Document ID: chunk:federal_register_of_legislation:C2008A00111:schedule:42a:p12
Version: federal_register_of_legislation:C2008A00111
Segment Type: schedule
Provision Reference: sch 42A (pt 12/16)
Character Range: 29160–32085

partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the firstmentioned State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of the firstmentioned State in similar circumstances are or may be subjected.

    5. This Article shall not apply to any provision of the laws of a Contracting State which:

(a) is designed to prevent the avoidance or evasion of taxes;

         (b) does not permit the deferral of tax arising on the transfer of an asset where the subsequent transfer of the asset by the transferee would be beyond the taxing jurisdiction of the Contracting State under its laws;

         (c) provides for consolidation of group entities for treatment as a single entity for tax purposes provided that a company, being a resident of that State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, may access such consolidation treatment on the same terms and conditions as other companies that are residents of the firstmentioned State;

         (d) does not allow tax rebates or credits in relation to dividends paid by a company that is a resident of that State for purposes of its tax;

         (e) provides deductions to eligible taxpayers for expenditure on research and development; or

         (f) is otherwise agreed to be unaffected by this Article in an Exchange of Notes between the Contracting States.

    6. In this Article, provisions of the laws of a Contracting State which are designed to prevent avoidance or evasion of taxes include:

         (a) measures designed to address thin capitalisation, dividend stripping and transfer pricing;

         (b) controlled foreign company, transferor trusts and foreign investment fund rules; and

         (c) measures designed to ensure that taxes can be effectively collected and recovered, including conservancy measures."

ARTICLE 10

Article 25 of the Agreement is omitted and the following Article is substituted:

"Article 25

Exchange of Information

    1. The competent authorities of the Contracting States shall exchange such information as is foreseeably relevant for carrying out the provisions of this Agreement or to the administration or enforcement of the domestic law concerning taxes referred to in Article 2, insofar as the taxation thereunder is not contrary to the Agreement. The exchange of information is not restricted by Article 1.

    2. Any information received under paragraph 1 by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic law of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with