Document ID: chunk:federal_register_of_legislation:C2004A01208:schedule:47:p9
Version: federal_register_of_legislation:C2004A01208
Segment Type: schedule
Provision Reference: sch 47 (pt 9/25)
Character Range: 110208–112834

to the enterprise of the firstmentioned State if the conditions made between the two enterprises had been those which would have operated or which might be expected to have operated between independent enterprises dealing wholly independently with one another, then that other State shall, in accordance with the provisions of Article 24, make an appropriate adjustment to the amount of tax charged in that State on those profits if it agrees with the adjustment made by the firstmentioned Contracting State.  In determining such an adjustment, due regard shall be had to the other provisions of this Agreement and the competent authorities of the Contracting States shall if necessary consult each other.
3 The provisions of paragraph 2 shall not apply in the case of fraud.

Article 10

DIVIDENDS

1 Dividends paid by a company which is a resident of a Contracting State, being dividends to which a resident of the other Contracting State is beneficially entitled, may be taxed only in that other State.

2 However, those dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident, and according to the law of that State, but the tax so charged shall not exceed:

        (a) nil per cent of the gross amount of so much of the dividends as are paid out of profits that have borne the normal rate of company tax, if the person beneficially entitled to those dividends is a company (other than a partnership) which holds directly at least 10 per cent of the voting power in the company paying the dividends; and

        (b) 15 per cent of the gross amount of the dividends to the extent to which those dividends are not within paragraph (a),

provided that if the relevant law in either Contracting State at the date of signature of this Agreement is varied 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 For the purposes of paragraph 2, profits have borne the normal rate of company tax:

        (a) in Mexico, to the extent to which the dividends have been paid from the net profit account; and

        (b) in Australia, to the extent to which the dividends have been "franked" in accordance with its law relating to tax.

4 The provisions of paragraph 1 and paragraph 2 shall not affect the taxation of the company in respect of the profits out of which the dividends are paid.

5 The term "dividends" in this Article means income from shares and other income assimilated to income from shares by the law,