Document ID: chunk:federal_register_of_legislation:C2004A01066:schedule:3a:p9
Version: federal_register_of_legislation:C2004A01066
Segment Type: schedule
Provision Reference: sch 3A (pt 9/10)
Character Range: 24004–26732

least 10 per cent of the voting power of the first‑mentioned company, the credit referred to in subparagraph (a) shall include the Canadian tax paid by that first‑mentioned company in respect of that portion of its profits out of which the dividend is paid.

 (2) In the case of Canada, double taxation shall be avoided as follows:

(a) subject to the existing provisions of the law of Canada regarding the deduction from tax payable in Canada of tax paid in a territory outside Canada and to any subsequent modification of those provisions (which shall not affect the general principle hereof) and unless a greater deduction or relief is provided under the laws of Canada, tax payable in Australia on profits, income or gains from sources in Australia shall be deducted from any Canadian tax payable in respect of such profits, income or gains;

(b) subject to the existing provisions of the law of Canada regarding the allowance as a credit against Canadian tax of tax payable in a territory outside Canada and to any subsequent modification of those provisions (which shall not affect the general principle hereof) where a company which is a resident of Australia pays a dividend to a company which is a resident of Canada and which controls directly or indirectly at least 10 per cent of the voting power in the first‑mentioned company, the credit shall take into account the tax payable in Australia by that first‑mentioned company in respect of the profits out of which such dividend is paid; and

(c) where, in accordance with any provision of this Convention, income derived by a resident of Canada is exempt from tax in Canada, Canada may nevertheless, in calculating the amount of tax on other income, take into account the exempted income.".

ARTICLE 15

 A new paragraph (6) shall be added to Article 24 of the Convention as follows:

 "(6) For the purposes of paragraph 3 of Article XXII (Consultation) of the General Agreement on Trade in Services, the Contracting States agree that, notwithstanding that paragraph, any dispute between them as to whether a measure falls within the scope of this Convention may be brought before the Council for Trade in Services, as provided by that paragraph, only with the consent of both Contracting States. Any doubt as to the interpretation of this paragraph shall be resolved under paragraph (3) of this Article or, failing agreement under that procedure, pursuant to any other procedure agreed to by both Contracting States.".

ARTICLE 16

 A new Article 26A shall be added to the Convention immediately after Article 26 as follows:

"ARTICLE 26A

Various Interests of Canadian Residents

 Nothing in this Convention shall be construed as preventing Canada from