Explanatory Notes
(Circulated by the Treasurer, the Rt. Hon. Sir Arthur Fadden.)INTRODUCTORY NOTE
The primary purpose of this Bill is to give the force of law in Australia to an agreement entered into by Australia and Canada for the avoidance of double taxation on incomes flowing between the two countries. A secondary purpose is to amend section 16 of the Income Tax (International Agreements) Act 1953 in order to delete references to interest on certain Commonwealth loans which have been redeemed since that Act came into effect.
The agreement with Canada was signed on 1st October, 1957, and was preceded by agreements with the United Kingdom in 1946 and the United States of America in 1953. The two earlier agreements, which are still operative, received Parliamentary sanction and the agreement with Canada requires the force of law to be given to it by both countries before it becomes effective. The Canadian legislation for this purpose has already been enacted, having been assented to on 31st January, 1958.
The agreement is printed in full as a Schedule to the Bill and it is proposed to incorporate it as The Third Schedule to the Income Tax (International Agreements) Act.
Notes on the clauses of the Bill are given below and these are followed by explanations of the various articles of the agreement with Canada.
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