Document ID: chunk:federal_register_of_legislation:C2004A01066:schedule:3a:p3
Version: federal_register_of_legislation:C2004A01066
Segment Type: schedule
Provision Reference: sch 3A (pt 3/10)
Character Range: 9688–12381

right to explore for mineral, oil or gas deposits or other natural resources, and a right to mine those deposits or resources; and

(b) a right to receive variable or fixed payments either as consideration for or in respect of the exploitation of, or the right to explore for or exploit, mineral, oil or gas deposits, quarries or other places of extraction or exploitation of natural resources.

 (3) Any interest or right referred to in paragraph (2) shall be regarded as situated where the land, mineral, oil or gas deposits, quarries or natural resources, as the case may be, are situated or where the exploration may take place.

 (4) The provisions of paragraphs (1) and (3) shall also apply to the income from real property of an enterprise and to income from real property used for the performance of independent personal services.".

ARTICLE 6

1. Paragraph (6) of Article 7 of the Convention shall be deleted and replaced by the following:

 "(6) Where profits include items which are dealt with separately in other Articles of this Convention, then the provisions of those Articles shall not be affected by the provisions of this Article.".

2. A new paragraph (8) shall be added to Article 7 of the Convention as follows:

 "(8) Where:

(a) a resident of Canada is beneficially entitled, whether directly or through one or more interposed trusts, to a share of the business profits of an enterprise carried on in Australia by the trustee of a trust other than a trust which is treated as a company for tax purposes; and

(b) in relation to that enterprise, that trustee would, in accordance with the principles of Article 5, have a permanent establishment in Australia,

the enterprise carried on by the trustee shall be deemed to be a business carried on in Australia by that resident through a permanent establishment situated in Australia and that share of business profits shall be attributable to that permanent establishment.".

ARTICLE 7

 Paragraph (4) of Article 8 of the Convention shall be deleted and replaced by the following:

 "(4) For the purposes of this Article, profits derived from the carriage by ships or aircraft of passengers, livestock, mail, goods or merchandise taken on board in a Contracting State for discharge at a place in that State shall be treated as profits from operations confined solely to places in that State.".

ARTICLE 8

1. Paragraphs (2), (4) and (6) of Article 10 of the Convention shall be deleted and respectively replaced by the following:

 "(2) However, those dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident for the purposes of its tax, and according to