Australian Tax Treaties

Icelandic Convention  

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  

SECTION 1.  

1.    
With reference to paragraph 4 of Article 27 :

It is understood that the reference to ' any provision of the laws of a Contracting State which is designed to prevent evasion or avoidance of taxes ' includes:

(a) in the case of Australia, Part IVA of the Income Tax Assessment Act 1936 or section 67 of the Fringe Benefits Tax Assessment Act 1986 ;

(b) in the case of Iceland, general anti-avoidance rules in the income tax law;

(c) measures designed to address thin capitalisation and dividend stripping;

(d) measures designed to address transfer pricing;

(e) controlled foreign company and transferor trust rules;

(f) measures designed to ensure that taxes can be effectively collected and recovered, including conservancy measures.