Private ruling: Financial institution
Date of advice: 30 June 2017
Published: October 2017

Ruling: Q1: Does the relevant Article of the Convention between Country A and Country B apply to a foreign entity? | A1: Yes. | Q2: Is Company X liable to withholding tax under section 128B of the Income Tax Assessment Act 1936 (ITAA 1936)? | A2: No


Relevant legislative provisions: Convention between Country A and Country B

Reasons for decision: Summary: The relevant requirements of the relevant Article of the Convention between the Government of A and the Government of the B were all satisfied The relevant requirements of section 128B of the ITAA 1936 were satisfied.

Relevant facts: Company X structures and provides finance and managing assets for third party investors. Company X has subsidiaries overseas. Company X receives interest payments from overseas subsidiaries. Company X is a resident of a contracting state (i.e. Country A) that has entered into a double tax agreement with Country B.