Private ruling: Interest withholding tax
Date of advice: 23 December 2019
Published: March 2020

Ruling: The Commissioner issued a private ruling to a non-resident entity that it is not a 'financial institution' for the purposes of Article 11(3)b) of the Convention between the Government of Australia and the Government of the United Kingdom of Great Britain and Northern Ireland for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and on Capital Gains [2003] ATS 22. | In respect of interest income derived from Australian residents, the Commissioner ruled that the entity was liable to interest withholding tax under subsection 128B(2) of the Income Tax Assessment Act 1936 (ITAA 1936). | In respect of receivables activity income derived from Australian residents, the Commissioner ruled that the entity was not liable to interest withholding tax under subsection 128B(2) of the ITAA 1936.