Taxation Laws Amendment Act (No. 1) 2003 (12 of 2003)

Schedule 1   Interest withholding tax exemptions

Income Tax Assessment Act 1936

3   Subsection 128A(1)

Insert:

nostro account means an account that:

(a) an ADI or non-ADI financial institution holds with a foreign bank and maintains for the sole purpose of settling international transactions; and

(b) operates on the basis that:

(i) amounts deposited in the account are held in the account for no more than 10 days; and

(ii) amounts advanced by way of an overdraft on the account are repaid within 10 days.