Orbitax Tax News & Alerts
Australia's Tax news & updates from Orbitax and partners
Australia Tax News
Classification of Korean Hapja Hoesa for Australian income tax purposes
Draft taxation ruling on withholding tax on payments to non-residents for works and related activities
Taxation ruling on withholding tax on shipping income
Protocol to treaty between Australia and New Zealand submitted for ratification
French Court of Appeals decision on debt waivers granted to branches of foreign subsidiary by French parent company published
German state-owned bank not exempt from interest withholding tax
Following a reduction in withholding tax rates in the 2001 protocol to the Australia-US tax treaty, Australia is required under the most-favoured-nation clause in its existing treaty with Korea (Rep.) to renegotiate the 1982 Australia-Korea (Rep.) treaty.
In McDermott Industries (Aust) Pty Ltd v. FCT, the taxpayer company argued that it was not required to withhold tax on bare boat charter payments that it made to a Singaporean company (S-Co). Australia's Federal Commissioner of Taxation sought to apply a rule that a deduction for a royalty subject to withholding tax is not available to the paying company, unless it has paid the withholding tax (in which case the deduction becomes available in the year in which the royalty was incurred). The taxpayer's position was that royalty withholding tax was not payable because S-Co had a deemed permanent establishment under the tax treaty between Australia and Singapore to which the royalties related.
Legislation on loss recoupment rules for companies details
On 15 November 2005, Australia and New Zealand signed in Melbourne, Australia, a protocol to update the1995 tax treaty.
Australia's Trade Minister has announced that the tax treaty between Australia and Turkey is to be finalized shortly.
Tribunal rules that fees for credit ratings services taxable as "royalty"
In a joint press release issued on 14 July 2005, the Prime Minister of Australia and the President of the Republic of Chile announced that Chile will host in Santiago in early September 2005 the first round of negotiations for a tax treaty between Australia and Chile.
Australia and New Zealand have announced that discussions recently began for a review of the Australia-New Zealand income tax treaty signed on 27 January 1995.
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