International Tax Agreements Amendment Act 2016 (64 of 2016)

Schedule 1   Amendments

Part 2   Technical amendments

Taxation (Interest on Overpayments and Early Payments) Act 1983

10   Subsection 3A(1A)

Repeal the subsection, substitute:

(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) there is a double tax agreement applying to Australia and 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 United Kingdom convention (within the meaning of the International Tax Agreements Act 1953); or

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

Note: Article 9 of the United Kingdom convention deals with profits of associated enterprises.

(c) the decision is made in giving effect to subsection 24(3) of that Act.