On 7 December 2006, the Tax Laws Amendment (2006 Measures No. 7) Bill 2006 was introduced in Parliament. Schedule 2 of the Bill includes a proposed amendment to the provisions dealing with interest withholding tax which will allow the Commissioner of Taxation to issue regulations denying specific instruments the exemption from interest withholding tax which otherwise would be available.
Interest paid to a non-resident on debentures issued by an Austral…