Document ID: chunk:federal_register_of_legislation:C2008A00102:schedule:6:p33
Version: federal_register_of_legislation:C2008A00102
Segment Type: schedule
Provision Reference: sch 6 (pt 33/39)
Character Range: 82764–85674

following the expiration of the six month period.

IN WITNESS WHEREOF the undersigned, being duly authorised thereto by their respective Governments, have signed this Convention.

DONE in duplicate at Tokyo this thirty‑first day of January, 2008, in the English and Japanese languages, each text being equally authentic.

For Australia                 For Japan

Hon. Stephen Smith            Hon. Masahiko Koumura
Minister for Foreign Affairs  Minister for Foreign Affairs
[Signatures omitted]

Protocol

At the signing of the Convention between Australia and Japan for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income (hereinafter referred to as "the Convention"), Australia and Japan have agreed upon the following provisions, which shall form an integral part of the Convention.

1.  With reference to subparagraph b) of paragraph 1 of Article 2 (Taxes Covered) of the Convention:

The term "the petroleum resource rent tax" means the resource rent tax, in respect of offshore projects relating to the exploration for or exploitation of petroleum resources, imposed under the Petroleum Resource Rent Tax Act 1987.

2.  With reference to subparagraph d) of paragraph 1 of Article 3 (General Definitions) of the Convention:

The term "Australian tax" or "Japanese tax" shall not include any amount which represents a penalty or interest imposed under the laws of Australia or Japan, respectively, relating to the taxes to which the Convention applies.

3.  With reference to paragraph 2 of Article 4 (Resident) of the Convention:

It is understood that the fact of having an habitual abode in a Contracting State rather than in the other Contracting State shall be taken into account in determining where the individual's centre of vital interests is situated.

4.  With reference to paragraph 3 of Article 4 (Resident) of the Convention:

It is understood that the term "any other relevant factors" includes:

a)  where the senior day‑to‑day management is carried on;

b)  which Contracting State's law governs the legal status;

c)  where the accounting records are held; and

d)  where business is carried on.

5.  With reference to subparagraphs b) and c) of paragraph 4 of Article 5 (Permanent Establishment) of the Convention:

a)  It is understood that an enterprise of a Contracting State shall not be considered to operate equipment in the other Contracting State where the enterprise leases equipment under a lease contract that is solely for the provision of equipment, including a bareboat lease contract.

b)  It is understood that the factors of size, quantity or value of equipment or the role of equipment in income producing activities are relevant in determining whether the equipment is substantial on the basis of the facts and circumstances of each particular case.

c)  It is understood that the term "substantial equipment"