International Tax Agreements Act 1953

Sch 8 repealed by No 45 of 2011, s 3 and Sch 1 item 67, to remove the text of the Italian Airline Profits Agreement from this Act, effective 27 June 2011. For transitional provisions see note under s 3(1) . Sch 8 formerly read:

SCHEDULE 8 - Italian Airline Profits Agreement

Section 3

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

ARTICLE 1

(1)
The existing taxes to which the Agreement applies are -

(a) in Australia:
the Commonwealth income tax, including the additional tax upon the undistributed amount of the distributable income of a private company, (hereinafter referred to as " Australian tax " );

(b) in Italy:

(i) the tax on income from movable wealth (imposta sui redditi di ricchezza mobile);

(ii) the complementary tax (imposta complementare progressiva sul reddito);

(iii) the tax on companies insofar as the tax is charged on income and not on capital (imposta sulle societa ' , per la parte che grava sul reddito e non sul patrimonio); and

(iv) the taxes on income imposed on behalf of provinces, municipalities and Chambers of commerce (imposte provinciali, comunali e camerali sul reddito), (hereinafter referred to as " Italian tax " ).

(2)
This Agreement shall also apply to any indentical or substantially similar taxes which are imposed after the date of signature of this Agreement in addition to, or in place of, the existing taxes.

ARTICLE 2

(1)
In this Agreement, unless the context otherwise requires -

(a) the term " Australia " includes any Territory of or under the authority of the Commonwealth of Australia and any Territory governed by it under a Trusteeship Agreement;

(b) the term " Italy " means the Italian Republic;

(c) the terms " Contracting State " and " other Contracting State " mean Australia or Italy, as the context requires;

(d) the term " Australian enterprise " means an enterprise that has its place of effective management in Australia;

(e) the term " Italian enterprise " means an enterprise that has its place of effective management in Italy;

(f) the term " enterprise of a Contracting State " means an Australian enterprise or an Italian enterprise, as the context requires;

(g) the term " tax " means Australian tax or Italian tax, as the context requires;

(h) the term " operation of aircraft in international traffic " means the operation of aircraft for the carriage of persons, livestock, goods or mail between -

(i) Australia and Italy;

(ii) Australia and any other country;

(iii) Italy and any other country;

(iv) countries other than Australia or Italy or places in any such country,

and in respect of an enterprise engaged in such operations includes the sale of tickets for, and the provision of services connected with, such carriage, either for the enterprise itself or for any other enterprise engaged in such operations.

(2)
In the application of the provisions of this Agreement in one of the Contracting States, any term used but not defined herein shall, unless the context otherwise requires, have the meaning which it has under the laws in force in that Contracting State relating to the taxes to which this Agreement applies.

ARTICLE 3

(1)
Profits derived by an enterprise of a Contracting State from the operation of aircraft in international traffic or arising from the carriage by air of persons, livestock, goods or mail between places in that Contracting State, shall be exempt from tax in the other Contracting State.

(2)
The exemption provided in paragraph 1 of this Article shall apply to a share of the profits from the operation of aircraft in international traffic derived by an enterprise of a Contracting State through participation in a pooled service, in a joint air transport operation or in an international operating agency.

ARTICLE 4

(1)
This Agreement shall be ratified and the instruments of ratification shall be exchanged at Rome as soon as possible.

(2)
This Agreement shall enter into force on the date of the exchange of the instruments of ratification and its provisions shall have effect -

(a) in Australia, for the year of income that commenced on the first day of July 1966 and subsequent years of income;

(b) in Italy, in respect of income assessable for any taxable period commencing on or after the first day of January 1966.

ARTICLE 5

This Agreement shall continue in effect indefinitely but either Contracting State may, on or before the thirtieth day of June in any calendar year after the year 1973, give notice of termination to the other Contracting State and in such event this Agreement shall cease to be effective -

(a) in Australia, for the year of income commencing on the first day of July in the calendar year next following that in which the notice of termination is given, and subsequent years of income; and

(b) in Italy, in respect of income assessable for any taxable period commencing on or after the first day of January in the calendar year next following that in which the notice of termination is given.

IN WITNESS WHEREOF the undersigned, duly authorised thereto, have signed the present Agreement.

DONE in duplicate at Canberra the thirteenth day of April, 1972 in the English and Italian languages, both texts being equally authoritative.

B.M. SNEDDEN For the Government of the Commonwealth of Australia

PAOLO CANALI For the Government of Italy

Sch 8 inserted by No 11 of 1973.