Document ID: chunk:federal_register_of_legislation:C2004A00987:schedule:2a:p1
Version: federal_register_of_legislation:C2004A00987
Segment Type: schedule
Provision Reference: sch 2A (pt 1/14)
Character Range: 54023–56938

Schedule 2A—United States protocol

Note: See section 3.

PROTOCOL AMENDING THE CONVENTION BETWEEN THE GOVERNMENT OF AUSTRALIA AND THE GOVERNMENT OF THE UNITED STATES OF AMERICA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL

EVASION WITH RESPECT TO TAXES ON INCOME

The Government of Australia and the Government of the United States of America,

Desiring to amend the Convention between the Government of Australia and the Government of the United States of America for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income signed at Sydney on the sixth day of August 1982 (in this Protocol referred to as "the Convention"),

Have agreed as follows:

ARTICLE 1
    Article 1 of the Convention is amended by:
    (a) inserting in the last sentence of paragraph (3) "or long‑term resident" after "include a former citizen"; and
    (b) by omitting in the last sentence of paragraph (3) "citizenship" and substituting "such status".

ARTICLE 2
    Article 2 of the Convention is amended by omitting paragraph (1) and substituting:
    "(1) The existing taxes to which this Convention shall apply are:
         (a) in the United States: the Federal income taxes imposed by the Internal Revenue Code; and
         (b) in Australia:

            (i)       the Australian income tax, including tax on capital gains; and
            (ii)     the resource rent tax in respect of offshore projects relating to exploration for or exploitation of petroleum resources,
          imposed under the federal law of Australia.".

ARTICLE 3
    Article 4 of the Convention is amended by:
    (a) deleting "or" at the end of sub‑paragraph (1)(b)(i) and inserting after that sub‑paragraph the following:
        "(ii) a United States citizen, other than a United States citizen who is a resident of a State other than Australia for the purposes of a double tax agreement between that State and Australia; or"; and
    (b) renumbering sub‑paragraph (1)(b)(ii) as sub‑paragraph (1)(b)(iii).

ARTICLE 4
Article 7 of the Convention is amended by inserting:
"(9) Where:
    (a) a resident of one of the Contracting States is beneficially entitled, whether directly or through one or more interposed fiscally transparent entities, to a share of the business profits of an enterprise carried on in the other Contracting State by the fiscally transparent entity (or, in the case of a trust, by the trustee of the trust estate); and
    (b) in relation to that enterprise, that fiscally transparent entity (or trustee) would, in accordance with the principles of Article 5 (Permanent Establishment), have a permanent establishment in that other State, that enterprise carried on by that fiscally transparent entity (or trustee) shall be deemed to be a business carried on in the other State by that resident through a permanent establishment situated in that other State