Commonwealth Consolidated Acts

INTERNATIONAL TAX AGREEMENTS ACT 1953 - SECT 11ZF

  (2)   For the purposes of the Assessment Act, if:

  (a)   a person derives income, profits or gains; and

  (b)   for the purposes of the Taipei agreement, the person is a resident of the foreign territory; and

  (c)   under any of Articles 6 to 8, 10 to 17 and 19 to 21 of the agreement, the income, profits or gains may be taxed in the Australian territory;

the income, profits or gains are taken to be derived from sources in the Australian territory.

  (3)   For the purposes of the Assessment Act and Article 22 of the Taipei agreement, if:

  (a)   a person derives income, profits or gains; and

  (b)   for the purposes of the agreement, the person is a resident of the Australian territory; and

  (c)   under any of Articles 6 to 8, 10 to 17 and 19 to 21 of the agreement, the income, profits or gains may be taxed in the foreign territory;

the income, profits or gains are taken to have been derived from sources in the foreign territory.

  (4)   The provisions of the Taipei agreement do not have the effect of subjecting to Australian tax any interest or royalties paid by a resident of the Australian territory to a resident of the foreign territory that, apart from the agreement, would not be subject to Australian tax.

  (5)   Section   170 of the Income Tax Assessment Act 1936 does not prevent the amendment of an assessment made before the commencement of this section for the purpose of giving effect to the Taipei agreement.

  (6)   If:

  (a)   an exchange of letters takes place for the purposes of paragraph   2 of the Annex mentioned in paragraph   (b) of the definition of Taipei agreement in subsection   3AAA(1); and

  (b)   as a result of the exchange, income, profits or gains derived by an organisation before the exchange become taxable under paragraph   2 of the Annex solely in the Australian territory or solely in the foreign territory; and

  (c)   before the exchange and whether before or after the commencement of this section, an assessment was made in which the income, profits or gains were not taxed in that way;

section   170 of the Income Tax Assessment Act 1936 does not prevent the amendment of the assessment for the purpose of taxing the income, profits or gains in that way.

  (7)   In this section:

"Australian territory" means the territory mentioned in subparagraph   1(a) of Article 2 of the Taipei agreement.

"foreign territory" means the territory mentioned in subparagraph   1(b) of Article 2 of the Taipei agreement.