Commonwealth Numbered Acts

INCOME TAX (INTERNATIONAL AGREEMENTS) AMENDMENT ACT 1976 No. 52 of 1976 - SECT 7

7. (1) Section 12 of the Principal Act is amended-

   (a)  by omitting the word ''or'' at the end of paragraph (ad) of
        sub-section (1); and

   (b)  by inserting after paragraph (ad) of sub-section (1) the following
        paragraphs:-

''(ae) income being-

        (i)    interest to which-

                (A)  paragraph (1) of Article 10 of the Netherlands agreement
                     applies by reason of sub-paragraph (b) of paragraph (3)
                     of that Article; or

                (B)  paragraph (1) of Article 11 of the Netherlands agreement
                     applies; or

        (ii)   royalties to which paragraph (1) of Article 12 of the
               Netherlands agreement applies,

where the income was derived, in the year of income that commenced on 1 July
1975, or a subsequent year of income, from sources in the Netherlands;

   (af) income being interest or royalties to which paragraph (1) of Article
        10 or paragraph (1) of Article 11 of the French agreement applies,
        where the income was derived, in the year of income that commenced on
        1 July 1972, or a subsequent year of income, from sources in France;
        or''.

(2) If a taxpayer derived, on or before 13 April 1976, income to which
paragraph 12 (1) (af) of the Principal Act as amended by this Act applies,
that paragraph in its application in relation to that income shall not operate
to increase the Australian tax payable by the taxpayer in respect of the year
of income unless there is a decrease, by virtue of the French agreement, in
the tax payable under the laws of France in respect of that income and, where
there is such a decrease, the amount of the increase shall not exceed the
amount of the decrease expressed in Australian currency.

(3) The Commissioner may amend an assessment made before the date of entry
into force of the French agreement for the purpose of giving effect to
paragraph 12 (1) (af) of the Principal Act as amended by this Act (including
that paragraph as affected by sub-section (2) of this section).