Document ID: chunk:federal_register_of_legislation:C2004A01066:schedule:3a:p8
Version: federal_register_of_legislation:C2004A01066
Segment Type: schedule
Provision Reference: sch 3A (pt 8/10)
Character Range: 21673–24239

(c) the remuneration is not deductible in determining taxable profits of a permanent establishment or a fixed base which the employer has in that other State.".

2. Paragraph (4) of Article 15 of the Convention shall be renumbered as paragraph (3).

ARTICLE 13

 Article 22 of the Convention shall be deleted and replaced by the following:

"Article 22

Source of Income

 (1) Income, profits or gains derived by a resident of a Contracting State which, under any one or more of Articles 6 to 8 and 10 to 19, may be taxed in the other Contracting State, shall for the purposes of the law of that other Contracting State relating to its tax be deemed to be income from sources in that other Contracting State.

 (2) Income, profits or gains derived by a resident of a Contracting State which, under any one or more of Articles 6 to 8 and 10 to 19, may be taxed in the other Contracting State, shall for the purposes of Article 23 and of the law of the first‑mentioned Contracting State relating to its tax be deemed to be income from sources in the other Contracting State.".

ARTICLE 14

 Article 23 of the Convention shall be deleted and replaced by the following:

"Article 23

Elimination of Double Taxation

 (1) In the case of Australia, double taxation shall be avoided as follows:

(a) subject to the provisions of the law of Australia from time to time in force which relate to the allowance of a credit against Australian tax of tax paid in a country outside Australia (which shall not affect the general principle of this Article), Canadian tax paid under the law of Canada and in accordance with this Convention, whether directly or by deduction, in respect of income derived by a person who is a resident of Australia from sources in Canada shall be allowed as a credit against Australian tax payable in respect of that income;

(b) subject to the provisions of the law of Australia from time to time in force which relate to the allowance of a credit against Australian tax of tax paid in a country outside Australia (which shall not affect the general principle of this Article), where a company which is a resident of Canada and is not a resident of Australia for the purposes of Australian tax pays a dividend to a company which is a resident of Australia and which controls directly or indirectly at least 10 per cent of the voting power of the first‑mentioned company, the credit referred to in subparagraph (a) shall include the Canadian tax paid by that first‑mentioned company in respect of that portion of its profits out of which