| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of private advice
Authorisation Number: 1051619989600
Date of advice: 23 December 2019
Ruling
Subject: Interest withholding tax
The Commissioner issued a private ruling to a non-resident entity that it is not a 'financial institution' for the purposes of Article 11(3)b) of 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 [2003] ATS 22.
In respect of interest income derived from Australian residents, the Commissioner ruled that the entity was liable to interest withholding tax under subsection 128B(2) of the Income Tax Assessment Act 1936 (ITAA 1936).
In respect of receivables activity income derived from Australian residents, the Commissioner ruled that the entity was not liable to interest withholding tax under subsection 128B(2) of the ITAA 1936.