INTERNATIONAL TAX AGREEMENTS AMENDMENT BILL (NO. 1) 2011

i International Tax Agreements Amendment Bill (No. 1) 2011 No. , 2011

Contents

1 Short

title

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2 Commencement

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3 Schedule(s)

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Schedule 1--Existing agreements

Part 1--Amendments

International Tax Agreements Act 1953

Part 2--Transitional provisions

Schedule 2--New agreements

International Tax Agreements Act 1953

International Tax Agreements Amendment Bill (No. 1) 2011 No. , 2011 1

A Bill for an Act to amend the law relating to

taxation, and for related purposes

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the International Tax Agreements

Amendment Act (No. 1) 2011.

2 Commencement

(1) Each provision of this Act specified in column 1 of the table

commences, or is taken to have commenced, in accordance with

column 2 of the table. Any other statement in column 2 has effect

according to its terms.

2 International Tax Agreements Amendment Bill (No. 1) 2011 No. , 2011

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

1. Sections 1 to 3

and anything in

this Act not

elsewhere covered

by this table

The day this Act receives the Royal Assent.

2. Schedule 1

The day this Act receives the Royal Assent.

3. Schedule 2

Immediately after the commencement of the

provision(s) covered by table item 2.

Note:

This table relates only to the provisions of this Act as originally

enacted. It will not be amended to deal with any later amendments of

this Act.

(2) Any information in column 3 of the table is not part of this Act.

Information may be inserted in this column, or information in it

may be edited, in any published version of this Act.

3 Schedule(s)

Each Act that is specified in a Schedule to this Act is amended or

repealed as set out in the applicable items in the Schedule

concerned, and any other item in a Schedule to this Act has effect

according to its terms.

Existing agreements Schedule 1

Amendments Part 1

International Tax Agreements Amendment Bill (No. 1) 2011 No. , 2011 3

Schedule 1--Existing agreements

Part 1--Amendments

International Tax Agreements Act 1953

1 Title

Omit "Conventions and Agreements", substitute "Treaties and other

Agreements".

2 Subsection 3(1)

Repeal the subsection, substitute:

(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 2011, 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).

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:

(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

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4 International Tax Agreements Amendment Bill (No. 1) 2011 No. , 2011

(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.

3 Subsections 3(7) and (7A)

Repeal the subsections.

4 Subsection 3(8)

Omit "6 (1) of the Assessment Act", substitute "6(1) of the Income Tax

Assessment Act 1936".

5 After section 3

Insert:

3AAA Definitions--current agreements

(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).

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).

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Amendments Part 1

International Tax Agreements Amendment Bill (No. 1) 2011 No. , 2011 5

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 by the

Belgian protocol (No. 1)).

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).

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

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6 International Tax Agreements Amendment Bill (No. 1) 2011 No. , 2011

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.

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

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Amendments Part 1

International Tax Agreements Amendment Bill (No. 1) 2011 No. , 2011 7

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 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).

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).

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).

Indonesian agreement means the Agreement between the

Government of Australia and the Government of the Republic of

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8 International Tax Agreements Amendment Bill (No. 1) 2011 No. , 2011

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).

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.

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International Tax Agreements Amendment Bill (No. 1) 2011 No. , 2011 9

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

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:

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.

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Part 1 Amendments

10 International Tax Agreements Amendment Bill (No. 1) 2011 No. , 2011

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).

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.

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).

Netherlands agreement means:

(a) the Agreement between Australia and the Kingdom of the

Netherlands for the avoidance of double taxation and the

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International Tax Agreements Amendment Bill (No. 1) 2011 No. , 2011 11

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.

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12 International Tax Agreements Amendment Bill (No. 1) 2011 No. , 2011

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).

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.

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International Tax Agreements Amendment Bill (No. 1) 2011 No. , 2011 13

Note:

The text of this protocol is set out in Australian Treaty 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

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14 International Tax Agreements Amendment Bill (No. 1) 2011 No. , 2011

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 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.

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).

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International Tax Agreements Amendment Bill (No. 1) 2011 No. , 2011 15

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).

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16 International Tax Agreements Amendment Bill (No. 1) 2011 No. , 2011

(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.

3AAB Definitions--agreements for earlier periods

(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

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International Tax Agreements Amendment Bill (No. 1) 2011 No. , 2011 17

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).

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

Schedule 1 Existing agreements

Part 1 Amendments

18 International Tax Agreements Amendment Bill (No. 1) 2011 No. , 2011

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).

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).

Existing agreements Schedule 1

Amendments Part 1

International Tax Agreements Amendment Bill (No. 1) 2011 No. , 2011 19

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).

(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.

(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.

6 Paragraphs 3AA(2)(a) and (3)(a)

Omit "2003".

7 Subsection 4(2)

Omit "that Act", substitute "the Income Tax Assessment Act 1936".

8 Sections 5 and 5A

Repeal the sections, substitute:

5 Current agreements have the force of law

(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.

Schedule 1 Existing agreements

Part 1 Amendments

20 International Tax Agreements Amendment Bill (No. 1) 2011 No. , 2011

Current agreements

Agreement Related

provisions

Argentine agreement

section 11ZI

Belgian protocol (No. 1)

section 11C

Belgian protocol (No. 2)

section 11C

British Virgin Islands agreement

nil

Canadian protocol (No. 1)

section 6A

Chinese agreement

section 11S

Czech agreement

nil

Fijian agreement

nil

Finnish agreement

nil

French convention

nil

Greek airline profits agreement

nil

Hungarian agreement

nil

Indian agreement

nil

Indonesian agreement

nil

Isle of Man agreement

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

Mexican agreement

nil

Netherlands agreement

section 11A

Netherlands protocol (No. 2)

section 11A

New Zealand convention

nil

Norwegian convention

nil

Papua New Guinea agreement

nil

Polish agreement

section 11ZA

Romanian agreement

nil

Russian agreement

nil

Singaporean protocol (No. 1)

section 7

Singaporean protocol (No. 2)

section 7

Existing agreements Schedule 1

Amendments Part 1

International Tax Agreements Amendment Bill (No. 1) 2011 No. , 2011 21

Current agreements

Agreement Related

provisions

Slovak agreement

nil

South African agreement

nil

South African protocol (No. 2)

nil

Spanish agreement

nil

Sri Lankan agreement

nil

Taipei agreement

section 11ZF

Thai agreement

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

(2) Subsection (1) does not apply to Article 23 of the United States

convention (as amended by the United States protocol (No. 1)).

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.

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

Schedule 1 Existing agreements

Part 1 Amendments

22 International Tax Agreements Amendment Bill (No. 1) 2011 No. , 2011

Agreement

New Zealand 2005 protocol

Norwegian 1982 convention

United Kingdom 1946 agreement

United Kingdom 1967 agreement

United Kingdom 1980 protocol

United States 1953 convention

9 Subsections 6(1) and (3)

Repeal the subsections.

10 Subsection 6(4)

Omit "(4)".

11 Subsection 6(4)

Omit "provisions of the convention with the United States of America

do not have the effect of subjecting", substitute "United States

convention (as amended by the United States protocol (No. 1)) does not

subject".

12 Section 6AA

Repeal the section.

13 Subsection 6A(1)

Omit "(1)".

14 Subsection 6A(3)

Repeal the subsection.

15 Sections 6AB to 6C

Repeal the sections.

16 Subsection 7(1)

Omit "(1)".

17 Subsection 7(1)

Omit "Singapore agreement", substitute "Singaporean agreement".

Existing agreements Schedule 1

Amendments Part 1

International Tax Agreements Amendment Bill (No. 1) 2011 No. , 2011 23

18 Sections 7A to 10

Repeal the sections.

19 Subsection 10A(1)

Omit "(1)".

Note 1: The heading to section 11 is altered by omitting "the Federal Republic of".

Note 2: The heading to section 11A is altered by omitting "the Kingdom of".

20 Subsection 11A(1)

Repeal the subsection.

21 Subsection 11A(3)

Omit "(3)".

22 Subsection 11A(3)

After "Netherlands agreement", insert "(as amended by the Netherlands

protocol (No. 2))".

23 Sections 11AA and 11B

Repeal the sections.

Note:

The heading to section 11C is altered by omitting "the Kingdom of".

24 Subsection 11C(1)

Omit "(1)".

25 Sections 11CA and 11CB

Repeal the sections.

Note:

The heading to section 11D is altered by omitting "the Republic of".

26 Subsection 11D(1)

Omit "(1)".

Note:

The heading to section 11E is altered by omitting "the Swiss Federal Council" and

substituting "Switzerland".

27 Subsection 11E(1)

Omit "(1)".

28 After subsection 11F(1)

Schedule 1 Existing agreements

Part 1 Amendments

24 International Tax Agreements Amendment Bill (No. 1) 2011 No. , 2011

Insert:

(2) The Malaysian agreement, as amended by:

(a) the Malaysian protocol (No. 1); and

(b) the Malaysian protocol (No. 2);

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.

29 Subsection 11F(4)

Repeal the subsection.

30 Subsection 11FA(1)

Repeal the subsection.

31 Subsections 11FA(2) and (3)

Omit "first Malaysian protocol", substitute "Malaysian protocol

(No. 1)".

32 Subsection 11FB(1)

Repeal the subsection.

33 Subsections 11FB(2) and (3)

Omit "second Malaysian protocol", substitute "Malaysian protocol

(No. 2)".

34 Subsection 11G(1)

Omit "(1)".

Note:

The heading to section 11H is altered by omitting "the Kingdom of".

35 Subsection 11K(1)

Omit "(1)".

Note:

The heading to section 11L is altered by omitting "the Republic of".

36 Subsection 11L(1)

Omit "(1)".

37 Sections 11M and 11MA

Repeal the sections.

Existing agreements Schedule 1

Amendments Part 1

International Tax Agreements Amendment Bill (No. 1) 2011 No. , 2011 25

38 Subsection 11N(1)

Omit "(1)".

39 Sections 11P and 11PA

Repeal the sections.

Note:

The heading to section 11Q is altered by omitting "the People's Republic of".

40 Subsection 11Q(1)

Omit "(1)".

Note:

The heading to section 11R is altered by omitting "the Republic of".

41 Subsection 11R(1)

Omit "(1)".

Note:

The heading to section 11S is altered by omitting "the People's Republic of".

42 Subsection 11S(1)

Repeal the subsection.

43 Sections 11T to 11Z

Repeal the sections.

44 Subsection 11ZA(1)

Repeal the subsection.

Note:

The heading to section 11ZA is altered by omitting "the Republic of".

45 Subsection 11ZA(2)

Omit "(2)".

46 Sections 11ZB and 11ZC

Repeal the sections.

47 Subsection 11ZCA(1)

Repeal the subsection.

Note:

The heading to section 11ZCA is altered by omitting "the Socialist Republic of".

48 Subsection 11ZCA(2)

Omit "(2)".

Schedule 1 Existing agreements

Part 1 Amendments

26 International Tax Agreements Amendment Bill (No. 1) 2011 No. , 2011

49 Subsection 11ZCA(2)

Omit "Vietnamese notes for the purpose of giving effect to

subsection (1)", substitute "Vietnamese notes (No. 1) for the purpose of

giving effect to those notes".

50 Sections 11ZD and 11ZE

Repeal the sections.

51 Subsection 11ZF(1)

Repeal the subsection.

52 Subsection 11ZF(5)

Omit "Assessment Act", substitute "Income Tax Assessment Act 1936".

53 Paragraph 11ZF(6)(a)

Omit "subsection 3(1)", substitute "subsection 3AAA(1)".

54 Subsection 11ZF(6)

Omit "Assessment Act", substitute "Income Tax Assessment Act 1936".

55 Sections 11ZG to 11ZH

Repeal the sections.

56 Subsection 11ZI(1)

Repeal the subsection.

57 Subsection 11ZI(2)

Omit "(2)".

58 Sections 11ZJ to 11ZO

Repeal the sections.

59 Subsection 17A(3) (definition of unit trust dividend)

Omit "Assessment Act", substitute "Income Tax Assessment Act 1936".

60 Subsections 17A(4) and (5)

Omit "Assessment Act", substitute "Income Tax Assessment Act 1936".

Existing agreements Schedule 1

Amendments Part 1

International Tax Agreements Amendment Bill (No. 1) 2011 No. , 2011 27

61 Subsection 20(1)

Omit "United States convention", substitute "United States convention

(as amended)".

62 Subsection 20(6)

Insert:

United States convention (as amended) means the United States

convention as amended by the United States protocol (No. 1).

63 Subsection 20(6) (definition of United States tax)

Omit "United States convention", substitute "United States convention

(as amended)".

64 Section 21

Omit "Assessment Act", substitute "Income Tax Assessment Act 1936".

65 Subparagraph 24(1)(b)(i)

Omit "2003".

66 Subsection 24(1) (note)

Omit "2003".

67 Schedules 1 to 40

Repeal the Schedules.

68 Schedule 41

Renumber as Schedule 1.

69 Schedules 42 to 50

Repeal the Schedules.

Schedule 1 Existing agreements

Part 2 Transitional provisions

28 International Tax Agreements Amendment Bill (No. 1) 2011 No. , 2011

Part 2--Transitional provisions

70 Definitions

In this Part:

commencement day means the day this Schedule commences.

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.

New agreements Schedule 2

International Tax Agreements Amendment Bill (No. 1) 2011 No. , 2011 29

Schedule 2--New agreements

International Tax Agreements Act 1953

1 Subsection 3AAA(1)

Insert:

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:

In 2011, the text of this agreement was accessible through the

Australian Treaties Library on the AustLII website

(www.austlii.edu.au).

2 Subsection 3AAA(1)

Insert:

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:

In 2011, the text of this convention and protocol was accessible

through the Australian Treaties Library on the AustLII website

(www.austlii.edu.au).

3 Subsection 3AAA(1)

Insert:

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.

Schedule 2 New agreements

30 International Tax Agreements Amendment Bill (No. 1) 2011 No. , 2011

Note:

In 2011, the text of this agreement was accessible through the

Australian Treaties Library on the AustLII website

(www.austlii.edu.au).

4 Subsection 3AAA(1)

Insert:

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:

In 2011, the text of this agreement was accessible through the

Australian Treaties Library on the AustLII website

(www.austlii.edu.au).

5 Subsection 3AAA(1)

Insert:

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:

In 2011, the text of this protocol was accessible through the Australian

Treaties Library on the AustLII website (www.austlii.edu.au).

6 Subsection 3AAA(1)

Insert:

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 2011, the text of this agreement was accessible through the

Australian Treaties Library on the AustLII website

(www.austlii.edu.au).

7 Subsection 3AAA(1)

Insert:

New agreements Schedule 2

International Tax Agreements Amendment Bill (No. 1) 2011 No. , 2011 31

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:

In 2011, the text of this convention and protocol was accessible

through the Australian Treaties Library on the AustLII website

(www.austlii.edu.au).

8 Subsection 5(1) (after table item dealing with Argentine

agreement)

Insert:

Aruban agreement

nil

9 Subsection 5(1) (after table item dealing with Canadian

protocol (No. 1))

Insert:

Chilean convention

nil

10 Subsection 5(1) (after table item dealing with Chinese

agreement)

Insert:

Cook Islands agreement

nil

11 Subsection 5(1) (after table item dealing with Greek airline

profits agreement)

Insert:

Guernsey agreement

nil

12 Subsection 5(1) (after table item dealing with Malaysian

protocol (No. 2))

Insert:

Malaysian protocol (No. 3)

section 11F

13 Subsection 5(1) (after table item dealing with Russian

agreement)

Commonwealth of Australia Bills

INTERNATIONAL TAX AGREEMENTS AMENDMENT BILL (NO. 1) 2011