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Edited version of your private ruling
Authorisation Number: 1012573333629
Ruling
Subject: Financial institution
Question 1
Does Article 11 of the Convention between the Government of A and the Government of the B apply to a foreign entity?
Answers
Yes.
Question 2
Is ForCo liable to withholding tax under section 128B of the Income Tax Assessment Act 1936 (ITAA 1936)?
Answers
No
Relevant facts
ForCo structures and provides finance and managing assets for third party investors. ForCo has subsidiaries overseas. ForCo receives interest payments from overseas subsidiaries. ForCo is a resident of a contracting state (i.e. Government A) that has entered into a double tax agreement with Government B.
Relevant legislative provisions
Convention between the Government of A and the Government of B
Reasons for decision
Question 1
The relevant requirements of Article 11 of the Convention between the Government of A and the Government of the B were all satisfied
Question 2
The relevant requirements of section 128B of the ITAA 1936 were satisfied.