2.425 This Article provides for the entry into force of the Convention. In this example, the royalty income paid to the trust on which the Australian resident beneficiaries are assessable under Australian income tax law would be eligible for the benefits of the Convention. This is to prevent the situation where enterprises structure their business so that most of their activities fall within the exceptions with a view to avoiding taxation in that country. This provision is designed to overcome that practical difficulty. If a company covered by those provisions sought to enter into a DLC arrangement with a NewZealand company that under NewZealand law was required to maintain a similar number of NewZealand citizens as directors, the two companies could not have common boards of directors. 2.397 The provisions relating to assistance in collection in the Convention are identical in effect to those included in the existing NewZealand Agreement by the amending Protocol signed on 15November2005. However, exemptions from source country taxation have been provided for interest paid to: certain government bodies and banks performing central banking functions [Article11, subparagraph3a)]; and. However, a subsidiary company gives rise to a permanent establishment if the subsidiary permits the parent company to operate from its premises such that the tests in paragraph 1 of Article 5 are met, or the subsidiary acts as an agent such that a dependent agent permanent establishment is constituted. The Convention will replace the, Agreement between the Government of Australia and the Government of NewZealand for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income, Protocol Amending the Agreement between the Government of Australia and the Government of NewZealand for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income, The Agreements Act 1953 gives the force of law in Australia to Australias tax treaties which appear as Schedules to that Act. [Article 25, paragraph 7]. if the individual has an habitual abode in both Australia and NewZealand or in neither, the individual shall be deemed to be a resident of the country of which they are a national. 2.222 The source country rate limits and exemptions available under this Article will not apply where an assignment of the interest, or a creation or assignment of the debt-claim or other rights in respect of which the interest is paid, has been made with the main objective, or one of the main objectives, of accessing the relief otherwise available under this Article. It is understood that paragraph 7 of Article 4 (. The offset is subject to the normal limits discussed in paragraph 2.313 on paragraph 1 of Article 23. In these circumstances, payments from abroad received by the students or business apprentices solely for their maintenance, education or training will be exempt from tax in the country visited. In this example, the royalty income would prima facie be eligible for treaty benefits. 2.373 In some instances, the competent authorities will not reach agreement on a solution to a particular case. 2.167 This Article deals with associated enterprises (such as parent and subsidiary companies and companies under common control).
