Document ID: chunk:federal_register_of_legislation:C2004A01208:schedule:47:p23
Version: federal_register_of_legislation:C2004A01208
Segment Type: schedule
Provision Reference: sch 47 (pt 23/25)
Character Range: 144798–147545

of that State is inadequate to determine the profits to be attributed to an enterprise, provided that that law shall be applied, so far as it is practicable to do so, consistently with the principles of this Article.

(5) With reference to paragraph 2 of Article 10,

 It is understood that nothing in this paragraph affects the rate of tax that applies to the company paying the dividends in the Contracting State of which the company is a resident by reason of distribution of such dividends.

(6) With reference to paragraph 5 of Article 10,

 It is understood that an issue of bonus shares is included in the term "dividends".

(7) With reference to paragraph 2 of Article 11,

        (a) The term "recognized securities market" means:

            (i) in the case of Mexico, stock exchanges duly authorized under the terms of the Stock Market Law (Ley del Mercado de Valores) of 2 January, 1975;

            (ii) in the case of Australia, a stock exchange authorized under the laws of Australia; and

            (iii) any other stock exchange agreed upon by the competent authorities of the Contracting States.

        (b) The provisions of this paragraph shall not apply to interest derived from back‑to‑back loans.  In such case, the interest shall be taxable in accordance with the domestic law of the State in which it arises.

(8) With reference to paragraph 6 of Article 11 and paragraph 6 of Article 12,

 It is understood that where a loan has been contracted by an enterprise of a Contracting State and a part only of that loan is attributed to a permanent establishment or fixed base of that enterprise in the other Contracting State, or where a contract under which royalties are paid has been concluded by the enterprise and a part only of such contract is attributed to such permanent establishment or fixed base, then only that part of the loan or contract is to be considered as an indebtedness or a contract connected with that permanent establishment or fixed base.

(9) With reference to Article 12,

 It is understood that the definition of "royalties" includes payments or credits, whether periodical or not, and however described or computed, to the extent to which they are made as consideration for:

        (a) the reception of, or the right to receive, visual images or sounds, or both, transmitted to the public by:

 (i) satellite; or

 (ii) cable, optic fibre or similar technology; and

        (b) the use in connection with television broadcasting or radio broadcasting, or the right to use in connection with television broadcasting or radio broadcasting, visual images or sounds, or both, transmitted by:

 (i) satellite; or

 (ii) cable, optic fibre or similar technology; and

        (c) the use of,