DT2722 - DT: Australia: old agreement, Article 23: Entry into force

This Agreement applies up to 5th April 2004 for UK income and capital gains tax, up to 31st March 2004 for UK Corporation tax and up to 30th June for Australian taxes and UK withholding taxes. For later periods the new Agreement applies. This can be accessed via the page Tax Treaties – in force http://www.hmrc.gov.uk/international/in_force.htm.

(23)(1)This Agreement shall enter into force on the date when the last of all such things shall have been done in the United Kingdom and Australia as are necessary to give the Agreement the force of law in the United Kingdom and Australia respectively, and shall thereupon have effect-

(a) in the United Kingdom-
(i) in respect of income tax (including surtax) for any year of assessment beginning on or after 6 April 1967;
(ii) in respect of capital gains tax for any year of assessment beginning on or after 6 April 1965;
(iii) in respect of corporation tax for any financial year beginning on or after 1 April 1964;

(b) in Australia -
(i) in respect of any Australian tax on dividends, on dividends derived by a non- resident on or after 1 July 1967;
(ii) in respect of withholding tax on income (other than dividends) that is derived by a non-resident, in respect of any income derived on or after 1 July 1967;
(iii) in respect of other Australian tax, for any year of income beginning on or after 1 July 1967.

(2) Subject to paragraph (3) of this Article, the Agreement between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the Commonwealth of Australia signed at London on 29 October 1946 shall terminate and cease to have effect in relation to any tax in respect of which this Agreement comes into effect in accordance with paragraph (1) of this Article.

(3)-

(a) Where any provision of the Agreement signed at London on 29 October 1946 would have afforded any greater relief from tax in one of the territories than is afforded by this Agreement any such provision as aforesaid shall continue to have effect in that territory -
(i) in the case of the United Kingdom, for any year of assessment or financial year beginning before the date this Agreement shall enter into force;
(ii) in the case of Australia, for the purposes of withholding tax on income derived by a non-resident, on income derived during any financial year beginning before the date this Agreement shall enter into force and, for the purposes of other Australian tax, for any year of income beginning before that date;

(b) notwithstanding sub-paragraph (a) of this paragraph where any greater relief from United Kingdom tax would have been afforded by Article XII of the Agreement signed at London on 29 October 1946 in respect of dividends paid by a company which is a resident of Australia than is afforded by Article 19 of this Agreement, the aforesaid Article XII shall continue to have effect as respects United Kingdom tax for any year of assessment or any financial year beginning before the date this Agreement shall enter into force only in respect of dividends paid before the said date;

(c) notwithstanding sub-paragraph (a) of this paragraph where any greater relief from Australian tax would have been afforded by paragraph (2) of Article VI of the Agreement signed at London on 29 October 1946 than is afforded by Article 8 of this Agreement, the aforesaid paragraph (2) of Article VI shall continue to have effect only in respect of dividends declared on or before the date which falls seven days after the date of signature of this Agreement.

(4) This Article shall be construed as having the result, in relation to United Kingdom tax on dividends paid by companies which are resident in the United Kingdom to residents of Australia, that the limits set by section 31 of the FA1966 on the amount of such tax chargeable shall continue to apply to dividends declared on or before the date which falls seven days after the date of signature of this Agreement to a company which is a resident of Australia and which satisfies the converse of the conditions set out in paragraph (2) Or Article VI of the Agreement signed at London on 29 October 1946.