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Edited version of private advice
Authorisation Number: 1052087034566
Date of advice: 16 February 2023
Ruling
Subject: Permanent establishment
Question 1
Are the activities associated with the design and construction of the equipment outside of Australia and their delivery in Australia as part of the Project undertaken by Foreign Co part of a permanent establishment of Foreign Co in Australia under Article 5 of the Tax Treaty?
Answer
No.
Question 2
Do the activities associated with the assembly and installation of the equipment which are undertaken in Australia by Australia Sub and the activities associated with the design and construction of a Facility (but excluding supervisory activities) which are undertaken in Australia by an unrelated Australian resident Contractor Co as part of the Project give rise to a permanent establishment to Foreign Co in Australia under Article 5 of the Tax Treaty (aside from Article 5(4)) in respect of the Project?
Answer
Yes.
Question 3
Do the supervisory activities undertaken by Australia Sub on behalf of Foreign Co at the Facility as part of the Project give rise to a permanent establishment for Foreign Co in Australia under Article 5(4) of the Tax Treaty?
Answer
Yes.