Document ID: chunk:federal_register_of_legislation:C2008A00102:schedule:6:p39
Version: federal_register_of_legislation:C2008A00102
Segment Type: schedule
Provision Reference: sch 6 (pt 39/39)
Character Range: 98231–100821

(hereinafter referred to as "the OECD Transfer Pricing Guidelines"), which reflect the international consensus with respect to these issues.  The domestic transfer pricing rules, including the transfer pricing methods, of each Contracting State may be applied in resolving transfer pricing cases under the Convention only to the extent that they are consistent with the OECD Transfer Pricing Guidelines.

His Excellency
The Hon. Stephen Smith
Minister for Foreign Affairs
of Australia

3. With reference to paragraph 3 of Article 10 (Dividends) and subparagraph a) of paragraph 3 of Article 23 (Limitation on Benefits) of the Convention:

 It is understood that the date on which entitlement to the dividends is determined is:

          a) in the case of Japan, the end of the accounting period for which the distribution of profits takes place; or
          b) in the case of Australia, the date the dividends are declared.

 If the foregoing understanding is acceptable to the Government of Australia, I have the honour to suggest that the present note and Your Excellency's reply to that effect should be regarded as constituting an agreement between the two Governments in this matter, which shall enter into force at the same time as the Convention.

 I avail myself of this opportunity to extend to Your Excellency the assurance of my highest consideration.

                                        Masahiko Koumura
                                           Minister for Foreign Affairs
                                        of Japan
              [Signature omitted]

(Australian Note)

Tokyo, 31 January, 2008

Excellency:

 I have the honour to acknowledge receipt of Your Excellency's Note of today's date which in translation reads as follows:

"(Japanese Note)"

 The foregoing understanding being acceptable to the Government of Australia, I have the honour to confirm that Your Excellency's Note and this reply shall be regarded as constituting an agreement between the two Governments in this matter, which shall enter into force at the same time as the entry into force of the Convention.

 I take this opportunity to extend to Your Excellency the assurance of my highest consideration.

           Stephen Smith
                        Minister for Foreign Affairs
                      of Australia
                             [Signature omitted]

His Excellency
Mr. Masahiko Koumura
Minister for Foreign Affairs
of Japan

[Minister's second reading speech made in—
House of Representatives on 27 August 2008
Senate on 15 September 2008]
(155/08)