Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) For the purposes of this Act, a decision to which this Act applies is made to provide correlative relief for juridical double taxation in respect of the taxing of an amount under a law of a foreign country if:
(a) there is a double tax agreement applying to Australia and the foreign country; and
(b) a provision of the double tax agreement has been prescribed, or the manner of operation of a provision of the double tax agreement has been prescribed, for the purposes of this paragraph; and
(c) the decision is made, or the applying of the income tax crediting amount takes place, in giving effect, or in circumstances that would enable effect to be given, to the provision mentioned in paragraph (b), or to that provision in its operation in the prescribed manner, as a result of the taxing of the amount under the law of the foreign country.
(1A) For the purposes of this Act, a decision to which this Act applies is made to provide correlative relief for economic double taxation if:
(a) there is a double tax agreement applying to Australia and one of the following (a treaty partner ):
(i) a foreign country or a constituent part of a foreign country;
(ii) an overseas territory; and
(b) the treaty partner taxes profits, or purports to tax profits, in accordance with, or consistent with the principles of:
(i) if the treaty partner is the United Kingdom--Article 9 of the United Kingdom convention (within the meaning of the International Tax Agreements Act 1953 ); or
(ii) otherwise--a corresponding provision of another double tax agreement; and
Note: Article 9 of the United Kingdom convention deals with profits of associated enterprises.
(c) the decision is made in giving effect to subsection 24(3) of that Act.
(2) For the purposes of this Act, a decision to which this Act applies is also made to provide correlative relief in respect of the taxing of an amount under a law of a foreign country (the primary foreign country ) if:
(a) there is no double tax agreement applying to Australia and the primary foreign country; and
(b) a provision of a double tax agreement applying to Australia and a foreign country other than the primary foreign country has been prescribed, or the manner of operation of a provision of such an agreement has been prescribed, for the purposes of this paragraph; and
(c) the decision is made in circumstances that would enable effect to be given to the provision mentioned in paragraph (b), or to that provision in its operation in the prescribed manner, as a result of the taxing of the amount under the law of the primary foreign country, if the double tax agreement had instead applied to Australia and the primary foreign country.