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Australia Publishes Synthesized Text of Tax Treaty with Canada as Impacted by BEPS MLI — Orbitax Tax News & Alerts

The Australian Taxation Office (ATO) has published the synthesized text of the 1980 tax treaty with Canada as impacted by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI). The synthesized text was prepared on the basis of the reservations and notifications (MLI positions) provided by Australia and Canada on the date of deposit of their MLI ratification instruments. The sole purpose of the text is to facilitate the understanding of the application of the MLI to the Agreement and it does not constitute a source of law. The authentic legal texts of the Agreement and the MLI take precedence and remain the legal texts applicable.

The provisions of the MLI (other than Article 16 Mutual Agreement Procedure and Part VI Arbitration) have effect with respect to the treaty:

  • with respect to taxes withheld at source on amounts paid or credited to non-residents, where the event giving rise to such taxes occurs on or after 1 January 2020; and
  • with respect to all other taxes levied by each Contracting State, for taxes levied with respect to taxable periods beginning on or after 1 June 2020.

Article 16 of the MLI (Mutual Agreement Procedure) has effect with respect to the treaty for a case presented to the competent authority of a Contracting State on or after 1 December 2019, except for cases that were not eligible to be presented as of that date under the treaty prior to its modification by the MLI, without regard to the taxable period to which the case relates.

The provisions of Part VI (Arbitration) of the MLI have effect with respect to cases presented to the competent authority of a Contracting State on or after 1 December 2019. Subject to certain conditions, the provisions may also apply for cases presented prior to 1 December 2019 if agreed to by the competent authorities.

Click the following link for the ATO's webpage on the BEPS MLI for more information.