Commonwealth Numbered Acts

INCOME TAX (INTERNATIONAL AGREEMENTS) AMENDMENT ACT 1984 No. 125 of 1984 - SECT 3

3. (1) Section 3 of the Principal Act is amended -
(a) by omitting from sub-section (1) the definition of "the Belgian agreement"
and substituting the following definitions:

" 'the 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 (being the agreement a copy of which in the
English language is set out in Schedule 13), as amended by the
Belgian protocol;

" 'the Belgian protocol' means the Protocol amending 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, being the protocol a
copy of which in the English language is set out in Schedule
13A;";

   (b)  by inserting after the definition of "the Malaysian agreement" in
sub-section (1) the following definition:

" 'the 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,
being the agreement a copy of which is set out in Schedule 24;";
and

   (c)  by adding at the end thereof the following sub-sections:

"(11) Where -

   (a)  a beneficiary of a trust estate (not being a corporate unit trust)
who is a resident of a country with which, or with the
government of which, Australia, or the Government of
Australia, has made an agreement before the commencement of
this sub-section is presently entitled, either directly or through
one or more interposed trust estates, to a share of the income of
the trust estate derived from the carrying on by the trustee in
Australia of a business through a permanent establishment in
Australia; and

   (b)  under the agreement, the income is to be dealt with in
accordance with the article (in this sub-section referred to as
the 'business profits article') of the agreement relating to the
taxing of income of an enterprise of a Contracting State where
the enterprise carries on a business in the other Contracting
State through a permanent establishment in the other
Contracting State, for the purpose of determining whether the beneficiary's
share of the income may be taxed in Australia in accordance with the business
profits article -

   (c)  the beneficiary shall be deemed to carry on in Australia,
through a permanent establishment in Australia, the business
carried on in Australia by the trustee; and

   (d)  the beneficiary's share of the income shall be deemed to be
attributable to that permanent establishment.

"(12) In sub-section (11) -
'Contracting State', in relation to an agreement, means a country
which, or the government of which, is a party to the agreement;
'corporate unit trust' means a trust estate that is a corporate unit
trust for the purposes of Division 6B of Part III of the
Assessment Act;
'income' includes profit;
'permanent establishment' in relation to an agreement, has the same
meaning as in the agreement.".

(2) The amendment made by paragraph (1) (c) applies to a share of the income
of a trust estate to which a beneficiary became or becomes presently entitled
after 19 August 1984.