Private ruling: Financial institution
Published: January 2014

Ruling: Q1: Does Article 11 of the Convention between the Government of A and the Government of the B apply to a foreign entity? | A1: Yes. | Q2: Is ForCo liable to withholding tax under section 128B of the Income Tax Assessment Act 1936 (ITAA 1936)? | A2: No


Relevant legislative provisions: Convention between the Government of A and the Government of B

Reasons for decision: Summary: The relevant requirements of Article 11 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: ForCo structures and provides finance and managing assets for third party investors. ForCo has subsidiaries overseas. ForCo receives interest payments from overseas subsidiaries. ForCo is a resident of a contracting state (i.e. Government A) that has entered into a double tax agreement with Government B.