Tax Laws Amendment (2007 Measures No. 4) Act 2007 (143 of 2007)

Schedule 1   New foreign income tax offset rules

Part 4   Consequential and other amendments

Taxation (Interest on Overpayments and Early Payments) Act 1983

216   After subsection 3A(1)

Insert:

(1A) For the purposes of this Act, a decision to which this Act applies is made to provide correlative relief for economic double taxation if:

(a) Australia has an agreement with one of the following (a treaty partner ):

(i) a foreign country or a constituent part of a foreign country;

(ii) an overseas territory; and

(b) the treaty partner taxes profits, or purports to tax profits, in accordance with, or consistent with the principles of:

(i) if the treaty partner is the United Kingdom - Article 9 of the 2003 United Kingdom convention; or

(ii) otherwise - a corresponding provision of another agreement; and

Note: Article 9 of the 2003 United Kingdom Convention deals with associated enterprises.

(c) the decision is made in giving effect to subsection 24(3) of the International Tax Agreements Act 1953.