{"id":"C1953A00082","name":"International Tax Agreements Act 1953","slug":"international-tax-agreements-act-1953","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"82 of 1953","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":1146,"registerId":"C2024C00814","compilationNumber":"45","startDate":"2024-12-11","status":"InForce","reasons":[{"affect":"Amend","markdown":"sch 1 (items 30, 31) of the [Treasury Laws Amendment (Multinational—Global and Domestic Minimum Tax) (Consequential) Act 2024](/C2024A00134)","dateChanged":null,"amendedByTitle":null,"affectedByTitle":{"name":"Treasury Laws Amendment (Multinational—Global and Domestic Minimum Tax) (Consequential) Act 2024","year":2024,"number":134,"titleId":"C2024A00134","provisions":"sch 1 (items 30, 31)","seriesType":"Act","optionalSeriesNumber":null}}],"registeredAt":"2024-12-17T14:43:38.274Z"},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Short title","content":"#### 1 Short title\n\n This Act may be cited as the International Tax Agreements Act 1953.","sortOrder":0},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n This Act shall come into operation on the day on which it receives the Royal Assent.","sortOrder":1},{"sectionNumber":"3","sectionType":"section","heading":"Interpretation","content":"#### 3 Interpretation\n\n (1) In this Act:\n\n> agreement means a treaty or other agreement described in section 3AAA (about current agreements) or 3AAB (about agreements for earlier periods).\n\n> Note: Most of the conventions, protocols and other agreements described in these sections are set out in the Australian Treaty Series. In 2023, 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).\n\n> Assessment Act means the Income Tax Assessment Act 1936 or the Income Tax Assessment Act 1997.\n\n> Australian tax means:\n\n (a) income tax imposed as such by an Act; or\n (b) fringe benefits tax imposed by the Fringe Benefits Tax Act 1986.\n\n> Note: This includes Medicare levy (see subsection (10)).\n\n> foreign tax means tax, other than Australian tax, which is the subject of an agreement.\n\n> prescribed trust estate, in relation to a year of income, means a trust estate that is a public trading trust, within the meaning of Division 6C of Part III of the Income Tax Assessment Act 1936, in relation to the year of income.\n\n (2) For the purpose of this Act and the Assessment Act, a reference in an agreement to profits of an activity or business shall, in relation to Australian tax, be read, where the context so permits, as a reference to taxable income derived from that activity or business.\n (2A) After the commencement of this subsection, a reference in an agreement to income from shares, or to income from other rights participating in profits, does not include a reference to a return on a debt interest (as defined in Subdivision 974‑B of the Income Tax Assessment Act 1997).\n (3) For the purposes of this Act, an amount of income derived by a person, being income other than interest or royalties, shall be deemed to be income attributable to interest or royalties, as the case may be:\n (a) if the person derived the amount of income by reason of being beneficially entitled to an amount representing the interest or royalties; or\n (b) if the person derived the amount of income as a beneficiary in a trust estate and the amount of income can be attributed, directly or indirectly, to the interest or royalties or to an amount that is to be deemed, by any application or successive applications of this subsection, to be an amount of income attributable to the interest or royalties.\n (4) Where a beneficiary in a trust estate, other than a trust estate that is a prescribed trust estate, in relation to the year of income, is presently entitled to income of the trust estate, that income shall, for the purposes of this Act, be deemed to be an amount of income derived by the person.\n (5) To the extent that an agreement provides that the expression immovable property has the meaning it has under the law of Australia, that expression, for the purposes of that agreement, includes real property.\n (8) Where, by virtue of a provision of an agreement, the expression royalties as used in, or in a particular provision of, that agreement has the meaning that that expression has under the law of Australia relating to income tax, that expression has, for the purposes of that agreement or of that particular provision, as the case may be, the meaning that that expression has by virtue of subsection 6(1) of the Income Tax Assessment Act 1936.\n (9) Where, by virtue of a provision of an agreement, expressions used in, or in a particular provision of, that agreement and not otherwise defined for the purposes of that agreement or of that particular provision have the meanings that those expressions have under the law of Australia relating to income tax, subsection (8) does not affect the interpretation of that agreement or of that particular provision, as the case may be, in relation to the meaning of expressions other than the expression royalties.\n (10) For the purposes of this Act, Medicare levy shall be deemed to be income tax and to be imposed as such and, unless the contrary intention appears, references to income tax or tax shall be construed accordingly.\n (11) Where:\n (a) a beneficiary of a trust estate (not being a prescribed trust estate) 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 subsection 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\n (b) under the agreement, the income is to be dealt with in accordance with the article (in this subsection 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;\n 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:\n (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\n (d) the beneficiary’s share of the income shall be deemed to be attributable to that permanent establishment.\n (11A) If:\n (a) the licensee of a spectrum licence (within the meaning of the Radiocommunications Act 1992), or a person authorised under section 68 of that Act by the licensee, derives income from operating radiocommunications devices (within the meaning of that Act) under the licence or from authorising others to do so; and\n (b) the licensee or authorised person is a resident of a country (other than Australia), or a territory (other than an Australian‑controlled territory), to whose residents an agreement applies; and\n (c) under the agreement, the income is to be dealt with in accordance with the business profits article of the agreement referred to in paragraph 3(11)(b);\n for the purpose of determining whether the income may be taxed in Australia in accordance with the business profits article:\n (d) the licensee or authorised person is taken to carry on a business, through a permanent establishment, in Australia; and\n (e) the income is taken to be attributable to that permanent establishment.\n (12) In subsections (11) and (11A):\n\n> Contracting State, in relation to an agreement, means a country which, or the government of which, is a party to the agreement.\n\n> income includes profit.\n\n> permanent establishment in relation to an agreement, has the same meaning as in the agreement.","sortOrder":2},{"sectionNumber":"3AAA","sectionType":"section","heading":"Definitions—current agreements","content":"#### 3AAA Definitions—current agreements\n\n (1) In this Act:\n\n> Argentine agreement means:\n\n (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\n (b) the protocol to that agreement;\n each done at Buenos Aires on 27 August 1999.\n\n> Note: The text of this agreement and protocol is set out in Australian Treaty Series 1999 No. 36 (\\[1999\\] ATS 36).\n\n> 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.\n\n> Note: The text of this agreement is set out in Australian Treaty Series 2011 No. 35 (\\[2011\\] ATS 35).\n\n> 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.\n\n> Note 1: The text of this agreement is set out in Australian Treaty Series 1988 No. 21 (\\[1988\\] ATS 21).\n\n> Note 2: Section 11R gives this agreement the force of law.\n\n> 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.\n\n> Note 1: The text of this agreement is set out in Australian Treaty Series 1979 No. 21 (\\[1979\\] ATS 21).\n\n> Note 2: Section 11C gives this agreement the force of law.\n\n> Belgian protocol (No. 1) means the protocol, done at Canberra on 20 March 1984, amending the Belgian agreement.\n\n> Note: The text of this protocol is set out in Australian Treaty Series 1986 No. 25 (\\[1986\\] ATS 25).\n\n> 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)).\n\n> Note: The text of this protocol is set out in Australian Treaty Series 2014 No. 37 (\\[2014\\] ATS 37).\n\n> 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.\n\n> Note: The text of this agreement is set out in Australian Treaty Series 2010 No. 13 (\\[2010\\] ATS 13).\n\n> 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.\n\n> Note 1: The text of this convention is set out in Australian Treaty Series 1981 No. 14 (\\[1981\\] ATS 14).\n\n> Note 2: Section 6A gives this convention the force of law.\n\n> Canadian protocol (No. 1) means the protocol, done at Canberra on 23 January 2002, amending the Canadian convention.\n\n> Note: The text of this protocol is set out in Australian Treaty Series 2002 No. 26 (\\[2002\\] ATS 26).\n\n> Chilean convention means:\n\n (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\n (b) the protocol to that convention;\n each done at Santiago on 10 March 2010.\n\n> Note: The text of this convention and protocol is set out in Australian Treaty Series 2013 No. 7 (\\[2013\\] ATS 7).\n\n> 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.\n\n> Note: The text of this agreement is set out in Australian Treaty Series 1990 No. 45 (\\[1990\\] ATS 45).\n\n> 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 and revenues derived by air transport enterprises from international air transport, done at Beijing on 22 November 1985.\n\n> Note 1: The text of this agreement is set out in Australian Treaty Series 1986 No. 31 (\\[1986\\] ATS 31).\n\n> Note 2: Section 11Q gives this agreement the force of law.\n\n> 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.\n\n> Note: The text of this agreement is set out in Australian Treaty Series 2014 No. 13 (\\[2014\\] ATS 13).\n\n> 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.\n\n> Note: The text of this agreement is set out in Australian Treaty Series 1995 No. 30 (\\[1995\\] ATS 30).\n\n> 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.\n\n> Note 1: The text of this agreement is set out in Australian Treaty Series 1981 No. 26 (\\[1981\\] ATS 26).\n\n> Note 2: Section 11H gives this agreement the force of law.\n\n> 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.\n\n> Note: The text of this agreement is set out in Australian Treaty Series 1990 No. 44 (\\[1990\\] ATS 44).\n\n> Finnish agreement means:\n\n (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\n (b) the protocol to that agreement;\n each done at Melbourne on 20 November 2006.\n\n> Note: The text of this agreement and protocol is set out in Australian Treaty Series 2007 No. 36 (\\[2007\\] ATS 36).\n\n> French convention means:\n\n (a) the Convention between the Government of Australia and the Government of the French Republic for the avoidance of double taxation with respect to taxes on income and the prevention of fiscal evasion; and\n (b) the protocol to that convention;\n each done at Paris on 20 June 2006.\n\n> Note 1: The text of this convention and protocol is set out in Australian Treaty Series 2009 No. 13 (\\[2009\\] ATS 13).\n\n> Note 2: Subsection (2) applies to this convention and protocol.\n\n> German agreement means:\n\n (a) the Agreement between Australia and the Federal Republic of Germany for the elimination of double taxation with respect to taxes on income and on capital and the prevention of fiscal evasion and avoidance; and\n (b) the protocol to that agreement;\n each done at Berlin on 12 November 2015.\n\n> Note: The text of this agreement (including the protocol) is set out in Australian Treaty Series 2016 No. 23 (\\[2016\\] ATS 23).\n\n> 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.\n\n> Note: The text of this agreement is set out in Australian Treaty Series 1981 No. 10 (\\[1981\\] ATS 10).\n\n> 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.\n\n> Note: The text of this agreement is set out in Australian Treaty Series 2011 No. 25 (\\[2011\\] ATS 25).\n\n> 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.\n\n> Note: The text of this agreement is set out in Australian Treaty Series 1992 No. 18 (\\[1992\\] ATS 18).\n\n> Icelandic convention means:\n\n (a) the Convention between Australia and Iceland for the elimination of double taxation with respect to taxes on income and the prevention of tax evasion and avoidance; and\n (b) the protocol to that convention;\n each done at Reykjavik on 12 October 2022.\n\n> Note: The text of this convention and protocol could in 2023 be viewed on the Department’s website (http://www.treasury.gov.au).\n\n> 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.\n\n> Note: The text of this agreement is set out in Australian Treaty Series 1991 No. 49 (\\[1991\\] ATS 49).\n\n> Indian protocol (No. 1) means the protocol, done at New Delhi on 16 December 2011, amending the Indian agreement.\n\n> Note: The text of this protocol is set out in Australian Treaty Series 2013 No. 22 (\\[2013\\] ATS 22).\n\n> Indonesian agreement means the Agreement between the Government of Australia and the Government of the Republic of 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.\n\n> Note: The text of this agreement is set out in Australian Treaty Series 1992 No. 40 (\\[1992\\] ATS 40).\n\n> 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.\n\n> Note 1: The text of this agreement is set out in Australian Treaty Series 1983 No. 25 (\\[1983\\] ATS 25).\n\n> Note 2: Section 11K gives this agreement the force of law.\n\n> 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.\n\n> Note: The text of this agreement is set out in Australian Treaty Series 2010 No. 2 (\\[2010\\] ATS 2).\n\n> Israeli convention means:\n\n (a) the Convention between the Government of Australia and the Government of the State of Israel for the elimination of double taxation with respect to taxes on income and the prevention of tax evasion and avoidance; and\n (b) the protocol to that convention;\n each done at Canberra on 28 March 2019.\n\n> Note: The text of this convention and protocol is set out in Australian Treaty Series 2019 No. 20 (\\[2019\\] ATS 20).\n\n> 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.\n\n> Note: The text of this agreement is set out in Australian Treaty Series 1976 No. 7 (\\[1976\\] ATS 7).\n\n> Italian convention means:\n\n (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\n (b) the protocol to that convention;\n each done at Canberra on 14 December 1982.\n\n> Note 1: The text of this convention and protocol is set out in Australian Treaty Series 1985 No. 27 (\\[1985\\] ATS 27).\n\n> Note 2: Section 10A gives this convention and protocol the force of law.\n\n> Japanese convention means:\n\n (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\n (b) the protocol to that convention; and\n (c) the exchange of notes relating to that convention;\n each done at Tokyo on 31 January 2008.\n\n> Note: The text of this convention and protocol, and these notes, is set out in Australian Treaty Series 2008 No. 21 (\\[2008\\] ATS 21).\n\n> 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.\n\n> Note: The text of this agreement is set out in Australian Treaty Series 2012 No. 6 (\\[2012\\] ATS 6).\n\n> 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.\n\n> Note: The text of this agreement is set out in Australian Treaty Series 1991 No. 34 (\\[1991\\] ATS 34).\n\n> Korean convention means:\n\n (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\n (b) the protocol to that convention;\n each done at Canberra on 12 July 1982.\n\n> Note 1: The text of this convention and protocol is set out in Australian Treaty Series 1984 No. 2 (\\[1984\\] ATS 2).\n\n> Note 2: Section 11L gives this convention and protocol the force of law.\n\n> 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.\n\n> Note 1: The text of this agreement is set out in Australian Treaty Series 1981 No. 15 (\\[1981\\] ATS 15).\n\n> Note 2: Section 11F gives this agreement the force of law.\n\n> 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).\n\n> Malaysian protocol (No. 1) means the protocol, done at Sydney on 2 August 1999, amending the Malaysian agreement.\n\n> Note: The text of this protocol is set out in Australian Treaty Series 2000 No. 25 (\\[2000\\] ATS 25).\n\n> Malaysian protocol (No. 2) means:\n\n (a) the protocol amending the Malaysian agreement (as amended by the Malaysian protocol (No. 1)); and\n (b) the exchange of letters relating to that protocol;\n each done at Genting Highlands on 28 July 2002.\n\n> Note: The text of this protocol and these letters is set out in Australian Treaty Series 2004 No. 1 (\\[2004\\] ATS 1).\n\n> 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.\n\n> Note: The text of this protocol is set out in Australian Treaty Series 2011 No. 27 (\\[2011\\] ATS 27).\n\n> 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.\n\n> Note 1: The text of this agreement is set out in Australian Treaty Series 1985 No. 15 (\\[1985\\] ATS 15).\n\n> Note 2: Section 11N gives this agreement the force of law.\n\n> Marshall Islands agreement means the Agreement between the Government of Australia and the Government of the Republic of the Marshall Islands 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 Majuro on 12 May 2010.\n\n> Note: In 2023, the text of this agreement was accessible through the Australian Treaties Library on the AustLII website (www.austlii.edu.au).\n\n> Mauritius agreement means the Agreement between the Government of Australia and the Government of the Republic of Mauritius 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 Port Louis on 8 December 2010.\n\n> Note: The text of this agreement is set out in Australian Treaty Series 2013 No. 18 (\\[2013\\] ATS 18).\n\n> Mexican agreement means:\n\n (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\n (b) the protocol to that agreement;\n each done at Mexico City on 9 September 2002.\n\n> Note: The text of this agreement and protocol is set out in Australian Treaty Series 2004 No. 4 (\\[2004\\] ATS 4).\n\n> Multilateral Convention means the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting done at Paris on 7 June 2017.\n\n> Note: The text of this convention is set out in Australian Treaty Series 2019 No. 1 (\\[2019\\] ATS 1).\n\n> Netherlands agreement means:\n\n (a) the Agreement between Australia and the Kingdom of the Netherlands for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income; and\n (b) the protocol to that agreement;\n each done at Canberra on 17 March 1976.\n\n> Note: The text of this agreement and protocol is set out in Australian Treaty Series 1976 No. 24 (\\[1976\\] ATS 24).\n\n> Netherlands protocol (No. 2) means the protocol, done at Canberra on 30 June 1986, amending the Netherlands agreement.\n\n> Note: The text of this protocol is set out in Australian Treaty Series 1987 No. 22 (\\[1987\\] ATS 22).\n\n> 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.\n\n> Note: The text of this convention is set out in Australian Treaty Series 2010 No. 10 (\\[2010\\] ATS 10).\n\n> 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.\n\n> Note: The text of this convention is set out in Australian Treaty Series 2007 No. 32 (\\[2007\\] ATS 32).\n\n> 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.\n\n> Note: The text of this agreement is set out in Australian Treaty Series 1989 No. 37 (\\[1989\\] ATS 37).\n\n> 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.\n\n> Note 1: The text of this agreement is set out in Australian Treaty Series 1980 No. 16 (\\[1980\\] ATS 16).\n\n> Note 2: Section 11D gives this agreement the force of law.\n\n> 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.\n\n> Note: The text of this agreement is set out in Australian Treaty Series 1992 No. 14 (\\[1992\\] ATS 14).\n\n> Romanian agreement means:\n\n (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\n (b) the protocol to that agreement;\n each done at Canberra on 2 February 2000.\n\n> Note: The text of this agreement and protocol is set out in Australian Treaty Series 2001 No. 4 (\\[2001\\] ATS 4).\n\n> Russian agreement means:\n\n (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\n (b) the protocol to that agreement;\n each done at Canberra on 7 September 2000.\n\n> Note: The text of this agreement and protocol is set out in Australian Treaty Series 2003 No. 23 (\\[2003\\] ATS 23).\n\n> 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.\n\n> Note: In 2023, the text of this agreement was accessible through the Australian Treaties Library on the AustLII website (www.austlii.edu.au).\n\n> 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.\n\n> Note 1: The text of this agreement is set out in Australian Treaty Series 1969 No. 14 (\\[1969\\] ATS 14).\n\n> Note 2: Section 7 gives this agreement the force of law.\n\n> 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.\n\n> Singaporean protocol (No. 1) means the protocol, done at Canberra on 16 October 1989, amending the Singaporean agreement.\n\n> Note: The text of this protocol is set out in Australian Treaty Series 1990 No. 3 (\\[1990\\] ATS 3).\n\n> 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)).\n\n> Note: The text of this protocol is set out in Australian Treaty Series 2010 No. 26 (\\[2010\\] ATS 26).\n\n> 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.\n\n> Note: The text of this agreement is set out in Australian Treaty Series 1999 No. 35 (\\[1999\\] ATS 35).\n\n> South African agreement means:\n\n (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\n (b) the protocol to that agreement;\n each done at Canberra on 1 July 1999.\n\n> Note: The text of this agreement and protocol is set out in Australian Treaty Series 1999 No. 34 (\\[1999\\] ATS 34).\n\n> South African protocol (No. 2) means the protocol, done at Pretoria on 31 March 2008, amending the South African agreement.\n\n> Note: The text of this protocol is set out in Australian Treaty Series 2008 No. 18 (\\[2008\\] ATS 18).\n\n> Spanish agreement means:\n\n (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\n (b) the protocol to that agreement;\n each done at Canberra on 24 March 1992.\n\n> Note: The text of this agreement and protocol is set out in Australian Treaty Series 1992 No. 41 (\\[1992\\] ATS 41).\n\n> Sri Lankan agreement means the Agreement between Australia and the Democratic Socialist Republic of Sri Lanka for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, done at Canberra on 18 December 1989.\n\n> Note: The text of this agreement is set out in Australian Treaty Series 1991 No. 42 (\\[1991\\] ATS 42).\n\n> 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.\n\n> Note 1: The text of this agreement is set out in Australian Treaty Series 1981 No. 18 (\\[1981\\] ATS 18).\n\n> Note 2: Section 11G gives this agreement the force of law.\n\n> Swiss convention means:\n\n (a) the Convention between Australia and the Swiss Confederation for the Avoidance of Double Taxation with respect to Taxes on Income; and\n (b) the protocol to that convention;\n each done at Sydney on 30 July 2013.\n\n> Note: The text of this convention and protocol is set out in Australian Treaty Series 2014 No. 33 (\\[2014\\] ATS 33).\n\n> Taipei agreement means:\n\n (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\n (b) the annex to that agreement;\n each done at Canberra on 29 May 1996. A copy of this agreement and annex is set out in Schedule 1.\n\n> 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.\n\n> Note: The text of this agreement is set out in Australian Treaty Series 1989 No. 36 (\\[1989\\] ATS 36).\n\n> Turkish convention means:\n\n (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\n (b) the protocol to that convention;\n each done at Ankara on 28 April 2010.\n\n> Note: The text of this convention and protocol is set out in Australian Treaty Series 2013 No. 19 (\\[2013\\] ATS 19).\n\n> United Kingdom convention means:\n\n (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\n (b) the exchange of notes relating to that convention;\n each done at Canberra on 21 August 2003.\n\n> Note: The text of this convention and notes is set out in Australian Treaty Series 2003 No. 22 (\\[2003\\] ATS 22).\n\n> 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.\n\n> Note: The text of this convention is set out in Australian Treaty Series 1983 No. 16 (\\[1983\\] ATS 16).\n\n> United States protocol (No. 1) means the protocol, done at Canberra on 27 September 2001, amending the United States convention.\n\n> Note: The text of this protocol is set out in Australian Treaty Series 2003 No. 14 (\\[2003\\] ATS 14).\n\n> 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.\n\n> Note 1: The text of this agreement is set out in Australian Treaty Series 1992 No. 44 (\\[1992\\] ATS 44).\n\n> 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).\n\n> Vietnamese notes (No. 1) means the exchange of notes, done at Canberra on 22 November 1996, amending the Vietnamese agreement.\n\n> Note: The text of these notes is set out in Australian Treaty Series 1997 No. 20 (\\[1997\\] ATS 20).\n\n (2) For the purposes of this Act, when construing the English language text of the French convention:\n (a) words in the singular include the plural; and\n (b) words in the plural include the singular;\n unless the contrary intention appears.","sortOrder":3},{"sectionNumber":"3AAB","sectionType":"section","heading":"Definitions—agreements for earlier periods","content":"#### 3AAB Definitions—agreements for earlier periods\n\n (1) In this Act:\n\n> 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.\n\n> Note: The text of this agreement is set out in Australian Treaty Series 1958 No. 12 (\\[1958\\] ATS 12).\n\n> Finnish 1984 agreement means:\n\n (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\n (b) the protocol to that agreement;\n each done at Canberra on 12 September 1984.\n\n> Note: The text of this agreement and protocol is set out in Australian Treaty Series 1986 No. 6 (\\[1986\\] ATS 6).\n\n> Finnish 1997 protocol means the protocol, done at Canberra on 5 November 1997, amending the Finnish 1984 agreement.\n\n> Note: The text of this protocol is set out in Australian Treaty Series 2000 No. 24 (\\[2000\\] ATS 24).\n\n> 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.\n\n> Note: The text of this agreement is set out in Australian Treaty Series 1970 No. 13 (\\[1970\\] ATS 13).\n\n> French 1976 agreement means the Agreement between the Government of Australia and the Government of the French 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.\n\n> Note 1: The text of this agreement is set out in Australian Treaty Series 1977 No. 21 (\\[1977\\] ATS 21).\n\n> Note 2: Subsection (2) applies to this agreement.\n\n> French 1989 protocol means the protocol, done at Paris on 19 June 1989, amending the French 1976 agreement.\n\n> Note: The text of this protocol is set out in Australian Treaty Series 1990 No. 26 (\\[1990\\] ATS 26).\n\n> German 1972 agreement means:\n\n (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\n (b) the protocol to that agreement;\n each done at Melbourne on 24 November 1972.\n\n> Note 1: The text of this agreement and protocol is set out in Australian Treaty Series 1975 No. 8 (\\[1975\\] ATS 8).\n\n> Note 2: Section 11 continues to give this agreement and protocol the force of law in respect of certain income.\n\n> Japanese 1969 agreement means:\n\n (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\n (b) the protocol to that agreement;\n each done at Canberra on 20 March 1969.\n\n> Note 1: The text of this agreement and protocol is set out in Australian Treaty Series 1970 No. 9 (\\[1970\\] ATS 9).\n\n> Note 2: Subsections (2) and (3) apply to this agreement and protocol.\n\n> 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.\n\n> Note: The text of this agreement is set out in Australian Treaty Series 1960 No. 6 (\\[1960\\] ATS 6).\n\n> 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.\n\n> Note: The text of this agreement is set out in Australian Treaty Series 1973 No. 11 (\\[1973\\] ATS 11).\n\n> 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 evasion with respect to taxes on income, done at Melbourne on 27 January 1995.\n\n> Note: The text of this agreement is set out in Australian Treaty Series 1997 No. 23 (\\[1997\\] ATS 23).\n\n> New Zealand 2005 protocol means the protocol, done at Melbourne on 15 November 2005, amending the New Zealand 1995 agreement.\n\n> Note: The text of this protocol is set out in Australian Treaty Series 2007 No. 5 (\\[2007\\] ATS 5).\n\n> Norwegian 1982 convention means:\n\n (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\n (b) the protocol to that convention;\n each done at Canberra on 6 May 1982.\n\n> Note: The text of this convention and protocol is set out in Australian Treaty Series 1983 No. 19 (\\[1983\\] ATS 19).\n\n> Swiss 1980 agreement means:\n\n (a) the Agreement between Australia and Switzerland for the avoidance of double taxation with respect to taxes on income; and\n (b) the protocol to that agreement;\n each done at Canberra on 28 February 1980.\n\n> Note 1: The text of this agreement and protocol is set out in Australian Treaty Series 1981 No. 5 (\\[1981\\] ATS 5).\n\n> Note 2: Section 11E continues to give this agreement and protocol the force of law in respect of certain income.\n\n> 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.\n\n> Note: The text of this agreement is set out in Australian Treaty Series 1947 No. 18 (\\[1947\\] ATS 18).\n\n> 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.\n\n> Note: The text of this agreement is set out in Australian Treaty Series 1968 No. 9 (\\[1968\\] ATS 9).\n\n> United Kingdom 1980 protocol means the protocol, done at Canberra on 29 January 1980, amending the United Kingdom 1967 agreement.\n\n> Note: The text of this protocol is set out in Australian Treaty Series 1980 No. 22 (\\[1980\\] ATS 22).\n\n> 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.\n\n> Note: The text of this convention is set out in Australian Treaty Series 1953 No. 4 (\\[1953\\] ATS 4).\n\n (2) For the purposes of this Act, when construing the English language texts of the French 1976 agreement and the Japanese 1969 agreement:\n (a) words in the singular include the plural; and\n (b) words in the plural include the singular;\n unless the contrary intention appears.\n (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.","sortOrder":4},{"sectionNumber":"3AA","sectionType":"section","heading":"Source of income from funds management activities","content":"#### 3AA Source of income from funds management activities\n\n (1) This section applies to a beneficiary of a widely held unit trust if:\n (a) the beneficiary is a resident of a country (other than Australia) for the purposes of an agreement that is given the force of law under this Act; and\n (b) the beneficiary is presently entitled, either:\n (i) directly; or\n (ii) indirectly through fixed entitlements in one or more interposed trust estates (whether widely held unit trusts or not);\n to a share of the income of the widely held unit trust derived from the carrying on by the trustee in Australia of funds management activities through a permanent establishment in Australia (the funds management income).\n (2) In working out for the purposes of the Assessment Act whether the funds management income of the beneficiary is attributable to sources in Australia, these provisions (the source of income provisions) do not apply:\n (a) Article 21 of the United Kingdom convention;\n (b) a corresponding provision of another agreement;\n (c) subsections 11(2), 11S(2) and 11ZF(2) of this Act, and any provision of this Act of similar effect enacted after the commencement of this section;\n (d) section 764‑5 of the Income Tax Assessment Act 1997.\n (3) However, the source of income provisions do apply to the extent to which the income derived from the carrying on by the trustee of funds management activities is adjusted under:\n (a) Article 7(2) or 9(1) of the United Kingdom convention; or\n (b) a corresponding provision of another agreement.\n (4) In this section:\n\n> closely held has the meaning given by section 272‑105 in Schedule 2F to the Income Tax Assessment Act 1936.\n\n> funds management activities means activities carried on by:\n\n (a) a managed investment scheme (as defined by section 9 of the Corporations Act 2001) that is a widely held unit trust; or\n (b) a managed investment scheme (as so defined) that is a unit trust that is closely held by one or more of these:\n (i) a managed investment scheme (as so defined) that is a widely held unit trust;\n (ii) a complying superannuation entity;\n (iii) a life insurance company.\n\n> permanent establishment, in relation to an agreement, has the same meaning as in the agreement.\n\n> widely held unit trust has the meaning given by section 272‑105 in Schedule 2F to the Income Tax Assessment Act 1936.","sortOrder":5},{"sectionNumber":"3A","sectionType":"section","heading":"Alienation of real property through interposed entities","content":"#### 3A Alienation of real property through interposed entities\n\n (1) This section applies if:\n (a) an agreement makes provision in relation to income, profits or gains from the alienation or disposition of shares or comparable interests in companies, or of interests in other entities, whose assets consist wholly or principally of real property (within the meaning of the agreement) or other interests in relation to land; and\n (b) this Act gave that provision the force of law before 27 April 1998.\n (2) For the purposes of this Act, that provision is taken to extend to the alienation or disposition of shares or any other interests in companies, and in any other entities, the value of whose assets is wholly or principally attributable, whether directly, or indirectly through one or more interposed companies or other entities, to such real property or interests.\n (3) However, subsection (2) applies only if the real property or land concerned is situated in Australia (within the meaning of the relevant agreement).\n (4) If, after the commencement of this section, this Act is amended so as to give the force of law to an amendment or substitution of a provision mentioned in subsection (1), this section ceases to apply to that provision from the time that the amendment of the Act takes effect.\n (5) In this section:\n\n> entity has the same meaning as in the Income Tax Assessment Act 1997, but does not include an individual in his or her personal capacity.","sortOrder":6},{"sectionNumber":"4","sectionType":"section","heading":"Incorporation of Assessment Act","content":"#### 4 Incorporation of Assessment Act\n\n (1) Subject to subsection (2), the Assessment Act is incorporated and shall be read as one with this Act.\n\n> Note: An effect of this provision is that people who acquire information under this Act are subject to the confidentiality obligations and exceptions in Division 355 in Schedule 1 to the Taxation Administration Act 1953.\n\n (2) The provisions of this Act have effect notwithstanding anything inconsistent with those provisions contained in the Assessment Act (other than the provisions covered by subsection (3)) or in an Act imposing Australian tax.\n (3) This subsection covers the following provisions:\n (a) Part IVA of the Income Tax Assessment Act 1936;\n (b) Subdivision 195‑C (Corporate collective investment vehicles) of the Income Tax Assessment Act 1997;\n (c) subsection 770‑10(6) and section 770‑145 (about foreign GloBE tax) of the Income Tax Assessment Act 1997.","sortOrder":7},{"sectionNumber":"4AA","sectionType":"section","heading":"Incorporation of Fringe Benefits Tax Assessment Act","content":"#### 4AA Incorporation of Fringe Benefits Tax Assessment Act\n\n (1) Subject to subsection (2), the Fringe Benefits Tax Assessment Act 1986 is incorporated and is to be read as one with this Act.\n (2) The provisions of this Act have effect in spite of anything inconsistent with those provisions contained in the Fringe Benefits Tax Assessment Act 1986 (other than section 67 of that Act).","sortOrder":8},{"sectionNumber":"4A","sectionType":"section","heading":"Treasurer to notify entry into force of agreements, exchanges of letters under agreements etc.","content":"#### 4A Treasurer to notify entry into force of agreements, exchanges of letters under agreements etc.\n\n (1) This section applies to the following events:\n (a) the entry into force of an agreement;\n (b) the giving of notice of termination of an agreement;\n (c) the exchange of letters under a provision of an agreement;\n (d) the exchange of instruments of ratification under an agreement;\n (e) the confirmation of receipt of a notice under a provision of an agreement;\n (f) the occurrence of any similar thing.\n (2) As soon as practicable after any such event occurs, the Treasurer must, by notifiable instrument, publish particulars of the event.","sortOrder":9},{"sectionNumber":"5","sectionType":"section","heading":"Current agreements have the force of law","content":"#### 5 Current agreements have the force of law\n\n (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.\n\n> Note 1: The table also lists some provisions of this Act that relate to the agreement.\n\n> Note 2: Some current agreements are given the force of law by other provisions of this Act.\n\n```html\n

Current agreements

Agreement

Related provisions

Argentine agreement

section 11ZI

Aruban agreement

nil

Belgian protocol (No. 1)

section 11C

Belgian protocol (No. 2)

section 11C

British Virgin Islands agreement

nil

Canadian protocol (No. 1)

section 6A

Chilean convention

nil

Chinese agreement

section 11S

Cook Islands agreement

nil

Czech agreement

nil

Fijian agreement

nil

Finnish agreement

nil

French convention

nil

German agreement

nil

Greek airline profits agreement

nil

Guernsey agreement

nil

Hungarian agreement

nil

Icelandic convention

nil

Indian agreement

section 11J

Indian protocol (No. 1)

section 11J

Indonesian agreement

nil

Isle of Man agreement

nil

Israeli convention

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

Malaysian protocol (No. 3)

section 11F

Marshall Islands agreement

nil

Mauritius agreement

nil

Mexican agreement

nil

Multilateral Convention

nil

Netherlands agreement

section 11A

Netherlands protocol (No. 2)

section 11A

New Zealand convention

section 6B

Norwegian convention

nil

Papua New Guinea agreement

nil

Polish agreement

section 11ZA

Romanian agreement

nil

Russian agreement

nil

Samoan agreement

nil

Singaporean protocol (No. 1)

section 7

Singaporean protocol (No. 2)

section 7

Slovak agreement

nil

South African agreement

nil

South African protocol (No. 2)

nil

Spanish agreement

nil

Sri Lankan agreement

nil

Swiss convention

nil

Taipei agreement

section 11ZF

Thai agreement

nil

Turkish convention

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

\n```\n\n (2) Subsection (1) does not apply to Article 23 of the United States convention (as amended by the United States protocol (No. 1)).\n (3) The operation of a provision of an agreement provided for by subsection (1) is subject to anything inconsistent with the provision contained in a law of the Commonwealth, or of a State or Territory, that imposes a tax other than Australian tax, unless expressly provided otherwise in that law.\n (4) Subsection (3) does not apply in relation to the operation of a provision of an agreement, to the extent that it is inconsistent with a provision contained in a law of the Commonwealth, or of a State or Territory, if:\n (a) either:\n (i) the provision of the agreement is specified in a determination under subsection (5); or\n (ii) the provision of the agreement corresponds with a provision of an agreement that is specified in a determination under subsection (5); and\n (b) the provision contained in a law of the Commonwealth, or of a State or Territory is specified in a determination under subsection (5).\n (5) For the purposes of subsection (4), the Minister may, by legislative instrument, make a determination specifying:\n (a) a provision of an agreement; and\n (b) a provision contained in a law of the Commonwealth, or of a State or Territory.","sortOrder":10},{"sectionNumber":"5A","sectionType":"section","heading":"Earlier agreements continue to have the force of law","content":"#### 5A Earlier agreements continue to have the force of law\n\n 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.\n\n> Note: Some earlier agreements continue to have the force of law by other provisions of this Act.\n\n| Agreement |\n| ------------------------------------- |\n| Canadian 1957 agreement |\n| Finnish 1984 agreement |\n| Finnish 1997 protocol |\n| French 1969 airline profits agreement |\n| French 1976 agreement |\n| French 1989 protocol |\n| Japanese 1969 agreement |\n| New Zealand 1960 agreement |\n| New Zealand 1972 agreement |\n| New Zealand 1995 agreement |\n| New Zealand 2005 protocol |\n| Norwegian 1982 convention |\n| United Kingdom 1946 agreement |\n| United Kingdom 1967 agreement |\n| United Kingdom 1980 protocol |\n| United States 1953 convention |","sortOrder":11},{"sectionNumber":"6","sectionType":"section","heading":"Convention with United States of America","content":"#### 6 Convention with United States of America\n\n The United States convention (as amended by the United States protocol (No. 1)) does not subject to Australian tax any interest paid by a resident of Australia to a resident of the United States of America that, apart from that convention, would not be subject to Australian tax.","sortOrder":12},{"sectionNumber":"6A","sectionType":"section","heading":"Convention with Canada","content":"#### 6A Convention with Canada\n\n Subject to this Act, on and after the date of entry into force of the Canadian convention, the provisions of the convention, so far as those provisions affect Australian tax, have, and shall be deemed to have had, the force of law:\n (a) in relation to withholding tax—in respect of dividends or interest derived on or after 1 July 1975 and in relation to which the convention remains effective; and\n (b) in relation to tax other than withholding tax—in respect of income of any year of income commencing on or after 1 July 1975 and in relation to which the convention remains effective.","sortOrder":13},{"sectionNumber":"6B","sectionType":"section","heading":"Convention with New Zealand","content":"#### 6B Convention with New Zealand\n\n (1) This section applies in relation to:\n (a) income described in paragraph 3 of Article 17 of the New Zealand convention, derived in respect of personal activities exercised by a sportsperson; and\n (b) income derived by an individual covered by subsection (4) in respect of a sportsperson, if that income is derived from providing services mentioned in paragraph (4)(a) to:\n (i) the sportsperson in deriving income mentioned in paragraph (a); or\n (ii) a recognised team regularly playing in a league competition (as described in paragraph 3 of Article 17 of the New Zealand convention) of which the sportsperson is a member.\n (2) Subsection (3) applies in determining whether an individual was present in Australia on a particular day, for the purposes of determining whether the condition in subparagraph 2(a) of Article 14 of the New Zealand convention was met in relation to:\n (a) the 2020‑21 year of income; or\n (b) the 2021‑22 year of income.\n (3) Treat the individual as not being present in Australia on that day if it was impractical, because of measures or arrangements related to the coronavirus known as COVID‑19, for the individual to leave Australia on that day and continue to:\n (a) exercise the personal activities mentioned in paragraph (1)(a); or\n (b) provide the services mentioned in paragraph (1)(b).\n (4) This subsection covers, in respect of a sportsperson, an individual who:\n (a) provides any of the following services to the sportsperson or to a recognised team of which the sportsperson is a member:\n (i) services as a manager, coach, trainer, runner, physician or physiotherapist;\n (ii) advertising or promotional services;\n (iii) any other similar services; and\n (b) is employed by a person that:\n (i) employs the sportsperson; or\n (ii) if a body corporate employs the sportsperson—is a related body corporate (within the meaning of the Corporations Act 2001) of that body corporate.\n (5) In this section:\n\n> recognised team has the same meaning as in paragraph 3 of Article 17 of the New Zealand convention.\n\n> sportsperson has the same meaning as in paragraph 3 of Article 17 of the New Zealand convention.","sortOrder":14},{"sectionNumber":"7","sectionType":"section","heading":"Agreement with Singapore","content":"#### 7 Agreement with Singapore\n\n Subject to this Act, the provisions of the Singaporean agreement, so far as those provisions affect Australian tax, have the force of law:\n (a) in relation to withholding tax—in respect of dividends or interest derived on or after 1 July 1969, and in relation to which the agreement remains effective; and\n (b) in relation to tax other than withholding tax—in respect of income of the year of income that commences on 1 July 1969, or of a subsequent year of income in relation to which the agreement remains effective.","sortOrder":15},{"sectionNumber":"10A","sectionType":"section","heading":"Convention with Italy","content":"#### 10A Convention with Italy\n\n Subject to this Act, on and after the date of entry into force of the Italian convention, the provisions of the convention, so far as those provisions affect Australian tax, have, and shall be deemed to have had, the force of law:\n (a) in relation to withholding tax—in respect of dividends or interest derived on or after 1 July 1976 and in relation to which the convention remains effective; and\n (b) in relation to tax other than withholding tax—in respect of income of any year of income commencing on or after 1 July 1976 and in relation to which the convention remains effective.","sortOrder":16},{"sectionNumber":"11","sectionType":"section","heading":"Earlier agreement with Germany","content":"#### 11 Earlier agreement with Germany\n\n (1) Subject to this Act, the provisions of the German 1972 agreement, so far as those provisions affect Australian tax, continue to have the force of law:\n (a) in relation to withholding tax—in respect of dividends or interest derived on or after 1 July 1971 and in relation to which the agreement remains effective; and\n (b) in relation to tax other than withholding tax—in respect of income of the year of income that commenced on 1 July 1971 and of a subsequent year of income in relation to which the agreement remains effective.\n (2) For the purposes of the Assessment Act, income that:\n (a) is derived by a person who is a resident of the Federal Republic of Germany for the purposes of the German 1972 agreement; and\n (b) is income in relation to which the agreement remains effective; and\n (c) is income that, under Articles 6 to 8 and 10 to 16 of the agreement, may be taxed in Australia;\n is taken to be derived from sources in Australia.","sortOrder":17},{"sectionNumber":"11A","sectionType":"section","heading":"Agreement with the Netherlands","content":"#### 11A Agreement with the Netherlands\n\n For the purposes of the Assessment Act, income from a lease of land, income from any other direct interest in or over land, whether or not improved, and income from debt‑claims of every kind, excluding bonds or debentures, secured by mortgage of real property or of any other direct interest in or over land, being income that under Article 6 of the Netherlands agreement (as amended by the Netherlands protocol (No. 2)) is to be regarded as income from real property, shall be deemed to be derived from sources in the place in which the land to which the lease, other direct interest or mortgage relates is situated.","sortOrder":18},{"sectionNumber":"11C","sectionType":"section","heading":"Agreement with Belgium","content":"#### 11C Agreement with Belgium\n\n Subject to this Act, on and after the date of entry into force of the Belgian agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have the force of law:\n (a) in relation to withholding tax—in respect of dividends or interest derived on or after 1 January in the calendar year immediately following that in which the agreement enters into force and in relation to which the agreement remains effective; and\n (b) in relation to tax other than withholding tax—in respect of income of any year of income commencing on or after 1 July in the calendar year immediately following that in which the agreement enters into force and in relation to which the agreement remains effective.","sortOrder":19},{"sectionNumber":"11D","sectionType":"section","heading":"Agreement with the Philippines","content":"#### 11D Agreement with the Philippines\n\n Subject to this Act, on and after the date of entry into force of the Philippine agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have, and shall be deemed to have had, the force of law:\n (a) in relation to withholding tax—in respect of dividends or interest derived on or after 1 January in the calendar year in which the agreement enters into force and in relation to which the agreement remains effective; and\n (b) in relation to tax other than withholding tax—in respect of income of any year of income commencing on or after 1 July in the calendar year in which the agreement enters into force and in relation to which the agreement remains effective.","sortOrder":20},{"sectionNumber":"11E","sectionType":"section","heading":"Earlier agreement with Switzerland","content":"#### 11E Earlier agreement with Switzerland\n\n Subject to this Act, the provisions of the Swiss 1980 agreement, so far as those provisions affect Australian tax, continue to have the force of law:\n (a) in relation to withholding tax—in respect of dividends or interest derived on or after 1 January 1979 and in relation to which the agreement remains effective; and\n (b) in relation to tax other than withholding tax—in respect of income of the year of income that commenced on 1 July 1979 and of a subsequent year of income in relation to which the agreement remains effective.","sortOrder":21},{"sectionNumber":"11F","sectionType":"section","heading":"Agreement with Malaysia","content":"#### 11F Agreement with Malaysia\n\n (1) Subject to this Act, on and after the date of entry into force of the Malaysian agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have, and shall be deemed to have had, the force of law:\n (a) in relation to withholding tax—in respect of dividends or interest derived on or after 1 July 1979 and in relation to which the agreement remains effective; and\n (b) in relation to tax other than withholding tax—in respect of income of any year of income that commenced on or after 1 July 1979 and in relation to which the agreement remains effective.\n (2) The Malaysian agreement, as amended by:\n (a) the Malaysian protocol (No. 1); and\n (b) the Malaysian protocol (No. 2); and\n (c) the Malaysian protocol (No. 3);\n 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.","sortOrder":22},{"sectionNumber":"11FA","sectionType":"section","heading":"First protocol with Malaysia","content":"#### 11FA First protocol with Malaysia\n\n (2) Nothing in section 170 of the Income Tax Assessment Act 1936 prevents the amendment of an assessment made before the commencement of this section for the purpose of giving effect to the Malaysian protocol (No. 1).\n (3) Nothing in former Division 19 of Part III of the Income Tax Assessment Act 1936 prevents the amendment of a determination made, or taken to have been made, under that Division before the commencement of this section for the purpose of giving effect to the Malaysian protocol (No. 1).","sortOrder":23},{"sectionNumber":"11FB","sectionType":"section","heading":"Second protocol with Malaysia","content":"#### 11FB Second protocol with Malaysia\n\n (2) Nothing in section 170 of the Income Tax Assessment Act 1936 prevents the amendment of an assessment made before the commencement of this section for the purpose of giving effect to the Malaysian protocol (No. 2).\n (3) Nothing in former Division 19 of Part III of the Income Tax Assessment Act 1936 prevents the amendment of a determination made, or taken to have been made, under that Division before the commencement of this section for the purpose of giving effect to the Malaysian protocol (No. 2).","sortOrder":24},{"sectionNumber":"11G","sectionType":"section","heading":"Agreement with Sweden","content":"#### 11G Agreement with Sweden\n\n Subject to this Act, on and after the date of entry into force of the Swedish agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have the force of law:\n (a) in relation to withholding tax—in respect of dividends or interest derived on or after 1 January in the calendar year immediately following that in which the agreement enters into force and in relation to which the agreement remains effective; and\n (b) in relation to tax other than withholding tax—in respect of income of any year of income commencing on or after 1 July in the calendar year immediately following that in which the agreement enters into force and in relation to which the agreement remains effective.","sortOrder":25},{"sectionNumber":"11H","sectionType":"section","heading":"Agreement with Denmark","content":"#### 11H Agreement with Denmark\n\n (1) Subject to this Act, on and after the date of entry into force of the Danish agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have the force of law:\n (a) in relation to withholding tax—in respect of dividends or interest derived on or after 1 January in the calendar year immediately following that in which the agreement enters into force and in relation to which the agreement remains effective; and\n (b) in relation to tax other than withholding tax—in respect of income of any year of income commencing on or after 1 July in the calendar year immediately following that in which the agreement enters into force and in relation to which the agreement remains effective.\n (3) Where an amount of tax credit is to be treated as assessable income of a taxpayer in accordance with paragraph (7) of Article 10 of the Danish agreement:\n (a) the amount of the tax credit shall be included in the assessable income of the taxpayer of the year of income in which the dividend to which the tax credit relates is paid; and\n (b) the amount of the tax credit shall be added to the amount of the dividend to which the tax credit relates and the sum of the two amounts shall be deemed to be one dividend for the purposes of this Act and the Assessment Act.","sortOrder":26},{"sectionNumber":"11J","sectionType":"section","heading":"Agreement with India","content":"#### 11J Agreement with India\n\n The Indian agreement (as amended by the Indian protocol (No. 1)) does not have the effect of subjecting to Australian tax any payments or credits, whether periodical or not, and however described or computed, to the extent to which they:\n (a) are made as consideration for the rendering of any services covered by paragraph 12(3)(g) of that agreement (as amended); and\n (b) are not royalties (within the meaning of the Income Tax Assessment Act 1936); and\n (c) would, apart from paragraph 12(3)(g) and Article 23 of that agreement (as amended), not be subject to Australian tax.\n\n> Note: This section does not prevent payments or credits from being subjected to Australian tax because of another provision of that agreement. For example, because of Articles 7 and 23 of that agreement.","sortOrder":27},{"sectionNumber":"11K","sectionType":"section","heading":"Agreement with Ireland","content":"#### 11K Agreement with Ireland\n\n Subject to this Act, on and after the date of entry into force of the Irish agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have the force of law:\n (a) in relation to withholding tax—in respect of dividends or interest derived on or after 1 July in the calendar year immediately following that in which the agreement enters into force and in relation to which the agreement remains effective; and\n (b) in relation to tax other than withholding tax—in respect of income of any year of income commencing on or after 1 July in the calendar year immediately following that in which the agreement enters into force and in relation to which the agreement remains effective.","sortOrder":28},{"sectionNumber":"11L","sectionType":"section","heading":"Convention with Korea","content":"#### 11L Convention with Korea\n\n Subject to this Act, on and after the date of entry into force of the Korean convention, the provisions of the convention, so far as those provisions affect Australian tax, have, and shall be deemed to have had, the force of law:\n (a) in relation to withholding tax—in respect of dividends or interest derived on or after 1 January 1982 and in relation to which the convention remains effective; and\n (b) in relation to tax other than withholding tax—in respect of income of any year of income commencing on or after 1 July 1982 and in relation to which the convention remains effective.","sortOrder":29},{"sectionNumber":"11N","sectionType":"section","heading":"Agreement with Malta","content":"#### 11N Agreement with Malta\n\n Subject to this Act, on and after the date of entry into force of the Maltese agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have the force of law:\n (a) in relation to withholding tax—in respect of dividends or interest derived on or after 1 January in the calendar year next following that in which the agreement enters into force and in relation to which the agreement remains effective; and\n (b) in relation to tax other than withholding tax—in respect of income of any year of income commencing on or after 1 July in the calendar year next following that in which the agreement enters into force and in relation to which the agreement remains effective.","sortOrder":30},{"sectionNumber":"11Q","sectionType":"section","heading":"Airline profits agreement with China","content":"#### 11Q Airline profits agreement with China\n\n Subject to this Act, on and after the date of entry into force of the Chinese airline profits agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have, and shall be deemed to have had, the force of law in relation to tax in respect of income derived on or after 1 July 1984 and in relation to which the agreement remains effective.","sortOrder":31},{"sectionNumber":"11R","sectionType":"section","heading":"Agreement with Austria","content":"#### 11R Agreement with Austria\n\n Subject to this Act, on and after the date of entry into force of the Austrian agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have the force of law:\n (a) in relation to withholding tax—in respect of dividends or interest derived on or after 1 January in the calendar year next following that in which the agreement enters into force and in relation to which the agreement remains effective; and\n (b) in relation to tax other than withholding tax—in respect of income of any year of income commencing on or after 1 July in the calendar year next following that in which the agreement enters into force and in relation to which the agreement remains effective.","sortOrder":32},{"sectionNumber":"11S","sectionType":"section","heading":"Agreement with China","content":"#### 11S Agreement with China\n\n (2) For the purposes of the Assessment Act, income, profits or gains derived by a person who is a resident of China for the purposes of the Chinese agreement, being income, profits or gains that under Articles 6 to 8, 10 to 17 and 19 to 22 of the agreement may be taxed in Australia, are taken to be derived from sources in Australia.\n (3) The provisions of the Chinese agreement do not have the effect of subjecting to Australian tax any interest or royalties paid by a resident of Australia to a resident of China that, apart from that agreement, would not be subject to Australian tax.","sortOrder":33},{"sectionNumber":"11ZA","sectionType":"section","heading":"Agreement with Poland","content":"#### 11ZA Agreement with Poland\n\n The provisions of the Polish agreement do not have the effect of subjecting to Australian tax any interest or royalties paid by a resident of Australia to a resident of Poland that, apart from that agreement, would not be subject to Australian tax.","sortOrder":34},{"sectionNumber":"11ZCA","sectionType":"section","heading":"Exchange of Notes between Australia and Vietnam","content":"#### 11ZCA Exchange of Notes between Australia and Vietnam\n\n The Commissioner may amend an assessment made before the date of entry into force of the Vietnamese notes (No. 1) for the purpose of giving effect to those notes.","sortOrder":35},{"sectionNumber":"11ZF","sectionType":"section","heading":"Agreement with Taipei Economic and Cultural Office","content":"#### 11ZF Agreement with Taipei Economic and Cultural Office\n\n (2) For the purposes of the Assessment Act, if:\n (a) a person derives income, profits or gains; and\n (b) for the purposes of the Taipei agreement, the person is a resident of the foreign territory; and\n (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;\n the income, profits or gains are taken to be derived from sources in the Australian territory.\n (3) For the purposes of the Assessment Act and Article 22 of the Taipei agreement, if:\n (a) a person derives income, profits or gains; and\n (b) for the purposes of the agreement, the person is a resident of the Australian territory; and\n (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;\n the income, profits or gains are taken to have been derived from sources in the foreign territory.\n (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.\n (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.\n (6) If:\n (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\n (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\n (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;\n 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.\n (7) In this section:\n\n> Australian territory means the territory mentioned in subparagraph 1(a) of Article 2 of the Taipei agreement.\n\n> foreign territory means the territory mentioned in subparagraph 1(b) of Article 2 of the Taipei agreement.","sortOrder":36},{"sectionNumber":"11ZI","sectionType":"section","heading":"Argentine agreement","content":"#### 11ZI Argentine agreement\n\n Nothing in section 170 of the Income Tax Assessment Act 1936 prevents the amendment of an assessment made before the commencement of this section for the purpose of giving effect to the Argentine agreement.","sortOrder":37},{"sectionNumber":"16","sectionType":"section","heading":"Rebates of excess tax on income included in assessable income","content":"#### 16 Rebates of excess tax on income included in assessable income\n\n (1) This section applies in relation to each relevant part of a taxpayer’s income of the year of income that consists of income in respect of which a provision of an agreement limits the amount of Australian tax payable.\n (2) The taxpayer is entitled, in respect of each relevant part of the taxpayer’s income of the year of income to which this section applies, to a rebate of the amount (if any) by which the amount ascertained in accordance with the last preceding section as the amount of Australian tax payable in respect of that part exceeds the limit applicable under the provisions of the agreement in relation to that part.\n (3) The rebate to which a taxpayer is entitled under this section in respect of a relevant part of the taxpayer’s income shall be allowed in the taxpayer’s assessment in respect of income of the year of income in the assessable income of which that part is included.\n (4) A rebate, or the sum of the rebates, a taxpayer is entitled to under subsection (2), in respect of income of a year of income, must not exceed the amount of Australian tax payable in respect of the taxpayer’s taxable income of that year after all other rebates of, and deductions from, that tax have been taken into account.","sortOrder":38},{"sectionNumber":"17A","sectionType":"section","heading":"Withholding tax","content":"#### 17A Withholding tax\n\n (1) Where a provision of an agreement limits the amount of Australian tax payable in respect of a dividend or a royalty, being a dividend or a royalty in respect of which withholding tax is payable, and the amount of that withholding tax exceeds the limit specified in the agreement, the liability of the taxpayer for the withholding tax shall be reduced by an amount equal to the amount of the excess.\n (2) Where the liability of a taxpayer for withholding tax payable in respect of a unit trust dividend would have been reduced in pursuance of subsection (1) if that unit trust dividend had been a dividend paid to the taxpayer by a company that is a resident, that liability shall be reduced by an amount equal to the amount by which the liability would have been reduced if the unit trust dividend had been a dividend paid to the taxpayer by a company that is a resident.\n (3) In subsection (2):\n\n> unit trust dividend means a unit trust dividend within the meaning of Division 6C of Part III of the Income Tax Assessment Act 1936.\n\n (4) If:\n (a) a provision (basic royalty provision) of an agreement is covered by either of the following subparagraphs:\n (i) paragraph 1 or 2 of Article 12 of the Chinese agreement;\n (ii) a corresponding provision of another agreement; and\n (b) another provision of the agreement expressly excludes particular royalties (excluded royalties) from the scope of the basic royalty provision;\n section 128B of the Income Tax Assessment Act 1936 (which deals with liability for withholding tax) does not apply to the excluded royalties.\n (5) Section 128B of the Income Tax Assessment Act 1936 (which deals with liability for withholding tax) does not apply to the payment of a royalty as defined in subsection 6(1) of that Act if:\n (a) the royalty is paid to a person who is a resident of a Contracting State or territory (other than Australia) for the purposes of an agreement; and\n (b) the agreement does not treat the amount paid as a royalty.","sortOrder":39},{"sectionNumber":"18","sectionType":"section","heading":"Source of dividends","content":"#### 18 Source of dividends\n\n (1) Where a company is not a resident of Australia but, for the purposes of a law of a country with which, or with the government of which, an agreement has been made (being a law which imposes foreign tax), is resident in that other country, a dividend paid by the company shall, for the purposes of the agreement, be deemed to be derived from a source in that country.\n (2) Subsection (1) does not limit the operation of a provision of an agreement by virtue of which a dividend is deemed to be derived from a source outside Australia.","sortOrder":40},{"sectionNumber":"20","sectionType":"section","heading":"Collection of tax due to the United States of America","content":"#### 20 Collection of tax due to the United States of America\n\n (1) The purpose of this section is to enable the Government of Australia to give effect to its obligation under paragraph (5) of Article 25 of the United States convention (as amended) and accordingly the amounts of United States tax to which this section applies are amounts of United States tax the collection of which is necessary in order to ensure that the benefit of exemptions from United States tax, or of reductions in rates of United States tax, provided for by the convention is not received by a person not entitled to that benefit.\n (2) Where a person is liable to pay an amount of United States tax to which this section applies, there is payable by that person to the Commissioner as a debt due to the Queen on behalf of Australia an amount equivalent to that amount, and the amount so payable may be sued for and recovered in any court of competent jurisdiction by the Commissioner, a Second Commissioner or a Deputy Commissioner suing in his or her official name.\n (3) An amount payable to the Commissioner under the last preceding subsection may be collected by the Commissioner under section 218 of the Assessment Act and, for that purpose, a reference in that section to a taxpayer shall be read as a reference to the person by whom that amount is payable and a reference to an amount due by a taxpayer in respect of tax shall be read as a reference to the amount so payable.\n (4) The Commissioner, a Second Commissioner or a Deputy Commissioner may, by writing under his or her hand, certify:\n (a) that, on a date specified in the certificate, a person specified in the certificate was liable to pay an amount of United States tax;\n (b) that that amount was an amount of United States tax to which this section applies; and\n (c) that an amount specified in the certificate is an amount equivalent to the amount of United States tax;\n and such a certificate is, in all courts and for all purposes, prima facie evidence of the matters stated in the certificate and that the person specified in the certificate has, during the period from the date specified in the certificate until the date of the certificate, continued to be liable to pay the amount of United States tax.\n (5) The Commissioner shall pay to the Government of the United States of America an amount equal to any amount paid or recovered by virtue of this section.\n (6) In this section:\n\n> United States convention (as amended) means the United States convention as amended by the United States protocol (No. 1).\n\n> United States tax has the same meaning as in the United States convention (as amended).","sortOrder":41},{"sectionNumber":"21","sectionType":"section","heading":"Regulations","content":"#### 21 Regulations\n\n The power to make regulations conferred by section 266 of the Income Tax Assessment Act 1936 shall be deemed to extend to the making of regulations, not inconsistent with this Act, prescribing all matters which by this Act are required or permitted to be prescribed, or which are necessary or convenient to be prescribed for carrying out or giving effect to this Act.","sortOrder":42},{"sectionNumber":"22","sectionType":"section","heading":"Application of this Act","content":"#### 22 Application of this Act\n\n Nothing in this Act affects assessments in respect of income, or the ascertainment of credits against tax on income, of a year of income before the year of income that commenced on 1 July 1953.","sortOrder":43},{"sectionNumber":"23","sectionType":"section","heading":"Gathering and exchanging information","content":"#### 23 Gathering and exchanging information\n\n (1) The Commissioner or an officer authorised by the Commissioner may use the information gathering provisions for the purpose of gathering information to be exchanged in accordance with the Commissioner’s obligations under an international agreement.\n (3) Subsection (1) has effect whether or not the information relates to Australian tax.\n (4) In this section:\n\n> information gathering provision means a provision of a taxation law that allows the Commissioner:\n\n (a) to access land, premises, documents, information, goods or other property; or\n (b) to require or direct a person to provide information; or\n (c) to require or direct a person to appear before the Commissioner or an officer and give evidence or produce documents.\n\n> international agreement means:\n\n (a) an agreement given the force of law under this Act; or\n (b) some other agreement that allows for the exchange of information on tax matters between Australia and:\n (i) a foreign country or a constituent part of a foreign country; or\n (ii) an overseas territory.\n\n> taxation law has the same meaning as in the Income Tax Assessment Act 1997.","sortOrder":44},{"sectionNumber":"24","sectionType":"section","heading":"Relief from double taxation where profits adjusted","content":"#### 24 Relief from double taxation where profits adjusted\n\n Application\n (1) This section applies if:\n (a) Australia has an agreement with one of the following (a treaty partner):\n (i) a foreign country or a constituent part of a foreign country;\n (ii) an overseas territory; and\n (b) the treaty partner taxes profits, or purports to tax profits, in accordance with, or consistent with the principles of:\n (i) if the treaty partner is the United Kingdom—Article 9 of the United Kingdom convention; or\n (ii) otherwise—a corresponding provision of another agreement.\n\n> Note: Article 9 of the United Kingdom convention deals with profits of associated enterprises.\n\n Object\n (2) The object of this section is to prevent double taxation of the profits, to the extent that the Commissioner considers the taxation of the profits by the treaty partner to be in accordance with the agreement.\n Adjustment of taxable income or tax loss\n (3) The Commissioner may determine the amount of a taxpayer’s taxable income or tax loss of a year of income to be an amount that is appropriate having regard to the object of this section.\n\n> Note: The Commissioner may amend an assessment at any time to give effect to this section: see subsection 170(11) of the Income Tax Assessment Act 1936.","sortOrder":45}],"analysis":{"kimi_summary":{"_metrics":{"provider":"moonshot","completionTokens":2870},"content_quality":"ok","complexity_score":8,"scope_assessment":{"changed":true,"description":"The Act has expanded significantly from its original 1953 scope. Initially covering basic double taxation agreements with major trading partners (primarily the UK and US), it has grown to encompass over 40 comprehensive tax treaties, multiple amending protocols, the 2017 Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (BEPS), and highly specific modern provisions such as COVID-19 concessions for sportspeople (section 6B), funds management attribution rules (section 3AA), and spectrum licensing rules (section 3(11A)). The legislation has evolved from a simple \"giving force of law\" mechanism into a complex web of interpretative provisions, specific anti-avoidance measures, and specialised industry rules."},"complexity_factors":["Over 50 defined agreements, conventions, and protocols listed across sections 3AAA and 3AAB, each referring to external treaty documents","Extensive cross-referencing to three other major Acts: Income Tax Assessment Act 1936, Income Tax Assessment Act 1997, and Fringe Benefits Tax Assessment Act 1986","Layered amendments with multiple protocols for single countries (e.g., Malaysian protocols No. 1, 2, and 3; Singaporean protocols No. 1 and 2) creating a patchwork of historical and current rules","Complex conditional logic in section 3 regarding attribution of income through trusts, with cascading deeming provisions (subsections 3(3), 3(4), 3(11))","Incorporation by reference of external treaty texts (Australian Treaty Series) which are not reproduced in the Act itself but are given legal force by it","Specific transitional and timing rules for each agreement (e.g., different commencement dates for withholding tax vs. other tax types in sections 6A, 7, 10A)","Nested exceptions and carve-outs, such as section 4(2) giving this Act effect \"notwithstanding\" inconsistent provisions in other tax Acts, followed by subsection 4(3) carving out specific provisions like Part IVA (anti-avoidance)","Technical deeming provisions for specific industries (spectrum licenses in section 3(11A), funds management in section 3AA, alienation of real property through interposed entities in section 3A)"],"plain_english_summary":"**What this Act does**\n\nThis legislation turns Australia's international tax treaties into enforceable Australian law. Australia has signed dozens of agreements (called \"double taxation agreements\" or DTAs) with other countries to prevent people and businesses from being taxed twice on the same income. This Act takes those treaties—which are international contracts—and gives them the full legal power of an Act of Parliament. This means the treaties can override domestic tax rules when they provide lower tax rates or different rules.\n\n**Who it affects**\n\n* **Cross-border workers and investors**: Anyone earning income in Australia while living overseas, or earning income overseas while living in Australia.\n* **Multinational businesses**: Companies operating in multiple countries that need to know which country has the right to tax their profits.\n* **Trusts and managed funds**: Especially those with foreign beneficiaries or investments, as the Act contains specific rules about how trust income flowing overseas is taxed.\n* **People receiving dividends, interest, or royalties**: The Act often reduces or eliminates the withholding tax (tax taken before payment) on these amounts sent to overseas recipients.\n\n**Key mechanics**\n\n* **The \"agreements\" list**: The Act defines over 50 specific treaties, protocols, and amendments with individual countries (from Argentina to Vietnam), including the Multilateral Convention to prevent tax avoidance (BEPS). Each gets its own legal definition (for example, the \"German agreement\" or \"Singaporean protocol (No. 2)\").\n* **Force of law**: Once listed, a treaty's provisions become Australian law. If the treaty says Australia can only tax certain income at 10%, that acts as a legal cap, even if the regular Income Tax Act says the rate should be higher.\n* **Translation of terms**: The Act interprets treaty language using Australian tax concepts. For instance, when a treaty refers to \"profits,\" this Act clarifies that means \"taxable income\" under Australian law. It also defines terms like \"permanent establishment\" (a taxable business presence) and \"Australian tax\" (which includes income tax and fringe benefits tax, plus Medicare levy).\n* **Special situations**: \n * **Trusts**: Complex rules determine when foreign beneficiaries of Australian trusts are deemed to be running a business through a \"permanent establishment\" in Australia.\n * **Funds management**: Special rules apply to income from managed investment schemes to determine its source for tax purposes.\n * **Spectrum licenses**: Foreign holders of Australian radio spectrum licenses are treated as having a taxable business presence here.\n * **COVID-19 exception**: Temporary rules for the New Zealand treaty allow sportspeople and support staff who were stuck in Australia due to pandemic travel restrictions to be treated as not present here for tax purposes.\n* **Information sharing**: The Act authorises the Tax Commissioner to use Australia's information-gathering powers (like demanding documents) to collect information for foreign tax authorities under these treaties.\n\n**Why it matters**\n\nWithout this Act, Australia's tax treaties would be diplomatic promises with no legal bite. This legislation makes those agreements binding on the Australian Taxation Office and the courts. It determines whether you pay 0%, 5%, 15%, or 30% tax on international income, and it decides whether Australia or another country gets to collect the revenue. For businesses, it provides certainty about which country can tax their profits and prevents double taxation that would otherwise make international trade prohibitively expensive."},"flash_summary":{"complexity_score":8,"scope_assessment":{"changed":false,"description":"Based solely on the text supplied, the Act’s scope is to give domestic legal force to specified international tax agreements, set detailed rules for their interaction with Australian tax law (including deeming, source and withholding rules), and to provide administrative mechanisms for information exchange and assessment adjustments (see ss.3AAA, s.5, ss.4–4AA, ss.16–17A, s.23, s.24). The supplied text does not itself show an expansion or contraction of that core scope beyond those functions."},"complexity_factors":["Large number of specified agreements and protocols listed and given different legal effects (s.3AAA, s.3AAB, s.5 and table entries).","Multiple cross‑references to the Income Tax Assessment Act 1936 and the Income Tax Assessment Act 1997 and to the Fringe Benefits Tax Assessment Act 1986, with incorporation subject to exceptions (ss.4, 4AA, and s.4(3)–(4)).","Numerous deeming and source rules that change who is taxable and where income is treated as sourced (ss.3(2),(3),(11)–(11A), 3AA, 11A, 11S, 11ZF).","Specific, treaty‑by‑treaty exceptions and special rules (e.g. ss.6, 6A, 7, 11F, 11S, 11ZA, 11ZF) that must be applied differently depending on which treaty applies.","Administrative and retrospective amendment powers for the Commissioner to give effect to treaties (ss.16, 17A, 11FA, 11FB, 11ZCA, 11ZI, 11ZF(5), s.24(3)).","Information‑gathering and international exchange authority that applies even where information is not about Australian tax (s.23(1),(3)), increasing procedural complexity.","Delegated powers to the Minister and Treasurer to make determinations and to publish treaty entry‑into‑force events, and reliance on legislative instruments and regulations (ss.5(5), 4A, 21), which shifts substantive detail out of primary legislation.","Interplay with state and territory laws where inconsistencies may or may not be overridden depending on Ministerial determinations (s.5(3)–(5))."],"plain_english_summary":"# What this law does\n\n- The Act makes specified international tax agreements (treaties, protocols and exchanges of notes) part of Australian domestic law and sets out how those agreements interact with Australia’s income tax and fringe benefits tax systems (see s.5 and the schedules in s.3AAA and s.3AAB).\n- It incorporates the Income Tax Assessment Acts and the Fringe Benefits Tax Assessment Act for the purposes of applying those agreements (ss.4 and 4AA), subject to a set of specific carve‑outs and priorities (s.4(2)–(3), s.4AA(2)).\n- It contains a number of deeming and source rules that change how cross‑border income is treated for Australian tax purposes (for example, deeming certain income to be Australian‑sourced: ss.3(11), 3AA, 11A, 11S, 11ZF).\n- It gives mechanics for matching domestic tax outcomes to treaty limits: taxpayers can get rebates or reduced withholding where a treaty limits Australian tax (ss.16 and 17A). The Commissioner may amend past assessments to give effect to particular treaty changes (see, for example, ss.11FA, 11FB, 11ZCA, 11ZI, 11ZF(5)).\n- It authorises the Commissioner to use domestic information‑gathering powers to collect information to be exchanged under international tax agreements (s.23), and it requires the Treasurer to publish when agreements or similar events enter into force (s.4A).\n- It creates a mechanism to collect certain United States tax amounts as debts payable to the Commissioner where required by the US convention (s.20).\n- It allows the Minister and the Treasurer to make further administrative or legislative instruments (s.5(5), s.4A, s.21) to manage inconsistencies and to prescribe procedural details.\n\n# Who is affected and who decides\n\n- Affected parties: Australian taxpayers with cross‑border transactions or beneficiaries of foreign residents; foreign residents who receive income from Australia; trustees and beneficiaries of trusts (notably unit trusts) with Australian activities; licensees of spectrum where an agreement applies (ss.3AA, 3(11)–(11A)).\n- Who pays: taxpayers remain liable for Australian tax subject to treaty limits; where the US convention applies, persons may be required to pay amounts equivalent to US tax as a debt to the Commissioner (s.20).\n- Who decides: the Commissioner has operational powers to gather information (s.23) and to determine/amend taxable income or losses to prevent double taxation in specified cases (s.24(3)); the Minister can make determinations about inconsistencies between treaty provisions and other domestic taxing laws (s.5(5)); the Treasurer must publish entry‑into‑force events (s.4A).\n\n# Why it matters (mechanics, incentives and trade‑offs)\n\n- Mechanically, the Act converts international treaty terms into enforceable domestic rules for Australian tax. That changes legal entitlements (who can be taxed and how much) by reference to treaty text rather than solely by reference to domestic tax statutes (s.5). Where a treaty limits Australian tax, taxpayers can obtain a rebate or reduced withholding (ss.16, 17A).\n\n- Incentives and private behaviour: the Act alters after‑tax returns on cross‑border payments (dividends, interest, royalties and certain business profits) because treaty limits can reduce Australian tax on payments to residents of treaty partners (see ss.6, 11F, 11S, 11ZA, 11ZF). That changes incentives for where income is earned, how entities are structured (including the use of trusts and interposed entities — s.3A, s.3(2)), and contractual design when cross‑border payments are made.\n\n- Effect on funds and trusts: beneficiaries of widely held unit trusts that are foreign residents and entitled to income from funds management carried on in Australia are governed by special source rules (s.3AA). Trust‑related deeming rules (s.3(3)–(4), s.3(11)) can treat beneficiaries as carrying on business or as deriving income attributable to interest/royalties; that changes who is taxable in Australia.\n\n- Compliance burden and administrative costs: taxpayers and intermediaries must apply treaty rules alongside domestic tax law and provide information that may be gathered and exchanged internationally (s.23). The Commissioner can amend assessments to give effect to treaties (s.16; also ss.11FA, 11FB, 11ZCA, 11ZI, 11ZF(5)), which creates potential retrospective compliance and administrative work for both taxpayers and the tax authority.\n\n- Bureaucratic discretion and legal uncertainty: the Commissioner and the Minister have discretion to make determinations and to adjust taxable income (s.24(3), s.5(5)); the Treasurer has an administrative duty to publish events (s.4A). Those delegated powers are necessary for implementation but concentrate decision‑making authority in the tax administration and the executive.\n\n- Interaction with other domestic taxes and federal laws: treaty provisions operate subject to state or Commonwealth laws imposing non‑Australian taxes unless a determination is made to the contrary (s.5(3)–(5)). The Act also specifies particular parts of the Assessment Acts that remain subordinate or not (s.4(3)). These cross‑references add implementation complexity and require careful coordination between treaty text and domestic statutes.\n\n- Trade‑offs and risks: giving treaties domestic effect can produce concentrated benefits for residents of contracting states (lower or limited Australian tax in specific situations — e.g. ss.6, 11F, 11S) while spreading compliance and administrative costs across many taxpayers and the tax administration (see ss.16, 17A, 23). Deeming rules that extend tax entitlements to interposed entities or beneficiaries (ss.3A, 3(11), 3AA) change tax incidence in ways that depend on fact patterns and raise implementation risk where facts are complex.\n\n# Source statements of purpose and how the Act implements them\n\n- The Act explicitly states an object in one provision: section 24(2) declares the object to prevent double taxation of profits where the Commissioner considers the treaty partner’s taxation to be in accordance with the agreement. The Commissioner is empowered to adjust taxable income or loss to achieve that object (s.24(3)); that is an express delegation to the Commissioner to make unilateral determinations to align domestic assessments with treaty‑consistent outcomes.\n\n- The Act also provides specific operational mechanisms: withholding reductions and rebates (ss.16, 17A), collection and transfer of amounts equivalent to US tax to the US government (s.20(5)), and information exchange by using domestic information‑gathering powers (s.23).\n\n# Key implementation points to watch\n\n- Which treaty texts are in force domestically and their specific limits/exceptions (listed in s.3AAA and s.3AAB and given force in s.5 and ss.5A/6A/7/11 etc.).\n- Commissioner powers to collect and exchange taxpayer information (s.23) and to amend past assessments where treaties require (ss.11FA, 11FB, 11ZCA, 11ZI, 11ZF(5), s.16).\n- Deeming rules that change source and permanent establishment treatment for trusts, beneficiaries and spectrum licensees (ss.3(11), 3(11A), 3AA, 11A, 11S, 11ZF).\n- Administrative instruments and notices (Ministerial determinations under s.5(5); Treasurer notices under s.4A; regulations under s.21) that will fill technical gaps and determine interactions with other domestic laws.\n\n(References in parentheses refer to the sections of the International Tax Agreements Act 1953 quoted.)"},"summary":{"complexity_score":9,"scope_assessment":{"changed":true,"description":"The original 1953 Act was narrow in scope — it primarily gave force of law to a single bilateral agreement with the United States and a handful of early treaties. Over seven decades, the Act has grown dramatically in scope: it now incorporates over 40 bilateral agreements covering income tax, fringe benefits tax, airline profits, and funds management; extends to a multilateral treaty (the MLI) that modifies multiple bilateral treaties simultaneously; includes detailed provisions on trust beneficiaries, interposed entities, spectrum licence holders, managed investment schemes, and COVID-19 relief. The addition of anti-BEPS provisions, global minimum tax carve-outs, and corporate collective investment vehicle rules reflects a fundamental expansion beyond the original double-taxation-prevention purpose into active international tax policy enforcement."},"complexity_factors":["Incorporates and cross-references over 40 separate bilateral international treaties, protocols, conventions, and exchange of notes — each with their own substantive rules","Requires readers to consult external treaty texts (available via AustLII or the Australian Treaty Series) to understand the actual substantive obligations — the Act itself is largely a framework","Layered temporal complexity: different agreements apply to different income years, some have been superseded by later agreements for current periods but continue to apply for historical income","Multiple interlocking pieces of domestic legislation are incorporated by reference (Income Tax Assessment Act 1936, Income Tax Assessment Act 1997, Fringe Benefits Tax Assessment Act 1986, Corporations Act 2001, Radiocommunications Act 1992, etc.)","Complex trust and beneficiary attribution rules (subsections 3(3), 3(4), 3(11)) requiring understanding of Australian trust taxation concepts","The Multilateral Convention (MLI) modifies existing bilateral treaties in ways that are not always transparent — the interaction must be worked out case by case","Different rules for different income types (dividends, interest, royalties, business profits, real property gains, airline profits, funds management income) within each agreement","Anti-overlap provisions and carve-outs (e.g., Part IVA, GloBE/Pillar Two rules, corporate collective investment vehicles) add further layers","Provisions dealing with interposed entities, permanent establishments, and trust beneficiaries create multi-step analytical chains","Mixture of current and historical agreements with different commencement dates, effective periods, and application rules creates significant navigational difficulty"],"plain_english_summary":"## International Tax Agreements Act 1953 — What It Does and Why It Matters\n\n### The Big Picture\nThis Act is Australia's master switch for giving legal effect to its tax treaties (formal agreements between countries about how to share taxing rights). Without this Act, those international agreements would just be diplomatic documents — they'd have no legal force in Australia. This Act makes them binding Australian law.\n\n### What Problem Does It Solve?\nImagine you're an Australian working in Japan, or a Japanese company earning money in Australia. Without an agreement, both countries could tax the same income — you'd be taxed twice on the same earnings. These treaties (called \"double tax agreements\" or DTAs) decide which country gets to tax what, and by how much. This Act is the legal vehicle that puts those decisions into practice.\n\n### Who Is Affected?\n- **Australians working, investing, or doing business overseas** — you may pay less tax (or none) in the foreign country, and may get a credit (reduction) on your Australian tax bill\n- **Foreign residents earning income in Australia** — your tax obligations depend on whether your country has a treaty with Australia\n- **Multinational businesses** — rules about where profits are taxed, especially for businesses operating through a branch (called a \"permanent establishment\") in another country\n- **Investors in managed funds (unit trusts)** — special rules determine where their investment income is treated as coming from\n- **Anyone earning royalties or interest across borders** — the Act limits how much Australia can tax these payments in many cases\n\n### Key Things the Act Does\n1. **Locks in treaties with 40+ countries** — including the US, UK, China, Japan, India, NZ, and many others, spanning agreements from 1946 to 2022\n2. **Prevents double taxation** — so you don't pay full tax in both Australia and another country on the same income\n3. **Prevents tax evasion** — treaties also include information-sharing and anti-avoidance rules\n4. **Sets rules for specific types of income** — including dividends (company profit payments to shareholders), interest, royalties (payments for using intellectual property), airline profits, and real estate gains\n5. **Includes the Multilateral Convention** — a 2017 global agreement (signed in Paris) that updates many existing treaties at once to combat tax minimisation strategies used by multinationals (known as \"base erosion and profit shifting\" or BEPS)\n6. **Special COVID-19 rule** — for the 2020–21 and 2021–22 income years, if a sportsperson was stuck in Australia due to COVID restrictions and couldn't leave, they aren't counted as being \"present\" in Australia for treaty purposes under the NZ convention\n\n### Important Limits\n- The Act generally **overrides domestic tax law** where they conflict — treaty rules win\n- But it does **not** override Australia's powerful anti-avoidance rules (Part IVA of the Income Tax Assessment Act 1936), corporate collective investment vehicle rules, or certain global minimum tax provisions\n- Some older agreements (like those with Switzerland, Germany, and various UK agreements going back to 1946) continue to apply for historical income periods\n\n### In Plain Terms\nIf you earn money internationally, this Act is the reason you probably don't get taxed twice — and it's also part of why multinationals can't just shift profits to low-tax countries without consequences. It quietly underpins a huge amount of Australia's international economic activity."},"issue_detection":{"absurdities":[{"type":"circular_definition","section":"s 3(1) definition of 'agreement' / s 3AAA / s 3AAB","severity":"low","reasoning":"The definition of 'agreement' in s 3(1) states it means a treaty or other agreement 'described in section 3AAA or 3AAB'. Those sections then list specific named agreements. This is not truly circular in the logical sense (no infinite regress) but is a definitional shell that provides no independent meaning — the word 'agreement' throughout the Act is entirely hostage to whether a particular instrument appears on those lists, with no residual category for unlisted but otherwise qualifying agreements.","confidence":0.6,"description":"Circular definition: 'agreement' is defined by reference to sections 3AAA and 3AAB, which in turn define specific named agreements. The definition of 'agreement' only works if you already know what 3AAA and 3AAB say, but those sections do not themselves define 'agreement' — they define specific instruments. The master definition adds no independent content and is entirely parasitic on the definitional lists it references."},{"type":"other","section":"s 3(10)","severity":"medium","reasoning":"Most bilateral tax agreements pre-date the current Medicare levy structure or were negotiated with reference to specific taxes. Unilaterally deeming the Medicare levy to be income tax for treaty purposes means Australia can invoke treaty limitations on a tax that the other contracting state may never have understood to be covered. This is a one-sided fiction that could produce outcomes inconsistent with treaty intent.","confidence":0.72,"description":"Medicare levy is deemed to be 'income tax' and 'imposed as such' for all purposes of this Act. However, s 3(1) defines 'Australian tax' to include income tax 'imposed as such by an Act' and separately includes fringe benefits tax. The deeming in s 3(10) causes Medicare levy — which is constitutionally a separate levy, not income tax — to be treated as income tax for treaty purposes, potentially expanding treaty benefits or limitations to a tax the treaty partner never agreed to cover."},{"type":"self_contradicting","section":"s 3AAB(1) definition of 'United States 1953 convention' / s 5A","severity":"medium","reasoning":"Section 5A gives the 1953 US convention continued force of law 'in respect of income or fringe benefits in relation to which the agreement remains effective'. Section 5 gives the 1982 convention and its protocol force of law. There is no provision in the extracted text that definitively determines when the 1953 convention 'remains effective' as against the 1982 convention. A taxpayer or administrator must infer transitional boundaries from the agreements themselves rather than from the Act, creating interpretive uncertainty.","confidence":0.65,"description":"The United States 1953 convention is listed in s 3AAB as an 'agreement for earlier periods' and is given continued force of law by s 5A. However, a separate and entirely superseding United States convention (1982) and its protocol (No. 1) are also given force of law by s 5 and s 6. The Act thus simultaneously gives force of law to two successive US conventions without any explicit provision resolving which prevails where both could apply to the same income."},{"type":"self_contradicting","section":"s 5(2)","severity":"low","reasoning":"The Act strips Art 23 of the US convention of legal force yet separately enacts a substantive provision (s 6) that appears to replicate or rely on the effect of the convention as a whole. The interaction is not logically impossible but creates unnecessary ambiguity about whether s 6 is freestanding or derivative of the (partially disabled) convention.","confidence":0.55,"description":"Section 5(2) excludes Article 23 of the United States convention (as amended by protocol No. 1) from having the force of law under s 5(1). However, s 6 separately confirms the US convention (as amended by protocol No. 1) 'does not subject to Australian tax any interest paid by a resident of Australia to a resident of the United States that, apart from that convention, would not be subject to Australian tax.' The relationship between the carve-out in s 5(2) and the positive statement in s 6 is unclear — if Art 23 has no force of law, it is odd to then describe what 'the convention' does or does not do by reference to that same instrument."},{"type":"retroactive_impossibility","section":"s 6B(2)-(3)","severity":"medium","reasoning":"The provision applies to the 2020-21 and 2021-22 income years (already past at the time of enactment or amendment). It asks decision-makers to treat presence as non-presence — a logical fiction. While legally possible via deeming, it creates genuine absurdity: income was earned while present, but presence is legally negated, potentially allowing treaty exemptions for income sourced and earned in Australia during the very period of involuntary presence.","confidence":0.7,"description":"The COVID-19 deeming provision treats individuals as 'not present in Australia' on days when it was impractical for them to leave Australia due to COVID-19 measures, for the purpose of counting days under Art 14(2)(a) of the NZ convention. This creates a retroactive impossibility: an individual who was physically present in Australia is legally deemed not to have been present. For days on which a person demonstrably was in Australia (and potentially earning income there), the Act deems the opposite of physical reality for tax treaty purposes."},{"type":"impossible_compliance","section":"s 3AA(2)(c)","severity":"medium","reasoning":"Applying s 3AA requires identifying all future provisions of 'similar effect' to the three named provisions. There is no definition of 'similar effect', no mechanism for the Commissioner to determine which provisions qualify, and no legislative list. A taxpayer seeking to comply cannot know with certainty which source provisions are excluded when new legislation is enacted.","confidence":0.68,"description":"Section 3AA(2)(c) disapplies 'subsections 11(2), 11S(2) and 11ZF(2) of this Act, and any provision of this Act of similar effect enacted after the commencement of this section' for the purpose of working out whether funds management income is attributable to Australian sources. This requires future readers to identify provisions of 'similar effect' without any criteria for what constitutes 'similar effect', rendering the scope of the exclusion indefinite and potentially unworkable."},{"type":"impossible_compliance","section":"s 3AAA(1) — Icelandic convention note","severity":"medium","reasoning":"Giving an international agreement the force of domestic law while providing access to its text only through a transient website URL creates a practical impossibility of compliance over time. Websites are not archived legal repositories. The past tense 'could in 2023 be viewed' further signals acknowledged impermanence. Parties subject to the convention cannot be expected to comply with terms they cannot reliably access.","confidence":0.78,"description":"The note to the Icelandic convention definition states the text 'could in 2023 be viewed on the Department's website (http://www.treasury.gov.au)'. Unlike all other agreements whose notes reference the Australian Treaty Series (a permanent, citable repository), the Icelandic convention is only accessible via a website that may change or cease to exist. This means the legally operative text of an agreement given the force of law by s 5 may become practically inaccessible, undermining the rule of law."},{"type":"other","section":"s 3(8) and s 3(9)","severity":"low","reasoning":"The subsections appear to be trying to prevent s 3(8) from being used to argue that all Australian-law-meaning terms should follow the ITAA 1936 s 6(1) route. But the drafting creates an unexplained distinction: 'royalties' gets a pinned definition, while all other terms float with general tax law meaning. This is not logically impossible but is internally asymmetric without explanation.","confidence":0.55,"description":"Subsections 3(8) and 3(9) operate in an odd relationship: s 3(8) says that where an agreement gives 'royalties' the meaning it has under Australian income tax law, it has the meaning in s 6(1) ITAA 1936. Subsection 3(9) then says s 3(8) does not affect the interpretation of other expressions in the same provision where those other expressions take their meaning from Australian tax law. The net effect is a hierarchy where 'royalties' gets a special statutory meaning (s 3(8)) but all other undefined terms get their ordinary Australian tax law meaning without the benefit of s 3(8)'s specificity — creating an asymmetric interpretive regime with no obvious policy rationale."},{"type":"other","section":"s 5(3) and s 5(4)-(5)","severity":"high","reasoning":"The scheme in ss 5(3)-(5) means that whether a treaty provision protects a taxpayer from State/Territory taxation depends not on the treaty text or Parliament's enactment, but on whether the Minister has made a determination — a wholly executive act with no stated criteria, no obligation to act, and potentially no judicial review standard. This is logically anomalous: Parliament gives treaties force of law, then allows a State law to negate that force, then allows the Minister to negate the negation.","confidence":0.75,"description":"Section 5(3) subjects treaty provisions to inconsistent State/Territory tax laws (other than Australian tax), unless expressly provided otherwise in that law. Sections 5(4)-(5) then allow the Minister to make a determination that effectively re-protects treaty provisions from those State/Territory laws. This creates a bizarre three-step structure: (1) treaty has force of law; (2) State tax law overrides it; (3) Minister can override the override. The Minister's determination power is unconstrained by any criteria, giving the executive unilateral power to restore or withhold treaty protections on a case-by-case basis."}],"contradictions":[{"severity":"high","section_a":"s 4(2)","section_b":"s 4(3)(a)","confidence":0.82,"description":"Section 4(2) states that provisions of this Act have effect notwithstanding anything inconsistent in the Assessment Act, but s 4(3) carves out Part IVA of ITAA 1936 (the general anti-avoidance provision), Subdivision 195-C, and certain GloBE tax provisions. This means treaty provisions yielding reduced withholding rates or exemptions can be overridden by Part IVA. The contradiction arises because s 5(1) separately gives treaty provisions 'the force of law according to their tenor', while s 4(3) allows Part IVA to trump those same provisions — creating an unresolved hierarchy between international treaty obligations and domestic anti-avoidance law."},{"severity":"medium","section_a":"s 5(1) (force of law for all current agreements)","section_b":"s 5(2) (exclusion of Art 23 of US convention)","confidence":0.62,"description":"Section 5(1) gives all listed current agreements the force of law 'according to their tenor', and the US convention and protocol are listed. Section 5(2) then specifically excludes Art 23 of the US convention (as amended) from this general grant. However, s 6 then enacts a substantive rule apparently derived from the convention as a whole, without clarifying whether Art 23's exclusion from s 5(1) affects the operation of s 6. The result is that Art 23 has no direct legislative force but its practical effects may be partially replicated by s 6, creating inconsistency in the legal status of the same treaty provision."},{"severity":"high","section_a":"s 5A (earlier agreements continue to have force of law)","section_b":"s 5(1) (current agreements have force of law)","confidence":0.78,"description":"Multiple country-pairs have both an 'earlier' and a 'current' agreement given force of law simultaneously (e.g., New Zealand has the 1960, 1972, 1995 agreements under s 5A and the current NZ convention under s 5; the US has the 1953 convention under s 5A and the 1982 convention under s 5; Switzerland has the 1980 agreement under s 5A via s 11E and the current Swiss convention under s 5). Both instruments have domestic legal force for income 'in relation to which the agreement remains effective', but the Act provides no mechanism for determining which agreement applies to disputed income, leaving an unresolved conflict between successive instruments with force of law."},{"severity":"medium","section_a":"s 3(2) (profits of activity read as taxable income derived from that activity)","section_b":"s 3(11)(c)-(d) (beneficiary deemed to carry on business through PE)","confidence":0.6,"description":"Section 3(2) translates treaty references to 'profits of an activity or business' into references to 'taxable income derived from that activity or business' for Australian tax purposes. Section 3(11) deems a trust beneficiary to carry on the trustee's business through a PE and deems the beneficiary's share of income to be attributable to that PE. The interaction is potentially contradictory: the trustee derives the actual business profits, while the beneficiary is only entitled to a share of trust income (a different legal concept). Applying s 3(2) to transform the PE attribution in s 3(11) into 'taxable income derived from' the business may produce a different quantum than the actual business profits attributable to the PE under the treaty, undermining the treaty's intended profit allocation."},{"severity":"medium","section_a":"s 11F(2) (Malaysian agreement does not subject interest/royalties to Australian tax if not otherwise taxable)","section_b":"s 11S(3) / s 11ZA (same protection for China and Poland agreements)","confidence":0.7,"description":"Sections 11F(2), 11S(3), 11ZA, and 11ZF(4) each contain substantively identical 'non-imposition' protections (the treaty shall not subject to Australian tax interest/royalties that would not otherwise be taxable). These provisions are enacted individually for each country rather than as a general rule, meaning identical legal protection depends entirely on which country's section applies. If a new agreement is added to s 5 without a corresponding individual section, the protection would be absent — creating an arbitrary and inconsistent regime that contradicts the apparent uniform policy intent."},{"severity":"medium","section_a":"s 3AA(2) (source of income provisions do NOT apply to funds management income)","section_b":"s 3AA(3) (source of income provisions DO apply to extent income is adjusted under Art 7(2)/9(1))","confidence":0.65,"description":"Section 3AA(2) disapplies the source of income provisions (including treaty articles and domestic deeming rules) for funds management income of qualifying beneficiaries. Section 3AA(3) then re-applies those same provisions to the extent the income is adjusted under Art 7(2) or 9(1) of the UK convention or corresponding provisions. The result is that the same income can simultaneously be subject to and exempt from the source provisions depending on whether an adjustment has occurred — but there is no mechanism to apportion what portion of income is 'adjusted' versus not, creating potential for the same dollar of income to be both inside and outside the source provisions."}]}},"importantCases":[],"_links":{"self":"/api/acts/international-tax-agreements-act-1953","history":"/api/acts/international-tax-agreements-act-1953/history","analysis":"/api/acts/international-tax-agreements-act-1953/analysis","conflicts":"/api/acts/international-tax-agreements-act-1953/conflicts","importantCases":"/api/acts/international-tax-agreements-act-1953/important-cases","documents":"/api/acts/international-tax-agreements-act-1953/documents"}}