Document ID: chunk:federal_register_of_legislation:C2004A00987:schedule:2a:p3
Version: federal_register_of_legislation:C2004A00987
Segment Type: schedule
Provision Reference: sch 2A (pt 3/14)
Character Range: 59200–61892

that if the relevant law in either Contracting State is varied after the effective date of this provision otherwise than in minor respects so as not to affect its general character, the Contracting States shall consult each other with a view to agreeing to any amendment of this paragraph that may be appropriate.
(3) Notwithstanding the provisions of paragraph (2), dividends shall not be taxed in the Contracting State of which the company paying the dividends is a resident if the person who is beneficially entitled to the dividends is a company that is a resident of the other Contracting State that has owned shares representing 80 percent or more of the voting power of the company paying the dividends for a 12‑month period ending on the date the dividend is declared and:
    (a) is a qualified person by reason of sub‑paragraph (c) of paragraph (2) of Article 16 (Limitation on Benefits); or
    (b) is entitled to benefits with respect to the dividends under paragraph (5) of that Article.
    (4) (a) Sub‑paragraph (a) of paragraph (2) and paragraph (3) shall not apply in the case of dividends paid by a Regulated Investment Company (RIC) or a Real Estate Investment Trust (REIT).
    (b)                In the case of dividends paid by a RIC, sub‑paragraph (b) of paragraph (2) shall apply.
    (c)                In the case of dividends paid by a REIT, sub‑paragraph (b) of paragraph (2) shall apply only if:
        (i)           the person beneficially entitled to the dividends is an individual holding an interest of not more than 10 percent in the REIT;
        (ii)          the dividends are paid with respect to a class of stock that is publicly traded and the person beneficially entitled to the dividends holds an interest of not more than 5 percent of any class of the REIT's stock; or
        (iii)        the person beneficially entitled to the dividends holds an interest of not more than 10 percent in the REIT and the gross value of no single interest in real property held by the REIT exceeds 10 percent of the gross value of the REIT's total interest in real property.
    (d) Notwithstanding sub‑paragraph (c), sub‑paragraph (b) of paragraph (2) shall apply with respect to dividends paid by a REIT to a listed Australian property trust ("LAPT"). However, if the responsible entity for the LAPT knows or has reason to know that one or more unitholders each owns 5 percent or more of the beneficial interests in the LAPT, each of such 5 percent or more unitholders shall, for purposes of this paragraph, be deemed to hold such proportion of the LAPT's direct interest in the REIT as equals that person's proportionate interest in the LAPT and shall be deemed