisions of paragraph 3 of this Article, where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated in that other State, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment or with other enterprises.
3
In determining the profits of a permanent establishment, there shall be allowed as deductions expenses of the enterprise, being expenses which are incurred for the purposes of the permanent establishment, including executive and general administrative expenses so incurred, whether in the Contracting State in which the permanent establishment is situated or elsewhere.
4
Nothing in this Article shall affect the application of any law of a Contracting State relating to the determination of the tax liability of a person in cases where the information available to the competent authority of that State is inadequate to determine the profits to be attributed to a permanent establishment. In such cases that law shall be applied, having regard to the information that is available, consistently with the principles of this Article.
5
No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise.
6
Where profits include items of income or gains which are dealt with separately in other Articles of this Convention, then the provisions of those Articles shall not be affected by the provisions of this Article.
7
Nothing in this Article shall affect the operation of any law of a Contracting State relating to tax imposed on profits from insurance with non-residents provided that if the relevant law in force in either Contracting State at the date of signature of this Convention is varied (otherwise than in minor respects so as not to affect its general character) the Contracting States shall consult with each other with a view to agreeing to any amendment of this paragraph that may be appropriate.
ARTICLE 8 Shipping and air transport
1
Profits of an enterprise of a Contracting State from the operation of ships or aircraft in international traffic shall be taxable only in that State.
2
Notwithstanding the provisions of paragraph 1 of this Article, profits of an enterprise of a Contracting State from the operation of ships or aircraft may be taxed in the other Contracting State to the extent that they are profits derived from ship or aircraft operations confined solely to places in that other State.
3
For the purposes of this Article, profits from the operation of ships or aircraft in international traffic include:
(a)
profits from the rental on a bareboat basis of ships or aircraft; and
(b)
profits from the use, maintenance or rental of containers (including trailers and related equipment for the transport of containers) used for the transport of goods or merchandise;
provided such rental or such use, maintenance or rental, as the case may be, is directly connected or ancillary to the operation of ships or aircraft in international traffic.
4
The provisions of paragraphs 1 and 2 of this Article shall also apply to profits from the participation in a pool, a joint business or an international operating agency, but only to so much of the profits so derived as is attributable to the participant in proportion to its share in the joint operation.
5
For the purposes of this Article, profits derived from:
(a)
the carriage by ships or aircraft of passengers, livestock, mail, goods or merchandise which are shipped in a Contracting State and are discharged at the same or another place in that State; or
(b)
the use of a ship or aircraft for haulage, survey or dredging activities, or for exploration or extraction activities in relation to natural resources, where such activities are undertaken in a Contracting State;
shall be treated as profits from ship or aircraft operations confined solely to places in that State.
ARTICLE 9 Associated enterprises
1
Where:
(a)
an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State; or
(b)
the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State;
and in either case conditions operate between the two enterprises in their commercial or financial relations which differ from those which might be expected to operate between independent enterprises dealing wholly independently with one another, then any profits which might, but for those conditions, have been expected to accrue to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly.
2
Nothing in this Article shall affect the application of any law of a Contracting State relating to the determination of the tax liability of a person in cases where the information available to the competent authority of that State is inadequate to determine the profits accruing to an enterprise. In such cases that law shall be applied, having regard to the information that is available, consistently with the principles of this Article.
3
Where profits on which an enterprise of a Contracting State has been charged to tax in that State are also included, by virtue of the provisions of paragraphs 1 or 2, in the profits of an enterprise of the other Contracting State and charged to tax in that other State, and the profits so included are profits which might have been expected to have accrued to that enterprise of the other State if the conditions operative between the enterprises had been those which might have been expected to have operated between independent enterprises dealing wholly independently with one another, then the first-mentioned State shall make an appropriate adjustment to the amount of tax it has charged on those profits. In determining such adjustment, due regard shall be had to the other p
View history note
Hide history note