Ato Double Tax Agreement New Zealand
2.373 In some cases, the competent authorities will not agree on a solution to a particular case. Paragraph 6 of this section provides for the use of an arbitration procedure to resolve these cases. The provisions of this paragraph are largely consistent with the provisions of Article 25, paragraph 5 (mutual agreement procedure) of the OECD model. 5.4 Tax treaties reduce or eliminate double taxation by providing, in certain situations, to limit tax duties to different types of income. The countries concerned also agree on methods of reducing double taxation when both countries use their right to tax. In the absence of provisions to reduce the resulting double taxation, international trade would be seriously hampered. 2.82 In this context, the competent authorities take into account the person`s place of management, where the person is received or otherwise trained, as well as all other relevant factors, such as the factors listed in Article 4 of paragraph 24 of the OECD`s commentary on the OECD model (OECD model). In the absence of an agreement between the competent authorities, such a person is not entitled to an img. or exemption from the exemption under the convention. 2.312 However, it is necessary to impose a method of double taxation relief for other categories of income, profits or profits that will continue to be taxed in both countries under the Convention. In accordance with international practice, Australian tax treaties provide for double tax relief by the taxpayer`s country of residence through an exemption from foreign income or a credit or deduction from his or her tax on the country of origin.
This article also reflects this approach. 4.39 The exchange of information is governed by the provisions of the Jersey Information Exchange Agreement, signed by the two countries on 10 June 2009. After this agreement enters into force and comes into force, it will provide for a predictable exchange of information for the management of the tax legislation of both countries. It also contains safeguards to protect the rights of taxpayers. For example: 2.322 As stated in paragraphs 2.89 to 2.96, in certain circumstances, contractual benefits under the Convention apply to income that passes through MITs. When these revenues are allocated to an Australian-based shareholder for Australian tax purposes and are taxed in their hands (i.e., where the shareholder is currently entitled to MIT income), the shareholder is entitled to double tax relief for New Zealand tax collected on that income.