Australian Tax Treaties

Canadian Convention  

Canadian Protocol (No 1)  

ARTICLE 6  

1.    
Paragraph (6) of Article 7 of the Convention shall be deleted and replaced by the following:

" (6)
Where profits include items which are dealt with separately in other Articles of this Convention, then the provisions of those Articles shall not be affected by the provisions of this Article. " .

2.    
A new paragraph (8) shall be added to Article 7 of the Convention as follows:

" (8)
Where:

(a) a resident of Canada is beneficially entitled, whether directly or through one or more interposed trusts, to a share of the business profits of an enterprise carried on in Australia by the trustee of a trust other than a trust which is treated as a company for tax purposes; and

(b) in relation to that enterprise, that trustee would, in accordance with the principles of Article 5, have a permanent establishment in Australia,

the enterprise carried on by the trustee shall be deemed to be a business carried on in Australia by that resident through a permanent establishment situated in Australia and that share of business profits shall be attributable to that permanent establishment. " .