2004-2005-2006-2007

The Parliament of the
Commonwealth of Australia

HOUSE OF REPRESENTATIVES



Presented and read a first time




International Tax Agreements
Amendment Bill (No. 1) 2007
No.           , 2007
(Treasury)




A Bill for an Act to amend the International Tax
Agreements Act 1953, and for related purposes


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             1       Short title ........................................................................................... 1
             2       Commencement ................................................................................. 1
             3       Schedule(s) ........................................................................................ 1

Schedule 1--The 2006 French convention                                                                                      3
       International Tax Agreements Act 1953                                                                                3

Schedule 2--The 2006 Norwegian convention                                                                                 55
       International Tax Agreements Act 1953                                                                              55


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 1

     Agreements Act 1953, and for related purposes
 2


     The Parliament of Australia enacts:
 3


     1 Short title
 4

                This Act may be cited as the International Tax Agreements
 5
                Amendment Act (No. 1) 2007.
 6


     2 Commencement
 7

                This Act commences on the day on which it receives the Royal
 8
                Assent.
 9


     3 Schedule(s)
10

                Each Act that is specified in a Schedule to this Act is amended or
11
                repealed as set out in the applicable items in the Schedule
12




               International Tax Agreements Amendment Bill (No. 1) 2007   No.   , 2007   1


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1
    according to its terms.
2


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     Schedule 1--The 2006 French convention
 2
 3


     International Tax Agreements Act 1953
 4


     1 Subsection 3(1) (after paragraph (bb) of the definition of
 5
          agreement)
 6

           Insert:
 7
                (bc) the 1969 French airline profits agreement;
 8
                (bd) the 1976 French agreement;
 9
                (be) the 1976 French agreement as amended by the 1989 French
10
                     protocol;
11


     2 Subsection 3(1)
12

           Insert:
13

                the 1969 French airline profits agreement means the Agreement
14
                between the Government of Australia and the Government of the
15
                French Republic for the avoidance of double taxation of income
16
                derived from international air transport that was signed at Canberra
17
                on 27 March 1969.
18


     3 Subsection 3(1)
19

           Insert:
20

                the 1976 French agreement means the Agreement between the
21
                Government of Australia and the Government of the French
22
                Republic for the avoidance of double taxation and the prevention
23
                of fiscal evasion with respect to taxes on income that was signed at
24
                Canberra on 13 April 1976.
25


     4 Subsection 3(1)
26

           Insert:
27

                the 1989 French protocol means the Protocol, signed at Paris on
28
                19 June 1989, between the Government of Australia and the
29
                Government of the French Republic amending the 1976 French
30
                agreement.
31


     5 Subsection 3(1)
32


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                the 2006 French convention means the Convention between the
 2
                Government of Australia and the Government of the French
 3
                Republic for the avoidance of double taxation with respect to taxes
 4
                on income and the prevention of fiscal evasion and the protocol to
 5
                that convention, being the convention and protocol a copy of each
 6
                of which in the English language is set out in Schedule 11.
 7


     6 Subsection 3(1) (definition of the French agreement)
 8

           Repeal the definition.
 9


     7 Subsection 3(1) (definition of the French airline profits
10
          agreement)
11

           Repeal the definition.
12


     8 Subsection 3(1) (definition of the French protocol)
13

           Repeal the definition.
14


     9 Subsection 3(7)
15

           Omit "French agreement", substitute "1976 French agreement, the 2006
16
           French convention".
17


     10 Sections 9, 9A and 9B
18

           Repeal the sections, substitute:
19


     9 The 2006 French convention
20

                Subject to this Act, on and after the date of entry into force of a
21
                provision of the 2006 French convention, the provision has the
22
                force of law according to its tenor.
23


     9A Previous French agreements etc.
24

                The provisions of:
25
                 (a) the 1969 French airline profits agreement; and
26
                 (b) the 1976 French agreement; and
27
                 (c) the 1976 French agreement as amended by the 1989 French
28
                     protocol;
29


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                  the force of law for tax in respect of income in relation to which
 2
                  the agreements remain effective.
 3

                  Note 1:     Paragraph 3 of Article 30 of the 2006 French convention preserves the
 4
                              operation of Article 19 of the 1976 French agreement (which provides
 5
                              that the income received in respect of teaching or conducting research
 6
                              by visiting professors and teachers is taxed only in their home
 7
                              country). This applies to individuals who are entitled to the benefit at
 8
                              the time when the 2006 French convention enters into force. The
 9
                              benefit is preserved until the individual concerned would have ceased
10
                              to be entitled to it under the 1976 French agreement.
11
                  Note 2:     Article 19 of the 1976 French agreement is affected by Article 8 of the
12
                              1989 French protocol.
13


     11 Schedule 7
14

             Repeal the Schedule.
15


     12 Schedules 11 and 11A
16

             Repeal the Schedules, substitute:
17

     Schedule 11--2006 French convention
18

     Note:   See section 3.
19
20
21
22
     CONVENTION BETWEEN THE GOVERNMENT OF AUSTRALIA AND
23
     THE GOVERNMENT OF THE FRENCH REPUBLIC FOR THE
24
     AVOIDANCE OF DOUBLE TAXATION WITH RESPECT TO TAXES ON
25
     INCOME AND THE PREVENTION OF FISCAL EVASION
26

27


28


     The Government of Australia and the Government of the French Republic,
29


     Desiring to conclude a Convention for the avoidance of double taxation with
30

     respect to taxes on income and the prevention of fiscal evasion,
31


     Have agreed as follows:
32


33


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                                           Article 1
 2


                                   PERSONS COVERED
 3


             This Convention shall apply to persons who are residents of one or both
 4

     of the Contracting States.
 5


 6


 7


                                           Article 2
 8


                                     TAXES COVERED
 9


     1.      The existing taxes to which this Convention shall apply are :
10


           a)     in the case of Australia:
11


                  the income tax, and the resource rent tax in respect of offshore
12

                  projects relating to exploration for or exploitation of petroleum
13

                  resources, imposed under the federal law of Australia;
14


           b)     in the case of France:
15


                  (i)     the income tax ("l'impôt sur le revenu");
16


                  (ii)    the corporation tax ("l'impôt sur les sociétés");
17


                  (iii)   the additional taxes on corporations ("les contributions sur
18

                          l'impôt sur les sociétés"); and
19


                  (iv)    widespread social security contributions ("contributions
20

                          sociales généralisées") and contributions for the
21


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                           remboursement de la dette sociale"), including any
 2

                           withholding tax with respect to the aforesaid taxes.
 3


     2.       This Convention shall also apply to any identical or substantially
 4

     similar taxes which are subsequently imposed by a Contracting State in addition
 5

     to, or in place of the existing taxes to which this Convention applies. The
 6

     competent authorities of the Contracting States shall notify each other of
 7

     significant changes which have been made in their law relating to taxes to
 8

     which this Convention applies.
 9


     3.       Notwithstanding paragraphs 1 and 2, the taxes to which Articles 25 and
10

     26 shall apply are:
11


     a) in the case of Australia, taxes of every kind and description imposed under
12

          the federal taxes laws administered by the Commissioner of Taxation ; and
13


     b) in the case of France, taxes of every kind and description imposed on behalf
14

          of France or its political subdivisions or local authorities
15


16


17


                                            Article 3
18


                                        DEFINITIONS
19


     1.       For the purposes of this Convention, unless the context otherwise
20

              requires:
21


            a)     the term "Australia", when used in a geographical sense, excludes
22

                   all external territories other than:
23


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          (ii)    the Territory of Christmas Island;
 2


          (iii)   the Territory of Cocos (Keeling) Islands;
 3


          (iv)    the Territory of Ashmore and Cartier Islands;
 4


          (v)     the Territory of Heard Island and McDonald Islands; and
 5


          (vi)    the Coral Sea Islands Territory,
 6


          and includes any area adjacent to the territorial limits of Australia
 7

          (including the Territories specified in this subparagraph) in respect
 8

          of which there is for the time being in force, consistently with
 9

          international law, a law of Australia dealing with the exploration
10

          for or exploitation of any of the natural resources of the seabed and
11

          subsoil of the continental shelf;
12


     b)   the term "France" means the European and Overseas Departments
13

          of the French Republic including the territorial sea, and any area
14

          outside the territorial sea within which, in accordance with
15

          international law, the French Republic has sovereign rights for the
16

          purpose of exploring and exploiting the natural resources of the
17

          seabed and its subsoil and the superjacent waters;
18


     c)   the terms "Contracting State", "a Contracting State" and "the other
19

          Contracting State" mean Australia or France, as the context
20

          requires;
21


     d)   the term "person" includes an individual, a company and any other
22

          body of persons;
23


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          is treated as a company or body corporate for tax purposes;
 2


     f)   the term "enterprise" applies to the carrying on of any business;
 3


     g)   the terms "enterprise of a Contracting State" and "enterprise of the
 4

          other Contracting State" mean respectively an enterprise carried on
 5

          by a resident of a Contracting State and an enterprise carried on by
 6

          a resident of the other Contracting State;
 7


     h)   the term "Australian tax" means tax imposed by Australia, being
 8

          tax to which this Convention applies by virtue of paragraphs 1 and
 9

          2 of Article 2;
10


     i)   the term "French tax" means tax imposed by France, being tax to
11

          which this Convention applies by virtue of paragraphs 1 and 2 of
12

          Article 2;
13


     j)   the term "competent authority" means in the case of Australia, the
14

          Commissioner of Taxation or an authorised representative of the
15

          Commissioner and in the case of France, the minister in charge of
16

          the budget or an authorised representative of the minister;
17


     k)   the term "business" includes the performance of professional
18

          services and of other activities of an independent character;
19


     l)   the term "international traffic" means any transport by a ship or
20

          aircraft operated by an enterprise of a Contracting State, except
21

          when the ship or aircraft is operated solely from a place or between
22

          places in the other Contracting State.
23


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     include any penalty or interest imposed under the law of either Contracting
 2

     State relating to the taxes referred to in Article 2.
 3


     3.      As regards the application of the Convention at any time by a
 4

     Contracting State, any term not defined therein shall, unless the context
 5

     otherwise requires, have the meaning that it has at that time under the law of
 6

     that State concerning the taxes to which the Convention applies, any meaning
 7

     under the applicable tax law of that State prevailing over a meaning given to the
 8

     term under other law of that State.
 9


10


11


                                           Article 4
12


                                         RESIDENCE
13


     1.      For the purposes of this Convention, the term "resident of a Contracting
14

     State" means:
15


           a)      in the case of Australia, a person who is a resident of Australia for
16

                   the purposes of Australian tax; and
17


           b)      in the case of France, a person who is domiciled in France for the
18

                   purposes of French tax.
19


     A Contracting State or a political subdivision or statutory body or a local
20

     authority thereof is also a resident of that State for the purposes of this
21

     Convention.
22


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     Convention if the person is liable to tax in that State in respect only of income
 2

     from sources in that State.
 3


     3.      Where by reason of the preceding provisions of this Article a person,
 4

     being an individual, is a resident of both Contracting States, the person's status
 5

     shall be determined as follows:
 6


           a)     the individual shall be deemed to be a resident only of the State in
 7

                  which a permanent home is available to that individual; but if a
 8

                  permanent home is available in both States, or in neither of them,
 9

                  that individual shall be deemed to be a resident only of the State
10

                  with which the individual's personal and economic relations are
11

                  closer (centre of vital interests);
12


           b)     if the State in which the centre of vital interests is situated cannot
13

                  be determined, the individual shall be deemed to be a resident only
14

                  of the State of which that individual is a national or citizen.
15


     4.    Where by reason of the provisions of paragraph 1 a person other than an
16

           individual is a resident of both Contracting States, it shall be deemed to
17

           be a resident solely of the Contracting State in which its place of effective
18

           management is situated.
19


     5.      The term "resident of a Contracting State" shall include, where that
20

     State is France, any partnership or group of persons which has its place of
21

     effective management in France and all partners, shareholders or other members
22

     of which are personally liable to tax therein in respect of their part of the profits
23

     of those partnerships or groups of persons pursuant to French domestic laws.
24


25


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                                            Article 5
 2


                             PERMANENT ESTABLISHMENT
 3


     1.         For the purposes of this Convention, the term "permanent
 4

     establishment" means a fixed place of business through which the business of
 5

     the enterprise is wholly or partly carried on.
 6


     2.         The term "permanent establishment" shall include especially:
 7


           a)       a place of management;
 8


           b)       a branch;
 9


           c)       an office;
10


           d)       a factory;
11


           e)       a workshop;
12


           f)       a mine, quarry or other place of extraction of natural resources; and
13


           g)       an agricultural, pastoral or forestry property.
14


     3.         An enterprise shall not be deemed to have a permanent establishment
15

     merely by reason of:
16


           a)       the use of facilities solely for the purpose of storage, display or
17

                    delivery of goods or merchandise belonging to the enterprise;
18


           b)       the maintenance of a stock of goods or merchandise belonging to
19

                    the enterprise solely for the purpose of storage, display or delivery;
20


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                 the enterprise solely for the purpose of processing by another
 2

                 enterprise;
 3


           d)    the maintenance of a fixed place of business solely for the purpose
 4

                 of purchasing goods or merchandise, or for collecting information,
 5

                 for the enterprise;
 6


           e)    the maintenance of a fixed place of business solely for the purpose
 7

                 of activities which have a preparatory or auxiliary character for the
 8

                 enterprise, such as advertising or scientific research.
 9


     4.      An enterprise shall be deemed to have a permanent establishment in a
10

     Contracting State and to carry on business through that permanent establishment
11

     if:
12


           a)    it has a building site or construction, installation or assembly
13

                 project in that State which exists for more than twelve months; or
14


           b)    it carries on supervisory activities in that State for more than six
15

                 months in connection with a building site, or a construction,
16

                 installation or assembly project which is being undertaken in that
17

                 State; or
18


           c)    it maintains substantial equipment for rental or other purposes
19

                 within that State (excluding equipment let under a hire-purchase
20

                 agreement) for more than six months.
21


     5.    a)    The duration of activities under subparagraphs a) and b) of
22

                 paragraph 4 will be determined by aggregating the periods during
23

                 which activities are carried on in a Contracting State by associated
24

                 enterprises provided that the activities of the enterprise in that State
25


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                  associate.
 2


           b)     The period during which two or more associated enterprises are
 3

                  carrying on concurrent activities will be counted only once for the
 4

                  purpose of determining the duration of activities.
 5


           c)     For the purposes of this Article, an enterprise shall be deemed to be
 6

                  associated with another enterprise if:
 7


                  (i)    one is controlled directly or indirectly by the other ; or
 8


                  (ii)   both are controlled directly or indirectly by the same person
 9

                         or persons.
10


     6.      A person acting in a Contracting State on behalf of an enterprise of the
11

     other Contracting State - other than an agent of an independent status to whom
12

     paragraph 7 applies - shall be deemed to be a permanent establishment of that
13

     enterprise in the first-mentioned State if:
14


           a)     the person has, and habitually exercises in that State, an authority
15

                  to conclude contracts on behalf of the enterprise, unless the
16

                  person's activities are limited to the purchase of goods or
17

                  merchandise for the enterprise; or
18


           b)     in so acting the person manufactures or processes in that State for
19

                  the enterprise goods or merchandise belonging to the enterprise.
20


     7.      An enterprise of a Contracting State shall not be deemed to have a
21

     permanent establishment in the other Contracting State merely because it carries
22

     on business in that other State through a broker, general commission agent or
23


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     ordinary course of the person's business as such a broker or agent.
 2


     8.      The fact that a company which is a resident of a Contracting State
 3

     controls or is controlled by a company which is a resident of the other
 4

     Contracting State, or which carries on business in that other State (whether
 5

     through a permanent establishment or otherwise), shall not of itself make either
 6

     company a permanent establishment of the other.
 7


     9.      The principles set forth in the preceding paragraphs of this Article shall
 8

     be applied in determining for the purposes of paragraph 7 of Article 11 and
 9

     paragraph 5 of Article 12 whether there is a permanent establishment outside
10

     both Contracting States, and whether an enterprise, not being an enterprise of a
11

     Contracting State, has a permanent establishment in a Contracting State.
12


13


14


                                          Article 6
15


                           INCOME FROM REAL PROPERTY
16


     1.      Income from real property, including income from an agricultural,
17

     pastoral or forestry property, may be taxed in the Contracting State in which
18

     that property is situated.
19


     2.      For the purposes of this Article, the term "real property":
20


           a)     in the case of Australia, has the meaning which it has under the law
21

                  of Australia, and shall also include:
22


                  (i)    a lease of land and any other interest in or over land, whether
23

                         improved or not including a right to explore for mineral, oil
24


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                          those deposits or resources; and
 2


                  (ii)    a right to receive variable or fixed payments either as
 3

                          consideration for or in respect of the exploitation of, or the
 4

                          right to explore for or exploit, mineral, oil or gas deposits,
 5

                          quarries or other places of extraction or exploitation of
 6

                          natural resources; and
 7


           b)     in the case of France, means such property which, according to the
 8

                  law of France, is immovable property and shall in any case include:
 9


                  (i)     property accessory to immovable property;
10


                  (ii)    livestock and equipment used in agriculture and forestry;
11


                  (iii)   rights to which the provisions of the general law respecting
12

                          landed property apply; and
13


                  (iv)    usufruct of immovable property and rights to variable or
14

                          fixed payments as consideration for the working of or the
15

                          right to work mineral deposits, mineral sources and other
16

                          natural resources.
17


     Ships and aircraft shall not be regarded as real property.
18


     3.      The provisions of paragraph 1 shall apply to income derived from the
19

     direct use, letting or use in any other form of real property.
20


     4.      Notwithstanding the provisions of Article 7, where shares or other
21

     rights in a company, trust or comparable institution entitle a person to the
22

     enjoyment of real property of that company, trust or comparable institution,
23


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     of enjoyment may be taxed in the Contracting State in which the real property is
 2

     situated.
 3


     5.      The provisions of paragraphs 1, 3 and 7 shall also apply to income from
 4

     real property of an enterprise.
 5


     6.      The provisions of paragraph 4 shall also apply to income of an
 6

     enterprise derived from the direct use, letting or use in any other form of a right
 7

     of enjoyment referred to in that paragraph.
 8


     7.      Any interest or right referred to in paragraph 2 or 4 shall be regarded as
 9

     situated where the buildings, land, mineral, oil or gas deposits, quarries, mineral
10

     sources or natural resources, as the case may be, are situated or where the
11

     exploration may take place.
12


13


14


                                          Article 7
15


                                   BUSINESS PROFITS
16


     1.      The profits of an enterprise of a Contracting State shall be taxable only
17

     in that State unless the enterprise carries on business in the other Contracting
18

     State through a permanent establishment situated therein. If the enterprise
19

     carries on business as aforesaid, the profits of the enterprise may be taxed in the
20

     other State but only so much of them as is attributable to that permanent
21

     establishment.
22


     2.      Where an enterprise of a Contracting State carries on business in the
23

     other Contracting State through a permanent establishment situated therein,
24


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     establishment the profits which it might be expected to make if it were a distinct
 2

     and separate enterprise engaged in the same or similar activities under the same
 3

     or similar conditions and dealing wholly independently with the enterprise of
 4

     which it is a permanent establishment.
 5


     3.      In the determination of the profits of a permanent establishment there
 6

     shall be allowed as deductions expenses of the enterprise, including executive
 7

     and general administrative expenses, which are deductible according to the law
 8

     of the State in which the permanent establishment is situated whether incurred
 9

     in that State or elsewhere.
10


     4.      If the information available to the competent authority of a Contracting
11

     State is inadequate to determine the profits to be attributed to the permanent
12

     establishment of an enterprise, the competent authority may apply to that
13

     enterprise for that purpose the provisions of the taxation law of that State,
14

     provided that that law shall be applied, so far as the information available to the
15

     competent authority permits, in accordance with the principles of this Article.
16


     5.      No profits shall be attributed to a permanent establishment by reason of
17

     the mere purchase by that permanent establishment of goods or merchandise for
18

     the enterprise.
19


     6.      Where profits include items of income which are dealt with separately
20

     in other Articles of this Convention, then the provisions of those Articles shall
21

     not be affected by the provisions of this Article.
22


     7.      Notwithstanding the preceding provisions of this Article, profits of an
23

     enterprise of a Contracting State from carrying on a business of any form of
24

     insurance other than life insurance may be taxed in the other Contracting State
25

     in accordance with the law of that other State relating specifically to the
26


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     in force in either Contracting State at the date of signature of this Convention
 2

     relating to the taxation of such a person is varied (otherwise than in minor
 3

     respects so as not to affect its general character), the Contracting States shall
 4

     consult with each other with a view to agreeing to such amendment of this
 5

     paragraph as may be necessary.
 6


     8.      Where:
 7


           a)     a resident of a Contracting State is beneficially entitled, whether
 8

                  directly or through one or more interposed trust estates, to a share
 9

                  of the business profits of an enterprise carried on in the other
10

                  Contracting State by the trustee of a trust estate other than a trust
11

                  estate which is treated as a company for tax purposes; and
12


           b)     in relation to that enterprise, that trustee would, in accordance with
13

                  the principles of Article 5, have a permanent establishment in that
14

                  other State,
15


     the enterprise carried on by the trustee shall be deemed to be a business carried
16

     on in the other State by that resident through a permanent establishment situated
17

     in that other State and that share of business profits shall be attributed to that
18

     permanent establishment.
19


20


21


                                           Article 8
22


                                  SHIPS AND AIRCRAFT
23


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     operation of ships or aircraft in international traffic shall be taxable only in that
 2

     State.
 3


     2.       Notwithstanding the provisions of paragraph 1, profits of an enterprise
 4

     of a Contracting State derived from the operation of ships or aircraft may be
 5

     taxed in the other Contracting State to the extent that they are profits derived
 6

     directly or indirectly from ship or aircraft operations confined solely to places in
 7

     that other State.
 8


     3.       The amount which shall be charged to tax in a Contracting State under
 9

     paragraph 2 in respect of transport operations of ships shall not exceed 5 per
10

     cent of the amount paid or payable (net of rebates) in respect of carriage.
11


     4.       The provisions of paragraph 3 shall not apply to profits from the
12

     operation of ships, where the profits are attributable to a permanent
13

     establishment of the enterprise situated in the other Contracting State.
14


     5.       The profits to which the provisions of paragraphs 1 and 2 apply include
15

     profits from the operation of ships or aircraft derived through participation in a
16

     pool service or other profit sharing arrangement.
17


     6.       For the purposes of this Article, profits derived from the carriage by
18

     ships or aircraft of passengers, livestock, mail, goods or merchandise which are
19

     shipped in a Contracting State and are discharged at a place in that State
20

     (without having been discharged outside that State) shall be treated as profits
21

     from ship or aircraft operations confined solely to places in that State.
22


23


24


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                               ASSOCIATED ENTERPRISES
 2


     1.    Where:
 3


           a)       an enterprise of a Contracting State participates directly or
 4

                    indirectly in the management, control or capital of an enterprise of
 5

                    the other Contracting State; or
 6


           b)       the same persons participate directly or indirectly in the
 7

                    management, control or capital of an enterprise of a Contracting
 8

                    State and an enterprise of the other Contracting State,
 9


     and in either case conditions exist between the two enterprises in their
10

     commercial or financial relations which differ from those which may be
11

     expected between independent enterprises dealing wholly independently with
12

     one another, then any profits which might, but for those conditions, be expected
13

     to accrue to one of the enterprises, but, by reason of those conditions, have not
14

     so accrued, may be included in the profits of that enterprise and taxed
15

     accordingly.
16


     2.      If the information available to the competent authority of a Contracting
17

     State is inadequate to determine the profits to be attributed to an enterprise, the
18

     competent authority may apply to that enterprise for that purpose the provisions
19

     of the taxation law of that State, provided that that law shall be applied, so far as
20

     the information available to the competent authority permits, in accordance with
21

     the principles of this Article.
22


     3.      Where, according to the provisions of paragraphs 1 and 2, profits are
23

     included by a Contracting State in the profits of an enterprise, the other
24

     Contracting State shall, on a claim being made by the other enterprise
25

     concerned, consistently with its law consider the inclusion so made and the
26


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     which the other State determines to be profits which, but for the particular
 2

     conditions referred to in paragraphs 1 and 2, might have been expected to
 3

     accrue to the first-mentioned enterprise.
 4


 5


 6


                                           Article 10
 7


                                         DIVIDENDS
 8


     1.      Dividends paid by a company which is a resident of a Contracting State
 9

     for the purposes of its tax, being dividends beneficially owned by a resident of
10

     the other Contracting State may be taxed in that other State.
11


     2.      However, those dividends may also be taxed in the Contracting State of
12

     which the company paying the dividends is a resident for the purposes of its tax,
13

     and according to the law of that State, but the tax so charged shall not exceed:
14


           a)     0 per cent where those dividends are paid out of profits that have
15

                  borne the normal rate of company tax and those dividends are paid
16

                  to a company which, in the case of Australia, holds directly at least
17

                  10 per cent of the voting power of the company paying the
18

                  dividends, or in the case of France, holds directly at least 10 per
19

                  cent of the capital of the company paying the dividends; and
20


           b)     5 per cent of the gross amount of other dividends, if the beneficial
21

                  owner of those dividends is a company which, in the case of
22

                  Australia, holds directly at least 10 per cent of the voting power of
23

                  the company paying the dividends, or in the case of France, holds
24


[Page Break]

 1

                    the dividends; and
 2


           c)       15 per cent of the gross amount of the dividends in all other cases,
 3


     provided that if the relevant law in either Contracting State at the date of
 4

     signature of this Convention is varied otherwise than in minor respects so as not
 5

     to affect its general character, the Contracting States shall consult each other
 6

     with a view to agreeing to any amendment of this paragraph that may be
 7

     appropriate.
 8


     3.      The term "dividends" as used in this Article means income from shares
 9

     or other rights, not being debt-claims, participating in profits, as well as other
10

     amounts which are subjected to the same taxation treatment as a distribution or
11

     dividend by the law of the State of which the company making the distribution
12

     is a resident for the purposes of its tax.
13


     4.      The provisions of paragraphs 1 and 2 shall not apply if the beneficial
14

     owner of the dividends, being a resident of a Contracting State, carries on
15

     business in the other Contracting State of which the company paying the
16

     dividends is a resident, through a permanent establishment situated in that other
17

     State, and the holding in respect of which the dividends are paid is effectively
18

     connected with that permanent establishment. In such case, the provisions of
19

     Article 7 shall apply.
20


     5.      Where a company which is a resident of a Contracting State derives
21

     profits or income from the other Contracting State, that other State may not
22

     impose any tax on the dividends paid by the company--being dividends
23

     beneficially owned by a person who is not a resident of the other Contracting
24

     State--except insofar as the holding in respect of which such dividends are paid
25

     is effectively connected with a permanent establishment situated in that other
26


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 1

     arising in such other State. This paragraph shall not apply in relation to
 2

     dividends paid by any company which is a resident of Australia for the purposes
 3

     of Australian tax and which is also a resident of France for the purposes of
 4

     French tax.
 5


 6


 7


                                          Article 11
 8


                                         INTEREST
 9


     1.      Interest arising in a Contracting State and beneficially owned by a
10

     resident of the other Contracting State may be taxed in that other State.
11


     2.      However, that interest may also be taxed in the Contracting State in
12

     which it arises, and according to the law of that State, but the tax so charged
13

     shall not exceed 10 per cent of the gross amount of the interest.
14


     3.      Notwithstanding paragraph 2, interest arising in a Contracting State and
15

     beneficially owned by a resident of the other Contracting State may not be taxed
16

     in the first-mentioned State if:
17


           a)      the interest is derived from the investment of official reserve assets
18

                   by the government of a Contracting State or a political subdivision
19

                   or local authority thereof, its monetary institutions or a bank
20

                   performing central banking functions in that State; or
21


           b)      the interest is derived by a financial institution which is unrelated
22

                   to and dealing wholly independently with the payer. For the
23

                   purposes of this Article, the term "financial institution" means a
24


[Page Break]

 1

                  debt finance in the financial markets or by taking deposits at
 2

                  interest and using those funds in carrying on a business of
 3

                  providing finance.
 4


     4.       Notwithstanding paragraph 3, interest referred to in subparagraph b) of
 5

     that paragraph may be taxed in the State in which it arises at a rate not
 6

     exceeding 10 per cent of the gross amount of the interest if the interest is paid as
 7

     part of an arrangement involving back-to-back loans or other arrangement that
 8

     is economically equivalent and intended to have a similar effect to back-to-back
 9

     loans.
10


     5.       The term "interest" in this Article includes interest from government
11

     securities or from bonds or debentures, whether or not secured by mortgage and
12

     whether or not carrying a right to participate in profits, interest from any other
13

     form of indebtedness, as well as income which is subjected to the same taxation
14

     treatment as income from money lent by the law of the Contracting State in
15

     which the income arises. Penalty charges for late payment shall not be regarded
16

     as interest for the purpose of this Article.
17


     6.       The provisions of paragraphs 1 and 2, subparagraph b) of paragraph 3
18

     and paragraph 4 of this Article shall not apply if the beneficial owner of the
19

     interest, being a resident of a Contracting State, carries on business in the other
20

     Contracting State in which the interest arises, through a permanent
21

     establishment situated in that other State, and the indebtedness in respect of
22

     which the interest is paid is effectively connected with that permanent
23

     establishment. In such case the provisions of Article 7 shall apply.
24


     7.       Interest shall be deemed to arise in a Contracting State when the payer
25

     is a resident of that State for the purposes of its tax. Where, however, the person
26

     paying the interest, whether the person is a resident of a Contracting State or
27


[Page Break]

 1

     establishment in connection with which the indebtedness on which the interest
 2

     is paid was incurred, and such interest is borne by such permanent
 3

     establishment, then such interest shall be deemed to arise in the State in which
 4

     the permanent establishment is situated.
 5


     8.      Where, by reason of a special relationship between the payer and the
 6

     beneficial owner of the interest, or between both of them and some other
 7

     person, the amount of the interest paid, having regard to the indebtedness for
 8

     which it is paid, exceeds the amount which might reasonably have been
 9

     expected to have been agreed upon by the payer and the beneficial owner in the
10

     absence of that relationship, the provisions of this Article shall apply only to the
11

     last-mentioned amount. In such case, the excess part of the payments shall
12

     remain taxable according to the law of each Contracting State, due regard being
13

     had to the other provisions of this Convention.
14


15


16


                                          Article 12
17


                                       ROYALTIES
18


     1.      Royalties arising in a Contracting State and beneficially owned by a
19

     resident of the other Contracting State may be taxed in that other State.
20


     2.      However, those royalties may also be taxed in the Contracting State in
21

     which they arise, and according to the law of that State, but the tax so charged
22

     shall not exceed 5 per cent of the gross amount of the royalties.
23


[Page Break]

 1

     periodical or not, and however described or computed, to the extent to which
 2

     they are made as consideration for:
 3


           a)     the use of, or the right to use, any copyright, patent, design or
 4

                  model, plan, secret formula or process, trademark or other like
 5

                  property or right; or
 6


           b)     the supply of scientific, technical, industrial or commercial
 7

                  knowledge or information; or
 8


           c)     the supply of any assistance that is ancillary and subsidiary to, and
 9

                  is furnished as a means of enabling the application or enjoyment
10

                  of, any such property or right as is mentioned in subparagraph a) or
11

                  any such knowledge or information as is mentioned in
12

                  subparagraph b); or
13


           d)     the use of, or the right to use:
14


                  (i)    motion picture films; or
15


                  (ii)   films or audio or video tapes or disks, or any other means of
16

                         image or sound reproduction or transmission for use in
17

                         connection with television, radio or other broadcasting; or
18


           e)     total or partial forbearance in respect of the use or supply of any
19

                  property or right referred to in this paragraph.
20


     4.      The provisions of paragraphs 1 and 2 shall not apply if the beneficial
21

     owner of the royalties, being a resident of a Contracting State, carries on
22

     business in the other Contracting State, in which the royalties arise, through a
23

     permanent establishment situated in that other State, and the right or property in
24


[Page Break]

 1

     such permanent establishment. In such case the provisions of Article 7 shall
 2

     apply.
 3


     5.       Royalties shall be deemed to arise in a Contracting State when the payer
 4

     is a resident of that State for the purposes of its tax. Where, however, the person
 5

     paying the royalties, whether the person is a resident of a Contracting State or
 6

     not, has in a Contracting State or outside both Contracting States a permanent
 7

     establishment in connection with which the liability to pay the royalties was
 8

     incurred, and the royalties are borne by the permanent establishment, then such
 9

     royalties shall be deemed to arise in the State in which the permanent
10

     establishment is situated.
11


     6.       Where, by reason of a special relationship between the payer and the
12

     beneficial owner of the royalties, or between both of them and some other
13

     person, the amount of the royalties paid or credited, having regard to what they
14

     are paid or credited for, exceeds the amount which might reasonably have been
15

     expected to have been agreed upon by the payer and the beneficial owner in the
16

     absence of such relationship, the provisions of this Article shall apply only to
17

     the last-mentioned amount. In such case, the excess part of the amount of the
18

     payments or credits shall remain taxable according to the law of each
19

     Contracting State, due regard being had to the other provisions of this
20

     Convention.
21


[Page Break]



                                           Article 13
 2


                               ALIENATION OF PROPERTY
 3


     1.       Income, profits or gains derived by a resident of a Contracting State
 4

     from the alienation of real property situated in the other Contracting State may
 5

     be taxed in that other State.
 6


     2.       Income, profits or gains from the alienation of property, other than real
 7

     property, that forms part of the business property of a permanent establishment
 8

     which an enterprise of a Contracting State has in the other Contracting State,
 9

     including income, profits or gains from the alienation of that permanent
10

     establishment (alone or with the whole enterprise), may be taxed in that other
11

     State.
12


     3.       Income, profits or gains of an enterprise of a Contracting State from the
13

     alienation of ships or aircraft operated by that enterprise in international traffic,
14

     or of property (other than real property) pertaining to the operation of those
15

     ships or aircraft, shall be taxable only in that State.
16


     4.       Income, profits or gains derived by a resident of a Contracting State
17

     from the alienation of any shares or other interests in a company, or of an
18

     interest of any kind in a partnership, trust or other entity, where the value of the
19

     assets of such entity, whether they are held directly or indirectly (including
20

     through one or more interposed entities, such as, for example, through a chain
21

     of companies), is principally attributable to real property situated in the other
22

     Contracting State, may be taxed in that other State.
23


     5. Where an individual who upon ceasing to be a resident of a Contracting
24

     State, is treated under the taxation law of that State as having alienated any
25


[Page Break]

 1

     be treated for the purposes of taxation in the other Contracting State as if the
 2

     individual had, immediately before ceasing to be a resident of the
 3

     first-mentioned State, alienated and reacquired the property for an amount equal
 4

     to its fair market value at that time.
 5


     6. Gains of a capital nature from the alienation of any property, other than that
 6

     referred to in the preceding paragraphs shall be taxable only in the Contracting
 7

     State of which the alienator is a resident.
 8


     7.      In this Article, the term "real property" has the same meaning as it has
 9

     in Article 6.
10


     8.      The situation of real property shall be determined for the purposes of
11

     this Article in accordance with paragraph 7 of Article 6.
12


13


14


                                              Article 14
15


                             INCOME FROM EMPLOYMENT
16


     1.      Subject to the provisions of Articles 15, 17, and 18, remuneration
17

     derived by an individual who is a resident of a Contracting State in respect of an
18

     employment shall be taxable only in that State unless the employment is
19

     exercised in the other Contracting State. If the employment is so exercised, such
20

     remuneration as is derived from that exercise may be taxed in that other State.
21


     2.      Notwithstanding the provisions of paragraph 1, remuneration derived
22

     by an individual who is a resident of a Contracting State in respect of an
23


[Page Break]

 1

     first-mentioned State if:
 2


              a)   the recipient is present in the other State for a period or periods not
 3

                   exceeding in the aggregate 183 days in any twelve month period
 4

                   commencing or ending in the fiscal year of that other State; and
 5


              b)   the remuneration is paid by, or on behalf of, an employer who is
 6

                   not a resident of that other State; and
 7


              c)   the remuneration is not borne by a permanent establishment which
 8

                   the employer has in that other State.
 9


     3.        Notwithstanding the preceding provisions of this Article, remuneration
10

     in respect of an employment exercised aboard a ship or aircraft operated in
11

     international traffic by a resident of a Contracting State may be taxed in that
12

     State.
13


14


[Page Break]



                                          Article 15
 2


                                    DIRECTORS' FEES
 3


             Directors' fees and similar payments derived by a resident of a
 4

     Contracting State in that person's capacity as a member of the board of directors
 5

     of a company which is a resident of the other Contracting State may be taxed in
 6

     that other State.
 7


 8


 9


                                          Article 16
10


                         ENTERTAINERS AND SPORTSPERSONS
11


     1.      Notwithstanding the provisions of Articles 7 and 14, income derived by
12

     entertainers (such as theatre, motion picture, radio or television artists and
13

     musicians) and sports persons from their personal activities as such may be
14

     taxed in the Contracting State in which these activities are exercised.
15


     2.      Where income in respect of personal activities exercised by an
16

     entertainer or sports person in that person's capacity as such accrues not to that
17

     person but to another person, whether a resident of a Contracting State or not,
18

     that income may, notwithstanding the provisions of Articles 7 and 14, be taxed
19

     in the Contracting State in which the activities of the entertainer or sports
20

     person are exercised.
21


22


23


[Page Break]

 1


                                PENSIONS AND ANNUITIES
 2


     1.        Subject to the provisions of paragraph 2 of Article 18, pensions and
 3

     annuities paid to a resident of a Contracting State shall be taxable only in that
 4

     State.
 5


     2.        The term "annuity" means any stated sum payable periodically at stated
 6

     times during life or during a specified or ascertainable period of time under an
 7

     obligation to make the payments in return for adequate and full consideration in
 8

     money or money's worth.
 9


     3.        Notwithstanding anything in this Convention, any pension or allowance
10

     that is paid by a Contracting State in respect of wounds, disabilities or death
11

     caused by war, or in respect of war service, and is exempt from tax under the
12

     law of that State, to a resident of the other Contracting State shall be exempt
13

     from tax in that other State.
14


     4.       a)   Contributions borne by an individual who is a resident of a
15

                   Contracting State, and who renders services in the course of an
16

                   employment in that State, to a pension scheme established and
17

                   recognised for tax purposes in the other Contracting State shall, in
18

                   determining the individual's tax payable, be treated in the
19

                   first-mentioned State in the same way and subject to the same
20

                   conditions and limitations as contributions made to a pension
21

                   scheme that is recognised for tax purposes in that State, provided
22

                   that:
23


                   (i)     the individual was not a resident of that State, and was
24

                           participating in the pension scheme, immediately before
25

                           beginning to exercise employment in that State; and
26


[Page Break]

 1

                      of that State as generally corresponding to a pension scheme
 2

                      recognised as such for tax purposes by that State.
 3


          b)   For the purposes of subparagraph a):
 4


               (i)    the term "a pension scheme" means an arrangement in which
 5

                      the individual participates in order to secure retirement
 6

                      benefits payable in respect of the services referred to in
 7

                      subparagraph a); and
 8


               (ii)   a pension scheme is "recognised for tax purposes" in a State
 9

                      if the contributions to the scheme would qualify for tax relief
10

                      in that State.
11


12


13


                                             Article 18
14


                             GOVERNMENT SERVICE
15


     1.   a)   Salaries, wages and other similar remuneration (other than a
16

               pension or annuity) paid by a Contracting State or a political
17

               subdivision or statutory body or local authority thereof to an
18

               individual in respect of services rendered to that State, subdivision,
19

               body or authority shall be taxable only in that State.
20


          b)   However, such salaries, wages and other similar remuneration shall
21

               be taxable only in the other Contracting State if the services are
22

               rendered in that State and the individual is a resident of, and a
23


[Page Break]

 1

                  of the first-mentioned State.
 2


     2.    a)    Any pension paid by, or out of funds created by, a Contracting State
 3

                 or a political subdivision or statutory body or local authority thereof
 4

                 to an individual in respect of services rendered to that State,
 5

                 subdivision, body or authority shall be taxable only in that State.
 6


           b)     However, such pension shall be taxable only in the other
 7

                  Contracting State if the individual is a resident of, and a national or
 8

                  citizen of, that State and is not also a national or citizen of the
 9

                  first-mentioned State.
10


     3.      The provisions of Articles 14, 15, 16 and 17 shall apply to salaries,
11

     wages and other similar remuneration, or to pensions, in respect of services
12

     rendered in connection with a business carried on by a Contracting State or a
13

     political subdivision or statutory body or local authority thereof.
14


15


16


                                           Article 19
17


                                        STUDENTS
18


             Payments which a student who is, or was immediately before visiting a
19

     Contracting State, a resident of the other Contracting State and who is
20

     temporarily present in the first-mentioned State solely for the purpose of the
21

     student's education receives from sources outside that first-mentioned State for
22

     the purpose of the student's maintenance or education shall not be taxed in that
23

     first-mentioned State.
24


[Page Break]



 2


                                         Article 20
 3


                                       OTHER INCOME
 4


     1.       Items of income of a resident of a Contracting State wherever arising
 5

     which are not dealt with in the foregoing Articles of this Convention shall be
 6

     taxable only in that State.
 7


     2.       The provisions of paragraph 1 shall not apply to income, other than
 8

     income from real property as defined in paragraph 2 of Article 6, derived by a
 9

     resident of a Contracting State who carries on business in the other Contracting
10

     State through a permanent establishment situated therein and the right or
11

     property in respect of which the income is paid is effectively connected with
12

     such permanent establishment. In such case the provisions of Article 7 shall
13

     apply.
14


     3.       Notwithstanding the provisions of paragraphs 1 and 2, items of income
15

     of a resident of a Contracting State not dealt with in the foregoing Articles of
16

     this Convention from sources in the other Contracting State may also be taxed
17

     in the other Contracting State.
18


19


20


                                         Article 21
21


                                   SOURCE OF INCOME
22


     1.       Income, profits or gains derived by a resident of a Contracting State
23

     which, under Articles 6 to 8, 10 to 16 and 18 may be taxed in the other
24


[Page Break]

 1

     State.
 2


     1. Profits included in the profits of an enterprise of a Contracting State under
 3

     paragraph 1 of Article 9 shall for purposes of the taxation of that enterprise be
 4

     deemed to be income of that enterprise derived from sources in that Contracting
 5

     State.
 6


     2. Income, profits or gains derived by a resident of a Contracting State which,
 7

     under any one or more of Articles 6 to 8, 10 to 16 and 18, may be taxed in the
 8

     other Contracting State shall for the purposes of Article 23 and of the law of the
 9

     first-mentioned Contracting State relating to its tax be deemed to arise from
10

     sources in the other Contracting State.
11


12


                                         Article 22
13


                                 RULES OF TAXATION
14


              Where conditions of commercial or financial relations between a person
15

     who is a resident of Australia and a person who is a resident of France differ
16

     from those which may be expected between independent persons dealing wholly
17

     independently with one another, nothing in the Convention shall prevent a
18

     Contracting State, by application of its domestic law, from including in the
19

     profits of such persons and taxing accordingly the profits which, but for those
20

     conditions, might have been expected to have accrued to them.
21


22


23


                                         Article 23
24


[Page Break]

 1


     1.      Subject to the provisions of the law of Australia from time to time in
 2

     force which relate to the allowance of a credit against Australian tax of tax paid
 3

     in a country outside Australia (which shall not affect the general principle of
 4

     this Article), French tax paid under the law of France and in accordance with
 5

     this Convention, whether directly or by deduction, in respect of income derived
 6

     by a person who is a resident of Australia from sources in France shall be
 7

     allowed as a credit against Australian tax payable in respect of that income.
 8


     2.      In the case of France, double taxation shall be avoided in the following
 9

     manner:
10


           a)     Notwithstanding any other provision of this Convention, income
11

                  which may be taxed or shall be taxable only in Australia in
12

                  accordance with the provisions of this Convention shall be taken
13

                  into account for the computation of the French tax where the
14

                  beneficiary of such income is a resident of France and where such
15

                  income is not exempted from corporation tax according to French
16

                  domestic law. In that case, the Australian tax shall not be
17

                  deductible from such income but the resident of France shall,
18

                  subject to the conditions and limits provided for in subparagraph (i)
19

                  and (ii), be entitled to a tax credit against French tax. Such tax
20

                  credit shall be equal:
21


                  (i)    in the case of income other than mentioned in
22

                         subparagraph (ii), to the amount of French tax attributable to
23

                         such income provided that the resident of France is subject
24

                         to Australian tax in respect of such income;
25


                  (ii)   in the case of income referred to in Article 7 and paragraph 2
26

                         of Article 13 which is subject to the corporation tax, and in
27


[Page Break]

 1

                         Article 12, paragraph 1 of Article 13 and paragraph 3 of
 2

                         Article 14, Article 15, Article 16 and Article 20, to the
 3

                         amount of tax paid in Australia in accordance with the
 4

                         provisions of those Articles. However, such tax credit shall
 5

                         not exceed the amount of French tax attributable to such
 6

                         income.
 7


           b)     The term "amount of French tax attributable to such income" as
 8

                  used in subparagraph a) means:
 9


                  (i)    where the tax of such income is computed by applying a
10

                         proportional rate, the amount of the net income concerned
11

                         multiplied by the rate which actually applies to that income;
12


                  (ii)   where the tax on such income is computed by applying a
13

                         progressive scale, the amount of the net income concerned
14

                         multiplied by the rate resulting from the ratio of the tax
15

                         actually payable on the total net income taxable in
16

                         accordance with French law to the amount of that total net
17

                         income.
18


19


20


                                          Article 24
21


                         MUTUAL AGREEMENT PROCEDURE
22


     1.      Where a person considers that the actions of one or both of the
23

     Contracting States result or will result for the person in taxation not in
24

     accordance with this Convention, the person may, irrespective of the remedies
25


[Page Break]

 1

     Convention applies, present a case to the competent authority of the Contracting
 2

     State of which the person is a resident. The case must be presented within 3
 3

     years from the first notification of the action resulting in taxation not in
 4

     accordance with this Convention.
 5


     2.       The competent authority shall endeavour, if the claim appears to it to be
 6

     justified and if it is not itself able to arrive at a satisfactory solution, to resolve
 7

     the case by mutual agreement with the competent authority of the other
 8

     Contracting State, with a view to the avoidance of taxation not in accordance
 9

     with this Convention. The solution so reached shall be implemented
10

     notwithstanding any time limits in the domestic law of the Contracting States.
11


     3.       The competent authorities of the Contracting States shall endeavour to
12

     resolve by mutual agreement any difficulties or doubts arising as to the
13

     interpretation or application of this Convention. In particular, they may consult
14

     together to endeavour to agree to the same allocation of income between
15

     associated enterprises mentioned in Article 9. They may also consult together
16

     for the elimination of double taxation in cases not provided for in the
17

     Convention.
18


     4.       The competent authorities of the Contracting States may communicate
19

     with each other directly for the purpose of reaching an agreement in the sense of
20

     the preceding paragraphs.
21


     5.       For the purposes of paragraph 3 of Article XXII (Consultation) of the
22

     General Agreement on Trade in Services, the Contracting States agree that,
23

     notwithstanding that paragraph, any dispute between them as to whether a
24

     measure falls within the scope of this Convention may be brought before the
25

     Council for Trade in Services, as provided by that paragraph, only with the
26

     consent of both Contracting States. Any doubt as to the interpretation of this
27


[Page Break]

 1

     agreement under that procedure, pursuant to any other procedure agreed to by
 2

     both Contracting States.
 3


 4


 5


                                          Article 25
 6


                            EXCHANGE OF INFORMATION
 7


     1.      The competent authorities of the Contracting States shall exchange such
 8

     information as is foreseeably relevant for carrying out the provisions of this
 9

     Convention or to the administration or enforcement of the domestic laws
10

     concerning taxes referred to in paragraph 3 of Article 2 insofar as the taxation
11

     thereunder is not contrary to the Convention. The exchange of information is
12

     not restricted by Article 1.
13


     2.      Any information received under paragraph 1 by a Contracting State
14

     shall be treated as secret in the same manner as information obtained under the
15

     domestic laws of that State and shall be disclosed only to persons or authorities
16

     (including courts and administration bodies) concerned with the assessment or
17

     collection of, the enforcement or prosecution in respect of, the determination of
18

     appeals in relation to the taxes referred to in paragraph 1, or the oversight of the
19

     above. Such persons or authorities shall use the information only for such
20

     purposes. They may disclose the information in public court proceedings or in
21

     judicial decisions.
22


     3.      In no case shall the provisions of paragraphs 1 and 2 be construed so as
23

     to impose on a Contracting State the obligation:
24


[Page Break]

 1

                   administrative practice of that or of the other Contracting State;
 2


           b)      to supply information which is not obtainable by the competent
 3

                   authority under the laws or in the normal course of the
 4

                   administration of that or of the other Contracting State;
 5


           c)      to supply information which would disclose any trade, business,
 6

                   industrial, commercial or professional secret or trade process, or
 7

                   information the disclosure of which would be contrary to public
 8

                   policy (ordre public).
 9


     4.        If information is requested by a Contracting State in accordance with
10

     this Article, the other Contracting State shall use its information gathering
11

     measures to obtain the requested information, even though that other State may
12

     not need such information for its own tax purposes. The obligation contained in
13

     the preceding sentence is subject to the limitations of paragraph 3 except where
14

     such limitations would preclude a Contracting State from supplying information
15

     solely because it has no domestic interest in such information.
16


     5.        In no case shall the provisions of paragraph 3 be construed to permit a
17

     Contracting State to decline to supply information solely because the
18

     information is held by a bank, other financial institution, nominee or person
19

     acting in an agency or a fiduciary capacity or relates to ownership interests in a
20

     person.
21


[Page Break]



                                          Article 26
 2


                              ASSISTANCE IN RECOVERY
 3


     1.      The Contracting States shall lend assistance to each other in the
 4

     collection of revenue claims. This assistance is not restricted by Article 1. The
 5

     competent authorities of the Contracting States may by mutual agreement settle
 6

     the mode of application of this Article.
 7


     2.      The term "revenue claim" as used in this Article means an amount
 8

     owed in respect of taxes referred to in paragraph 3 of Article 2, insofar as the
 9

     taxation thereunder is not contrary to this Convention or any other instrument to
10

     which the Contracting States are parties, as well as interest, administrative
11

     penalties and costs of collection or conservancy related to such amount.
12


     3.      When a revenue claim of a Contracting State is enforceable under the
13

     laws of that State and is owed by a person who, at that time, cannot, under the
14

     laws of that State, prevent its collection, that revenue claim shall, at the request
15

     of the competent authority of that State, be accepted for purposes of collection
16

     by the competent authority of the other Contracting State. That revenue claim
17

     shall be collected by that other State in accordance with the provisions of its
18

     laws applicable to the enforcement and collection of its own taxes as if the
19

     revenue claim were a revenue claim of that other State.
20


     4.      When a revenue claim of a Contracting State is a claim in respect of
21

     which that State may, under its law, take measures of conservancy with a view
22

     to ensure its collection, that revenue claim shall, at the request of the competent
23

     authority of that State, be accepted for purposes of taking measures of
24

     conservancy by the competent authority of the other Contracting State. That
25

     other State shall take measures of conservancy in respect of that revenue claim
26


[Page Break]

 1

     revenue claim of that other State even if, at the time when such measures are
 2

     applied, the revenue claim is not enforceable in the first-mentioned State or is
 3

     owed by a person who has a right to prevent its collection.
 4


     5.      Notwithstanding the provisions of paragraphs 3 and 4, a revenue claim
 5

     accepted by a Contracting State for purposes of paragraph 3 or 4 shall not, in
 6

     that State, be subject to the time limits or accorded any priority applicable to a
 7

     revenue claim under the laws of that State by reason of its nature as such. In
 8

     addition, a revenue claim accepted by a Contracting State for the purposes of
 9

     paragraphs 3 or 4 shall not, in that State, have any priority applicable to that
10

     revenue claim under the laws of the other Contracting State.
11


     6.      Proceedings with respect to the existence, validity or the amount of a
12

     revenue claim of a Contracting State shall not be brought before the courts or
13

     administrative bodies of the other Contracting State.
14


     7.      Where, at any time after a request has been made by a Contracting State
15

     under paragraph 3 or 4 and before the other Contracting State has collected and
16

     remitted the relevant revenue claim to the first-mentioned State, the relevant
17

     revenue claim ceases to be:
18


           a)     in the case of a request under paragraph 3, a revenue claim of the
19

                  first-mentioned State that is enforceable under the laws of that
20

                  State and is owed by a person who, at that time, cannot, under the
21

                  laws of that State, prevent its collection, or
22


           b)     in the case of a request under paragraph 4, a revenue claim of the
23

                  first-mentioned State in respect of which that State may, under its
24

                  laws, take measures of conservancy with a view to ensure its
25

                  collection
26


[Page Break]

 1

     competent authority of the other State of that fact and, at the option of the other
 2

     State, the first-mentioned State shall either suspend or withdraw its request.
 3


     8.      In no case shall the provisions of this Article be construed so as to
 4

     impose on a Contracting State the obligation:
 5


           a)     to carry out administrative measures at variance with the laws and
 6

                  administrative practice of that or of the other Contracting State;
 7


           b)     to carry out measures which would be contrary to public policy
 8

                  (ordre public);
 9


           c)     to provide assistance if the other Contracting State has not pursued
10

                  all reasonable measures of collection or conservancy, as the case
11

                  may be, available under its laws or administrative practice;
12


           d)     to provide assistance in those cases where the administrative
13

                  burden for that State is clearly disproportionate to the benefit to be
14

                  derived by the other Contracting State;
15


           e)     to provide assistance if that State considers that the taxes with
16

                  respect to which assistance is requested are imposed contrary to
17

                  generally accepted taxation principles.
18


19


20


                                         Article 27
21


                    DIPLOMATIC AND CONSULAR PRIVILEGES
22


[Page Break]

 1

     privileges under the general rules of international law or under the provisions of
 2

     special international agreements.
 3


     2.      This Convention shall not apply to international organisations, to organs
 4

     or officials thereof or to persons who are members of a diplomatic or consular
 5

     mission of a third State and who, being present in a Contracting State, are not
 6

     treated in either Contracting State as residents in respect of taxes on income.
 7


 8


 9


                                         Article 28
10


                                    MISCELLANEOUS
11


             Notwithstanding the provisions of subparagraph b) of paragraph 1 of
12

     Article 2 of this Convention, for the purposes of the assessment in respect of the
13

     capital tax ("l'impôt de solidarité sur la fortune") of an individual who is
14

     resident of France and is a citizen of Australia without being a national of
15

     France, property situated outside France which that individual owns on
16

     1 January in each of the five calendar years following that in which the
17

     individual became a resident of France shall not be included in the basis of
18

     assessment of the tax pertaining to each of those five years. If that person ceases
19

     to be a resident of France for a period of at least three years, and then becomes a
20

     resident of France again, property situated outside France which that person
21

     owns on 1st January in each of the five calendar years following that in which
22

     the person became a resident of France again shall not be included in the basis
23

     of assessment of the tax pertaining to each of those five years.
24


[Page Break]



 2


                                            Article 29
 3


                                        PARTNERSHIPS
 4


     1.      In the case of a partnership or similar entity which has its place of
 5

     effective management in Australia and which is treated in Australia as fiscally
 6

     transparent:
 7


           a)       a partner who is a resident of Australia and whose share of the
 8

                    income, profits or gains of the partnership is taxed in Australia in
 9

                    all respects as though such amounts had been derived by the partner
10

                    directly, shall be entitled to the benefits of this Convention with
11

                    respect to their share of such amounts arising in France as though
12

                    the partner had derived such amounts directly;
13


           b)       a partner who is a resident of France :
14


                    (i)    shall be entitled to the benefits of this Convention with
15

                           respect to their share of such income, profits or gains of the
16

                           partnership arising in Australia as though the partner had
17

                           derived such amounts directly; and
18


                    (ii)   shall be taxable in respect of their share of such income,
19

                           profits or gains of the partnership arising in France as though
20

                           the partner had derived such amounts directly but any such
21

                           amounts which are taxed in Australia shall be treated for the
22

                           purpose of paragraph 2 of Article 23 of this Convention as
23

                           arising from sources in Australia.
24


[Page Break]

 1

     in a State other than a Contracting State and which is treated in that third State
 2

     as fiscally transparent, a partner who is a resident of a Contracting State and
 3

     whose share of the income, profits or gains of the partnership is taxed in that
 4

     Contracting State in all respects as though those amounts had been derived
 5

     directly by the partner, shall be entitled to the benefits of this Convention with
 6

     respect to their share of such amounts arising in the other Contracting State as
 7

     though the partner had derived such amounts directly, subject to the following
 8

     conditions:
 9


            a)        the absence of contrary provisions in a taxation convention
10

                      between a Contracting State and the third State; and
11


            b)        the partner's share of the income, profits or gains of the partnership
12

                      is taxed in the same manner, including the nature or source of those
13

                      amounts and the time when those amounts are taxed, as would
14

                      have been the case if the amounts had been derived directly; and
15


            c)        it is possible to exchange information concerning the partnership or
16

                      partners under the terms of a taxation convention between the
17

                      Contracting State in which the income, profits or gains arise and
18

                      the third State.
19


     3.       For the purposes of paragraphs 1 and 2 of this Article, income, profits
20

     or gains shall be deemed to arise in a Contracting State in particular where they
21

     are attributable to a permanent establishment which the partnership or entity has
22

     in that State.
23


     4.       Where, under any provision of this Convention, a partnership or other
24

     group of persons which is a resident of France in accordance with paragraph 5
25

     of Article 4, is entitled to relief from tax in Australia on any income, profits or
26


[Page Break]

 1

     tax any member of the partnership or other group who is a resident of Australia
 2

     on their share of such amounts; but any such amounts shall be treated for the
 3

     purposes of paragraph 1 of Article 23 of this Convention as arising from sources
 4

     in France.
 5


 6


 7


                                           Article 30
 8


                                   ENTRY INTO FORCE
 9


     1.      The Contracting States shall notify each other in writing through the
10

     diplomatic channel of the completion of their domestic requirements for the
11

     entry into force of this Convention. This Convention shall enter into force on
12

     the first day of the second month following the date of receipt of the last
13

     notification, and thereupon the Convention shall have effect:
14


           a)     in the case of Australia:
15


                  (i)    in respect of withholding tax on income that is derived by a
16

                         non-resident, in relation to income derived on or after
17

                         1 January in the calendar year next following the date on
18

                         which the Convention enters into force;
19


                  (ii)   in respect of other Australian tax, in relation to income,
20

                         profits or gains of any year of income beginning on or after
21

                         1 July in the calendar year next following the date on which
22

                         the Convention enters into force;
23


           b)     in the case of France:
24


[Page Break]

 1

                          amounts taxable after the calendar year in which the
 2

                          Convention enters into force;
 3


                  (ii)    in respect of taxes on income which are not withheld at
 4

                          source, for income relating, as the case may be, to any
 5

                          calendar year or accounting period beginning after the
 6

                          calendar year in which the Convention enters into force;
 7


                  (iii)   in respect of the other taxes, for taxation the taxable event of
 8

                          which will occur after the calendar year in which the
 9

                          Convention enters into force.
10


           c)     for purposes of Article 25, from the date of entry into force of this
11

                  Convention ;
12


           d)     notwithstanding the provisions of subparagraphs a) and b), Article
13

                  26 shall have effect from the date agreed in an exchange of notes
14

                  through the diplomatic channel.
15


     2.      The Agreement between the Government of Australia and the
16

     Government of the French Republic for the avoidance of double taxation and
17

     the prevention of fiscal evasion with respect to taxes on income signed in
18

     Canberra on 13 April 1976 (as amended by the Protocol signed in Paris on
19

     19 June 1989) and the Agreement between the Government of the
20

     Commonwealth of Australia and the Government of the French Republic for the
21

     avoidance of double taxation of income derived from international air transport
22

     signed in Canberra on 27 March 1969 shall be terminated and shall cease to
23

     have effect from the dates on which this Convention becomes effective in
24

     accordance with paragraph 1 of this Article.
25


[Page Break]

 1

     who is entitled to the benefits of Article 19 of the Agreement between the
 2

     Government of Australia and the Government of the French Republic for the
 3

     avoidance of double taxation and the prevention of fiscal evasion with respect to
 4

     taxes on income signed in Canberra on 13 April 1976 (as amended by the
 5

     Protocol signed in Paris on 19 June 1989) at the time of the entry into force of
 6

     this Convention shall continue to be entitled to such benefits until such time as
 7

     the individual would have ceased to be entitled to such benefits if the
 8

     Agreement had remained in force.
 9


10


11


                                          Article 31
12


                                      TERMINATION
13


     This Convention shall continue in effect indefinitely, but either Contracting
14

     State may terminate the Convention by giving written notice of termination,
15

     through the diplomatic channel, to the other State at least 6 months before the
16

     end of any calendar year beginning after the expiration of 5 years from the date
17

     of its entry into force and, in that event, the Convention shall cease to be
18

     effective:
19


           a)     in the case of Australia:
20


                  (i)    in respect of withholding tax on income that is derived by a
21

                         non-resident, in relation to income derived on or after
22

                         1 January in the calendar year next following that in which
23

                         the notice of termination is given;
24


[Page Break]

 1

                          profits or gains of any year of income beginning on or after
 2

                          1 July in the calendar year next following that in which the
 3

                          notice of termination is given ;
 4


           b)     in the case of France:
 5


                  (i)     in respect of taxes on income withheld at source, for
 6

                          amounts taxable after the calendar year in which the notice
 7

                          of termination is given ;
 8


                  (ii)    in respect of taxes on income which are not withheld at
 9

                          source, for income relating, as the case may be, to any
10

                          calendar year or accounting period beginning after the
11

                          calendar year in which the notice of termination is given ;
12


                  (iii)     in respect of the other taxes, for taxation the taxable event
13

                            of which will occur after the calendar year in which the
14

                            notice of termination is given.
15


     In witness whereof the undersigned, duly authorised thereto, have signed this
16
     Convention.
17

18

     Done in duplicate at Paris this twentieth day of June two thousand and six in the
19
     English and French languages, both texts being equally authentic.
20


21

     FOR THE GOVERNMENT OF                       FOR THE GOVERNMENT OF
     AUSTRALIA:                                  THE FRENCH REPUBLIC:


     ALEXANDER DOWNER                            PHILIPPE DOUSTE-BLAZY

     [Signatures omitted]
22


[Page Break]


                                         PROTOCOL
 2

 3


 4

     THE GOVERNMENT OF AUSTRALIA AND THE GOVERNMENT OF THE
 5
     FRENCH REPUBLIC
 6
 7
 8

     Have agreed at the signing of the Convention between the two Governments for
 9

     the avoidance of double taxation with respect to taxes on income and the
10

     prevention of fiscal evasion upon the following provisions, which shall form an
11

     integral part of the said Convention (in this Protocol referred to as "the
12

     Convention"):
13


14


     1.      The competent authorities of the Contracting States may settle, jointly
15
     or separately, the mode of application of the Convention.
16


17


     2.      With reference to paragraph 5 of Article 4 (Residence),
18


     where a resident of a third State is a member of such partnership or group that is
19
     not subject to corporation tax in France, the Australian income tax liability in
20
     respect of the member's share of the income, profits or gains of the partnership
21
     or group shall be determined in accordance with Australian domestic law,
22
     including the provisions of any taxation convention between Australia and that
23
     third State, it being understood that such partnership or group shall be treated as
24
     fiscally transparent for the purposes of entitlement to Australian tax benefits
25
     under that convention.
26


27


     3.      With reference to Article 12 (Royalties),
28




                International Tax Agreements Amendment Bill (No. 1) 2007   No.   , 2007   53


[Page Break]

 1
     The provisions of Article 7 of the Convention shall apply to such payments.
 2


 3


     4.      With reference to Article 18 (Government service),
 4


     business activities carried on by a statutory body of a Contracting State include
 5
     activities of that body which are not primarily supported by public funds of that
 6
     State or of one or more political subdivisions or local authorities thereof.
 7


 8


     In witness whereof the undersigned, duly authorised thereto, have signed this
 9
     Convention.
10


11


     Done in duplicate at Paris this twentieth day of June two thousand and six in
12

     the English and French languages, both texts being equally authentic.
13


14

     FOR THE GOVERNMENT OF                     FOR THE GOVERNMENT OF
     AUSTRALIA:                                THE FRENCH REPUBLIC:

     ALEXANDER DOWNER                          PHILIPPE DOUSTE-BLAZY


     [Signatures omitted]
15


[Page Break]


     Schedule 2--The 2006 Norwegian convention
 2
 3


     International Tax Agreements Act 1953
 4


     1 Subsection 3(1) (after paragraph (ca) of the definition of
 5
          agreement)
 6

           Insert:
 7
                (cb) the 1982 Norwegian convention;
 8


     2 Subsection 3(1)
 9

           Insert:
10

                the 1982 Norwegian convention means the Convention between
11
                Australia and the Kingdom of Norway for the avoidance of double
12
                taxation and the prevention of fiscal evasion with respect to taxes
13
                on income and on capital and the protocol to that convention, being
14
                the convention and protocol that were signed at Canberra on 6 May
15
                1982.
16


     3 Subsection 3(1)
17

           Insert:
18

                the 2006 Norwegian convention means the Convention between
19
                Australia and the Kingdom of Norway for the avoidance of double
20
                taxation with respect to taxes on income and the prevention of
21
                fiscal evasion, being the convention a copy of which is set out in
22
                Schedule 23.
23


     4 Subsection 3(1) (definition of the Norwegian convention)
24

           Repeal the definition.
25


     5 Section 11M
26

           Repeal the section, substitute:
27


     11M The 2006 Norwegian convention
28

                Subject to this Act, on and after the date of entry into force of a
29
                provision of the 2006 Norwegian convention, the provision has the
30
                force of law according to its tenor.
31


[Page Break]

 1

                  The provisions of the 1982 Norwegian convention, so far as those
 2
                  provisions affect Australian tax, continue to have the force of law
 3
                  for tax in respect of income in relation to which the convention
 4
                  remains effective.
 5


     6 Schedule 23
 6

             Repeal the Schedule, substitute:
 7

     Schedule 23--2006 Norwegian convention
 8

     Note:   See section 3.
 9
10
11
12
     CONVENTION BETWEEN AUSTRALIA AND THE KINGDOM OF
13
     NORWAY FOR THE AVOIDANCE OF DOUBLE TAXATION WITH
14
     RESPECT TO TAXES ON INCOME AND THE PREVENTION OF
15
     FISCAL EVASION
16


17


           The Government of Australia and the Government of the Kingdom of
18
     Norway,
19

20

             Desiring to conclude a Convention for the avoidance of double taxation
21
     with respect to taxes on income and the prevention of fiscal evasion,
22

23

             Have agreed as follows:
24

25

                                       ARTICLE 1
26

27

                                     Persons Covered
28
29

             This Convention shall apply to persons who are residents of one or both
30
     of the Contracting States.
31

32


[Page Break]

 1

 2

                                      Taxes Covered
 3
 4

     1       The existing taxes to which this Convention shall apply are:
 5

             (a)     in the case of Australia:
 6

                     (i)      the income tax; and
 7

                     (ii)     the resource rent tax in respect of offshore projects
 8
                              relating to exploration for or exploitation of petroleum
 9
                              resources,
10

                     imposed under the federal law of Australia;
11

             (b)     in the case of Norway:
12

                     (i)      the tax on general income;
13

                     (ii)     the tax on personal income;
14

                     (iii)    the special tax on petroleum income;
15

                     (iv)     the resource rent tax on income from production of
16
                              hydro-electric power;
17

                     (v)      the withholding tax on dividends; and
18

                     (vi)     the tax on remuneration to non-resident artistes, etc.
19

20

     2        This Convention shall apply also to any identical or substantially
21
     similar taxes that are imposed under the federal law of Australia or the law of
22
     Norway after the date of signature of this Convention in addition to, or in place
23
     of, the existing taxes. The competent authorities of the Contracting States shall
24
     notify each other of any significant changes that have been made in the law of
25
     their respective States relating to the taxes to which this Convention applies
26
     within a reasonable period of time after those changes.
27

28

     3       For the purposes of Article 24, the taxes to which this Convention shall
29
     apply are taxes of every kind and description imposed on behalf of the
30
     Contracting States, or their political subdivisions or local authorities.
31

32


[Page Break]

 1
     Convention shall apply are:
 2

             (a)     in the case of Australia, taxes of every kind and description
 3
                     imposed under the federal tax laws administered by the
 4
                     Commissioner of Taxation; and
 5

             (b)     in the case of Norway, taxes of every kind and description.
 6

 7

                                       ARTICLE 3
 8

 9

                                   General Definitions
10
11


     1       For the purposes of this Convention, unless the context otherwise
12

     requires:
13


             (a)     the term "Australia", when used in a geographical sense,
14
                     excludes all external territories other than:
15

                     (i)     the Territory of Norfolk Island;
16

                     (ii)    the Territory of Christmas Island;
17

                     (iii)   the Territory of Cocos (Keeling) Islands;
18

                     (iv)    the Territory of Ashmore and Cartier Islands;
19

                     (v)     the Territory of Heard Island and McDonald Islands;
20
                             and
21

                     (vi)    the Coral Sea Islands Territory,
22

                     and includes any area adjacent to the territorial limits of
23
                     Australia (including the Territories specified in this
24
                     subparagraph) in respect of which there is for the time being in
25
                     force, consistently with international law, a law of Australia
26
                     dealing with the exploration for or exploitation of any of the
27
                     natural resources of the seabed and subsoil of the continental
28
                     shelf;
29

             (b)     the term "Norway" means the land territory, internal waters, the
30
                     territorial sea and the area beyond the territorial sea where the
31
                     Kingdom of Norway, according to Norwegian legislation and in
32
                     accordance with international law, may exercise rights with
33


[Page Break]

 1
           terms do not comprise Svalbard, Jan Mayen and the Norwegian
 2
           dependencies ("biland");
 3

     (c)   the terms "Contracting State", "one of the Contracting States"
 4
           and "other Contracting State" shall refer to Australia or
 5
           Norway, as the context requires;
 6

     (d)   the term "Australian tax" means tax imposed by Australia,
 7
           being tax to which this Convention applies by virtue of
 8
           paragraphs 1 and 2 of Article 2;
 9

     (e)   the term "Norwegian tax" means tax imposed by Norway or its
10
           political subdivisions or local authorities, being tax to which
11
           this Convention applies by virtue of paragraphs 1 and 2 of
12
           Article 2;
13

     (f)   the term "business" includes the performance of professional
14
           services and of other activities of an independent character;
15

     (g)   the term "company" means any body corporate or any entity
16
           which is treated as a company or body corporate for tax
17
           purposes;
18

     (h)   the term "competent authority" means, in the case of Australia,
19
           the Commissioner of Taxation or an authorised representative
20
           of the Commissioner and, in the case of Norway, the Minister
21
           of Finance or an authorised representative of the Minister;
22

     (i)   the term "enterprise" applies to the carrying on of any business;
23

     (j)   the terms "enterprise of a Contracting State" and "enterprise of
24
           the other Contracting State" mean respectively an enterprise
25
           carried on by a resident of a Contracting State and an enterprise
26
           carried on by a resident of the other Contracting State;
27

     (k)   the term "international traffic" means any transport by a ship or
28
           aircraft operated by an enterprise of a Contracting State, except
29
           when such transport is solely between places in the other
30
           Contracting State;
31

     (l)   the term "national", in relation to a Contracting State, means:
32

           (i)     any individual possessing the nationality or citizenship
33
                   of that Contracting State; and
34

           (ii)    any company deriving its status as such from the laws
35
                   in force in that Contracting State;
36


[Page Break]

 1
                     other body of persons;
 2

             (n)     the term "tax" means Australian tax or Norwegian tax as the
 3
                     context requires, but does not include any penalty or interest
 4
                     imposed under the law of either Contracting State relating to its
 5
                     tax;
 6

             (o)     the term "recognised stock exchange" means:
 7

                     (i)     the Australian Stock Exchange and any other
 8
                             Australian stock exchange recognised as such under
 9
                             Australian law;
10

                     (ii)    the Oslo Stock Exchange and any other Norwegian
11
                             stock exchange recognised as such under Norwegian
12
                             law; and
13

                     (iii)   any other stock exchange agreed upon by the
14
                             competent authorities.
15

16

     2        As regards the application of the Convention at any time by a
17
     Contracting State, any term not defined therein shall, unless the context
18
     otherwise requires, have the meaning that it has at that time under the law of
19
     that State concerning the taxes to which the Convention applies, any meaning
20
     under the applicable tax law of that State prevailing over a meaning given to the
21
     term under other law of that State.
22

23

                                       ARTICLE 4
24

25

                                        Residence
26
27

     1       For the purposes of this Convention, the term "resident of a Contracting
28
             State" means:
29

             (a)     in the case of Australia, a person who is a resident of Australia
30
                     for the purposes of Australian tax; and
31

             (b)     in the case of Norway, a person who is liable to tax therein by
32
                     reason of domicile, residence, place of management or any
33
                     other criterion of a similar nature.
34


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 1
                   local authority of that State is also a resident of that State for
 2
                   the purposes of the Convention.
 3

 4

     2       A person is not a resident of a Contracting State for the purposes of this
 5
             Convention if the person is liable to tax in that State in respect only of
 6
             income from sources in that State.
 7

 8

     3        Where by reason of the preceding provisions of this Article a person,
 9
     being an individual, is a resident of both Contracting States, then the person's
10
     status shall be determined as follows:
11

             (a)     the individual shall be deemed to be a resident only of the State
12
                     in which a permanent home is available to that individual; but if
13
                     a permanent home is available in both States, or in neither of
14
                     them, that individual shall be deemed to be a resident only of
15
                     the State with which the individual's personal and economic
16
                     relations are closer (centre of vital interests);
17

             (b)     if the State in which the centre of vital interests is situated
18
                     cannot be determined, the individual shall be deemed to be a
19
                     resident only of the State of which that individual is a national;
20

             (c)     if the individual is a national of both States or of neither of
21
                     them, the competent authorities of the Contracting States shall
22
                     endeavour to resolve the question by mutual agreement.
23

24

     4        Where by reason of the provisions of paragraph 1 a person other than an
25
     individual is a resident of both Contracting States, then it shall be deemed to be
26
     a resident only of the State in which its place of effective management is
27
     situated.
28

29

     5         Where under this Convention any income, profits or gains are relieved
30
     from tax in a Contracting State and, under the law in force in the other
31
     Contracting State, an individual in respect of that income or those profits or
32
     gains is exempt from tax by virtue of being a temporary resident of the other
33
     State within the meaning of the applicable tax laws of that other State, then the
34
     relief to be allowed under this Convention in the first-mentioned State shall not
35
     apply to the extent that that income or those profits or gains are exempt from tax
36
     in the other State.
37


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 2

 3

                                       ARTICLE 5
 4

 5

                                  Permanent Establishment
 6
 7

     1        For the purposes of this Convention, the term "permanent
 8
     establishment" means a fixed place of business through which the business of
 9
     the enterprise is wholly or partly carried on.
10

11

     2       The term "permanent establishment" includes especially:
12

             (a)     a place of management;
13

             (b)     a branch;
14

             (c)     an office;
15

             (d)     a factory;
16

             (e)     a workshop;
17

             (f)     a mine, an oil or gas well, a quarry or any other place relating to
18
                     the exploration for or exploitation of natural resources; and
19

             (g)     an agricultural, pastoral or forestry property.
20

21

     3        Notwithstanding the provisions of paragraphs 1 and 2, an enterprise
22
     shall be deemed to have a permanent establishment in a Contracting State and to
23
     carry on business through that permanent establishment if:
24

             (a)     it has a building site or construction or installation project in
25
                     that State, or a supervisory or consultancy activity connected
26
                     therewith, which lasts more than six months; or
27

             (b)     it furnishes services, including consultancy services, for the
28
                     same or a connected project, through its employees or other
29
                     personnel engaged for such purposes, within a Contracting
30
                     State for a period or periods aggregating more than six months
31
                     within any twelve month period; or
32


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 1
                     within that other State (excluding equipment let under a
 2
                     hire-purchase agreement) for more than six months; or
 3

            (d)      a person acting in a Contracting State on behalf of an enterprise
 4
                     of the other Contracting State manufactures or processes in the
 5
                     first-mentioned State for the enterprise goods or merchandise
 6
                     belonging to the enterprise.
 7

 8

     4      (a)      The duration of activities under subparagraph 3(a) will be
 9
                     determined by aggregating the periods during which activities
10
                     are carried on in a Contracting State by associated enterprises
11
                     provided that the activities of the enterprise in that State are
12
                     substantially the same as the activities carried on in that State
13
                     by its associate.
14

            (b)      The period during which two or more associated enterprises are
15
                     carrying on concurrent activities will be counted only once for
16
                     the purpose of determining the duration of activities.
17

            (c)      Under this Article, an enterprise shall be deemed to be
18
                     associated with another enterprise if:
19

                     (i)      one is controlled directly or indirectly by the other; or
20

                     (ii)     both are controlled directly or indirectly by the same
21
                              third person or persons.
22

23


     5      Notwithstanding the preceding provisions of this Article, an enterprise
24

     shall not be deemed to have a permanent establishment merely by reason of:
25


           (a)    the use of facilities solely for the purpose of storage or display of
26

                  goods or merchandise belonging to the enterprise; or
27


           (b)    the maintenance of a stock of goods or merchandise belonging to
28

                  the enterprise solely for the purpose of storage or display; or
29


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 1

                  the enterprise solely for the purpose of processing by another
 2

                  enterprise; or
 3


           (d)    the maintenance of a fixed place of business solely for the purpose
 4

                  of purchasing goods or merchandise, or for collecting information,
 5

                  for the enterprise; or
 6


           (e)    the maintenance of a fixed place of business solely for the purpose
 7

                  of carrying on, for the enterprise, any other activity of a
 8

                  preparatory or auxiliary character.
 9


10

     6        Notwithstanding the provisions of paragraphs 1 and 2, where a
11
     person--other than an agent of an independent status to whom paragraph 7
12
     applies--is acting on behalf of an enterprise and has, and habitually exercises,
13
     in a Contracting State an authority to conclude contracts on behalf of the
14
     enterprise, that enterprise shall be deemed to have a permanent establishment in
15
     that State in respect of any activities which that person undertakes for that
16
     enterprise, unless the activities of such person are limited to those mentioned in
17
     paragraph 5 and are, in relation to the enterprise, of a preparatory or auxiliary
18
     character.
19

20

     7       An enterprise shall not be deemed to have a permanent establishment in
21
     a Contracting State merely because it carries on business in that State through a
22
     person who is a broker, general commission agent or any other agent of an
23
     independent status, provided that such persons are acting in the ordinary course
24
     of the person's business as such a broker or agent.
25

26

     8       The fact that a company which is a resident of a Contracting State
27
     controls or is controlled by a company which is a resident of the other
28
     Contracting State, or which carries on business in that other State (whether
29
     through a permanent establishment or otherwise), shall not of itself make either
30
     company a permanent establishment of the other.
31

32


[Page Break]

 1
     be applied in determining for the purposes of this Convention whether there is a
 2
     permanent establishment in a State other than one of the Contracting States and
 3
     whether an enterprise other than an enterprise of one of the Contracting States
 4
     has a permanent establishment in one of the Contracting States.
 5

 6

                                         ARTICLE 6
 7

 8

                                Income from Real Property
 9
10

     1      Income derived by a resident of a Contracting State from real property
11
     may be taxed in the Contracting State in which the real property is situated.
12

13

     2       The term "real property":
14

             (a)     in the case of Australia, has the meaning which it has under the
15
                     laws of Australia, and shall also include:
16

                     (i)      a lease of land and any other interest in or over land,
17
                              whether improved or not, including a right to explore
18
                              for mineral, oil or gas deposits or other natural
19
                              resources, and a right to mine those deposits or
20
                              resources; and
21

                     (ii)     a right to receive variable or fixed payments either as
22
                              consideration for or in respect of the exploitation of, or
23
                              the right to explore for or exploit, mineral, oil or gas
24
                              deposits, quarries or other places of extraction or
25
                              exploitation of natural resources.
26

             (b)     in the case of Norway, means immovable property according to
27
                     the laws of Norway, and shall also include:
28

                     (i)      property accessory to immovable property;
29

                     (ii)     rights to which the provisions of the general law
30
                              respecting landed property apply;
31

                     (iii)    usufruct of immovable property; and
32

                     (iv)     a right to receive variable or fixed payments as
33
                              consideration for the working of, or the right to work,
34


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 1
                              places of extraction or exploitation of natural resources.
 2

             Ships and aircraft shall not be regarded as real property.
 3

 4

     3        Any interest or right referred to in paragraph 2 shall be regarded as
 5
     situated where the land, mineral, oil or gas deposits, quarries or natural
 6
     resources, as the case may be, are situated or where the exploration may take
 7
     place.
 8

 9

     4        The provisions of paragraph 1 shall apply to income derived from the
10
     direct use, letting, or use in any other form of real property.
11

12

     5       The provisions of paragraphs 1, 3, and 4 shall also apply to income
13
     from real property of an enterprise.
14

15

                                        ARTICLE 7
16

17

                                      Business Profits
18
19

     1        The profits of an enterprise of a Contracting State shall be taxable only
20
     in that State unless the enterprise carries on business in the other Contracting
21
     State through a permanent establishment situated therein. If the enterprise
22
     carries on business as aforesaid, the profits of the enterprise may be taxed in the
23
     other State but only so much of them as is attributable to that permanent
24
     establishment.
25

26

     2        Subject to the provisions of paragraph 3, where an enterprise of a
27
     Contracting State carries on business in the other Contracting State through a
28
     permanent establishment situated therein, there shall in each Contracting State
29
     be attributed to that permanent establishment the profits which it might be
30
     expected to make if it were a distinct and separate enterprise engaged in the
31
     same or similar activities under the same or similar conditions and dealing
32
     wholly independently with the enterprise of which it is a permanent
33
     establishment or with other enterprises with which it deals.
34

35


[Page Break]

 1
     allowed as deductions expenses of the enterprise, being expenses which are
 2
     incurred for the purposes of the permanent establishment (including executive
 3
     and general administrative expenses so incurred) and which would be
 4
     deductible if the permanent establishment were an independent entity which
 5
     paid those expenses, whether incurred in the Contracting State in which the
 6
     permanent establishment is situated or elsewhere.
 7

 8

     4        Nothing in this Article shall affect the application of any law of a
 9
     Contracting State relating to the determination of the tax liability of a person,
10
     including determinations in cases where the information available to the
11
     competent authority of that State is inadequate to determine the profits to be
12
     attributed to a permanent establishment, provided that that law shall be applied,
13
     so far as it is practicable to do so, consistently with the principles of this Article.
14

15

     5       No profits shall be attributed to a permanent establishment by reason of
16
     the mere purchase by that permanent establishment of goods or merchandise for
17
     the enterprise.
18

19

     6        For the purposes of the preceding paragraphs, the profits to be attributed
20
     to the permanent establishment shall be determined by the same method year by
21
     year unless there is good and sufficient reason to the contrary.
22

23

     7       Where profits include items of income or gains which are dealt with
24
     separately in other Articles of this Convention, then the provisions of those
25
     Articles shall not be affected by the provisions of this Article.
26

27

     8        Nothing in this Article shall affect the operation of any law of a
28
     Contracting State relating to tax imposed on profits from insurance with
29
     non-residents provided that if the relevant law in force in either Contracting
30
     State at the date of signature of this Convention is varied (otherwise than in
31
     minor respects so as not to affect its general character) the Contracting States
32
     shall consult with each other with a view to agreeing to any amendment of this
33
     paragraph that may be appropriate.
34

35

     9       Where:
36


[Page Break]

 1
                      whether directly or through one or more interposed trust estates,
 2
                      to a share of the business profits of an enterprise carried on in
 3
                      the other Contracting State by the trustee of a trust estate other
 4
                      than a trust estate which is treated as a company for tax
 5
                      purposes; and
 6

             (b)      in relation to that enterprise, that trustee would, in accordance
 7
                      with the principles of Article 5, have a permanent establishment
 8
                      in that other State,
 9

     the enterprise carried on by the trustee shall be deemed to be a business carried
10
     on in the other State by that resident through a permanent establishment situated
11
     in that other State and that share of business profits shall be attributed to that
12
     permanent establishment.
13

14

                                         ARTICLE 8
15

16

                                 Shipping and Air Transport
17
18

     1       Profits of an enterprise of a Contracting State derived from the
19
     operation of ships or aircraft in international traffic shall be taxable only in that
20
     State.
21

22

     2        Notwithstanding the provisions of paragraph 1, profits of an enterprise
23
     of a Contracting State derived from the operation of ships or aircraft may be
24
     taxed in the other Contracting State to the extent that they are profits derived
25
     directly or indirectly from ship or aircraft operations confined solely to places in
26
     that other State.
27

28

     3       The provisions of paragraphs 1 and 2 shall also apply to profits derived
29
     from the participation in a pool, a joint business or in an international operating
30
     agency.
31

32

     4        For the purposes of this Article, profits derived from the carriage by
33
     ships or aircraft of passengers, livestock, mail, goods or merchandise which are
34
     shipped in a Contracting State and are discharged at a place in that State shall be
35


[Page Break]

 1
     that State.
 2

 3

     5        The provisions of paragraphs 1, 2 and 3 shall apply to profits derived by
 4
     the joint Norwegian, Danish and Swedish air transport consortium Scandinavian
 5
     Airlines System (SAS), but only insofar as profits derived by SAS Norge AS,
 6
     the Norwegian partner of the Scandinavian Airlines System (SAS), are in
 7
     proportion to its share in that organisation.
 8

 9

                                         ARTICLE 9
10

11

                                   Associated Enterprises
12
13

     1       Where:
14

             (a)      an enterprise of a Contracting State participates directly or
15
                      indirectly in the management, control or capital of an enterprise
16
                      of the other Contracting State; or
17

             (b)      the same persons participate directly or indirectly in the
18
                      management, control or capital of an enterprise of a Contracting
19
                      State and an enterprise of the other Contracting State,
20

     and in either case conditions operate between the two enterprises in their
21
     commercial or financial relations which differ from those which might be
22
     expected to operate between independent enterprises dealing wholly
23
     independently with one another, then any profits which, but for those
24
     conditions, might have been expected to accrue to one of the enterprises, but, by
25
     reason of those conditions, have not so accrued, may be included in the profits
26
     of that enterprise and taxed accordingly.
27

28

     2       Nothing in this Article shall affect the application of any law of a
29
     Contracting State relating to the determination of the tax liability of a person,
30
     including determinations in cases where the information available to the
31
     competent authority of that State is inadequate to determine the profits accruing
32
     to an enterprise, provided that that law shall be applied, so far as it is practicable
33
     to do so, consistently with the principles of this Article.
34

35


[Page Break]

 1
     charged to tax in that State are also included, by virtue of the provisions of
 2
     paragraph 1 or 2, in the profits of an enterprise of the other Contracting State
 3
     and charged to tax in that other State, and the profits so included are profits
 4
     which might have been expected to have accrued to that enterprise of the other
 5
     State if the conditions operative between the enterprises had been those which
 6
     might have been expected to have operated between independent enterprises
 7
     dealing wholly independently with one another, then the first-mentioned State
 8
     shall make an appropriate adjustment to the amount of tax charged on those
 9
     profits in the first-mentioned State, if that State considers the adjustment
10
     justified. In determining such an adjustment, due regard shall be had to the
11
     other provisions of this Convention and for this purpose the competent
12
     authorities of the Contracting States shall if necessary consult each other.
13

14

                                       ARTICLE 10
15

16

                                        Dividends
17
18

     1        Dividends paid by a company which is a resident of a Contracting State
19
     for the purposes of its tax, being dividends beneficially owned by a resident of
20
     the other Contracting State, may be taxed in that other State.
21

22

     2       However, those dividends may also be taxed in the Contracting State of
23
     which the company paying the dividends is a resident for the purposes of its tax,
24
     and according to the law of that State, but the tax so charged shall not exceed:
25

             (a)     5 per cent of the gross amount of the dividends, if the beneficial
26
                     owner of those dividends is a company (other than a
27
                     partnership) which holds directly at least 10 per cent of the
28
                     voting power in the company paying the dividends; and
29

             (b)     15 per cent of the gross amount of the dividends in all other
30
                     cases,
31

     provided that if the relevant law in either Contracting State at the date of
32
     signature of this Convention is varied otherwise than in minor respects so as not
33
     to affect its general character, the Contracting States shall consult each other
34
     with a view to agreeing to any amendment of this paragraph that may be
35
     appropriate.
36

37


[Page Break]

 1
     shall not be taxed in the Contracting State of which the company paying the
 2
     dividends is a resident if the beneficial owner of the dividends is a company that
 3
     is a resident of the other Contracting State that has owned shares representing
 4
     80 per cent or more of the voting power of the company paying the dividends
 5
     for a twelve month period ending on the date the dividend is declared and the
 6
     company that is the beneficial owner of the dividends:
 7

             (a)     has its principal class of shares listed on a recognised stock
 8
                     exchange specified in subparagraph (i) or (ii) of
 9
                     subparagraph (o) of paragraph 1 of Article 3 and is regularly
10
                     traded on one or more recognised stock exchanges;
11

             (b)     is owned directly or indirectly by one or more companies
12
                     whose principal class of shares is listed on a recognised stock
13
                     exchange specified in subparagraph (i) or (ii) of
14
                     subparagraph (o) of paragraph 1 of Article 3 and is regularly
15
                     traded on one or more recognised stock exchanges; or
16

             (c)     does not meet the requirements of subparagraphs (a) or (b) of
17
                     this paragraph but the competent authority of the
18
                     first-mentioned Contracting State determines, in accordance
19
                     with the law of that State, that the establishment, acquisition or
20
                     maintenance of the company that is the beneficial owner of the
21
                     dividends and the conduct of its operations did not have as one
22
                     of its principal purposes the obtaining of benefits under this
23
                     Convention. The competent authority of the first-mentioned
24
                     Contracting State shall consult the competent authority of the
25
                     other Contracting State before refusing to grant benefits of this
26
                     Convention under this subparagraph.
27

28

     4        The term "dividends" as used in this Article means income from shares
29
     or other rights, not being debt-claims, participating in profits, as well as other
30
     amounts which are subjected to the same taxation treatment as income from
31
     shares by the law of the State of which the company making the distribution is a
32
     resident for the purposes of its tax.
33

34

     5       The provisions of paragraphs 1, 2 and 3 shall not apply if the beneficial
35
     owner of the dividends, being a resident of a Contracting State, carries on
36
     business in the other Contracting State of which the company paying the
37
     dividends is a resident, through a permanent establishment situated therein, and
38
     the holding in respect of which the dividends are paid is effectively connected
39


[Page Break]

 1
     shall apply.
 2

 3

     6        Where a company which is a resident of a Contracting State derives
 4
     profits or income from the other Contracting State, that other State may not
 5
     impose any tax on the dividends paid by the company--being dividends
 6
     beneficially owned by a person who is not a resident of the other Contracting
 7
     State--except insofar as the holding in respect of which such dividends are paid
 8
     is effectively connected with a permanent establishment situated in that other
 9
     State, even if the dividends paid consist wholly or partly of profits or income
10
     arising in such other State. This paragraph shall not apply in relation to
11
     dividends paid by any company which is a resident of Australia for the purposes
12
     of Australian tax and which is also a resident of Norway for the purposes of
13
     Norwegian tax.
14

     7       No relief shall be available under this Article if it was the main purpose
15
     or one of the main purposes of any person concerned with the creation or
16
     assignment of shares or other rights in respect of which the dividend is paid to
17
     take advantage of this Article by means of that creation or assignment.
18

19

                                       ARTICLE 11
20

21

                                          Interest
22
23

     1       Interest arising in a Contracting State and beneficially owned by a
24
     resident of the other Contracting State may be taxed in that other State.
25

26

     2       However, that interest may also be taxed in the Contracting State in
27
     which it arises, and according to the law of that State, but the tax so charged
28
     shall not exceed 10 per cent of the gross amount of the interest.
29

30

     3        Notwithstanding paragraph 2, interest arising in a Contracting State and
31
     beneficially owned by a resident of the other Contracting State may not be taxed
32
     in the first-mentioned State if:
33

             (a)     the interest is derived from the investment of official reserve
34
                     assets by the government of a Contracting State, its monetary
35


[Page Break]

 1
                      that State; or
 2

             (b)      the interest is derived by a financial institution which is
 3
                      unrelated to and dealing wholly independently with the payer.
 4
                      For the purposes of this Article, the term "financial institution"
 5
                      means a bank or other enterprise substantially deriving its
 6
                      profits by raising debt finance in the financial markets or by
 7
                      taking deposits at interest and using those funds in carrying on
 8
                      a business of providing finance.
 9

10

     4        Notwithstanding paragraph 3, interest referred to in subparagraph (b) of
11
     that paragraph may be taxed in the State in which it arises at a rate not
12
     exceeding 10 per cent of the gross amount of the interest if the interest is paid as
13
     part of an arrangement involving back-to-back loans or other arrangement that
14
     is economically equivalent and intended to have a similar effect to back-to-back
15
     loans.
16

17

     5        The term "interest" in this Article includes interest from government
18
     securities or from bonds or debentures, whether or not secured by mortgage,
19
     interest from any other form of indebtedness, as well as income which is
20
     subjected to the same taxation treatment as income from money lent by the law
21
     of the Contracting State in which the income arises.
22

23

     6        The provisions of paragraphs 1 and 2, subparagraph (b) of paragraph 3
24
     and paragraph 4 of this Article shall not apply if the beneficial owner of the
25
     interest, being a resident of a Contracting State, carries on business in the other
26
     Contracting State in which the interest arises, through a permanent
27
     establishment situated therein, and the indebtedness in respect of which the
28
     interest is paid is effectively connected with such permanent establishment. In
29
     such case the provisions of Article 7 shall apply.
30

     7        Interest shall be deemed to arise in a Contracting State when the payer
31
     is a resident of that State for the purposes of its tax. Where, however, the
32
     person paying the interest, whether the person is a resident of a Contracting
33
     State or not, has in a Contracting State or outside both Contracting States a
34
     permanent establishment in connection with which the indebtedness on which
35
     the interest is paid was incurred, and such interest is borne by such permanent
36
     establishment, then such interest shall be deemed to arise in the State in which
37
     the permanent establishment is situated.
38


[Page Break]


     8        Where, by reason of a special relationship between the payer and the
 2
     beneficial owner of the interest, or between both of them and some other
 3
     person, the amount of the interest paid, having regard to the indebtedness for
 4
     which it is paid, exceeds the amount which might have been expected to have
 5
     been agreed upon by the payer and the beneficial owner in the absence of that
 6
     relationship, the provisions of this Article shall apply only to the last-mentioned
 7
     amount. In such case, the excess part of the payments shall remain taxable
 8
     according to the law of each Contracting State, due regard being had to the
 9
     other provisions of this Convention.
10

11

     9       No relief shall be available under this Article if it was the main purpose
12
     or one of the main purposes of any person concerned with the creation or
13
     assignment of the indebtedness in respect of which the interest is paid to take
14
     advantage of this Article by means of that creation or assignment.
15

16

17

                                       ARTICLE 12
18

19

                                         Royalties
20
21

     1       Royalties arising in a Contracting State and beneficially owned by a
22
     resident of the other Contracting State may be taxed in that other State.
23

24

     2       However, those royalties may also be taxed in the Contracting State in
25
     which they arise, and according to the law of that State, but the tax so charged
26
     shall not exceed 5 per cent of the gross amount of the royalties.
27

28

     3       The term "royalties" in this Article means payments or credits, whether
29
     periodical or not, and however described or computed, to the extent to which
30
     they are made as consideration for:
31

             (a)     the use of, or the right to use, any copyright, patent, design or
32
                     model, plan, secret formula or process, trademark or other like
33
                     property or right; or
34


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 1
                     knowledge or information; or
 2

             (c)     the supply of any assistance that is ancillary and subsidiary to,
 3
                     and is furnished as a means of enabling the application or
 4
                     enjoyment of, any such property or right as is mentioned in
 5
                     subparagraph (a) or any such knowledge or information as is
 6
                     mentioned in subparagraph (b); or
 7

             (d)     the use of, or the right to use:
 8

                     (i)      motion picture films; or
 9

                     (ii)     films or audio or video tapes or disks, or any other
10
                              means of image or sound reproduction or transmission
11
                              for use in connection with television, radio or other
12
                              broadcasting; or
13

             (e)     the use of, or the right to use, some or all of the part of the
14
                     radiofrequency spectrum specified in a spectrum licence; or
15

             (f)     total or partial forbearance in respect of the use or supply of any
16
                     property or right referred to in this paragraph.
17

18

     4       The provisions of paragraphs 1 and 2 shall not apply if the beneficial
19
     owner of the royalties, being a resident of a Contracting State, carries on
20
     business in the other Contracting State, in which the royalties arise, through a
21
     permanent establishment situated therein, and the right or property in respect of
22
     which the royalties are paid or credited is effectively connected with such
23
     permanent establishment. In such case the provisions of Article 7 shall apply.
24

25

     5        Royalties shall be deemed to arise in a Contracting State when the payer
26
     is a resident of that State for the purposes of its tax. Where, however, the person
27
     paying the royalties, whether the person is a resident of a Contracting State or
28
     not, has in a Contracting State or outside both Contracting States a permanent
29
     establishment in connection with which the liability to pay the royalties was
30
     incurred, and the royalties are borne by the permanent establishment, then such
31
     royalties shall be deemed to arise in the State in which the permanent
32
     establishment is situated.
33

34

     6       Where, by reason of a special relationship between the payer and the
35
     beneficial owner of the royalties, or between both of them and some other
36


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 1
     are paid or credited for, exceeds the amount which might have been expected to
 2
     have been agreed upon by the payer and the beneficial owner in the absence of
 3
     such relationship, the provisions of this Article shall apply only to the
 4
     last-mentioned amount. In such case, the excess part of the amount of the
 5
     payments or credits shall remain taxable according to the law of each
 6
     Contracting State, due regard being had to the other provisions of this
 7
     Convention.
 8

 9

     7       No relief shall be available under this Article if it was the main purpose
10
     or one of the main purposes of any person concerned with the creation or
11
     assignment of rights in respect of which the royalties are paid or credited to take
12
     advantage of this Article by means of that creation or assignment.
13

14

                                        ARTICLE 13
15

16

                                   Alienation of Property
17
18

     1       Income, profits or gains derived by a resident of a Contracting State
19
     from the alienation of real property referred to in Article 6 and situated in the
20
     other Contracting State may be taxed in that other State.
21

22

     2        Income, profits or gains from the alienation of property, other than real
23
     property, that forms part of the business property of a permanent establishment
24
     which an enterprise of a Contracting State has in the other Contracting State,
25
     including income, profits or gains from the alienation of that permanent
26
     establishment (alone or with the whole enterprise), may be taxed in that other
27
     State.
28

29

     3        Income, profits or gains of an enterprise of a Contracting State from the
30
     alienation of ships or aircraft operated by that enterprise in international traffic,
31
     or of property (other than real property) pertaining to the operation of those
32
     ships or aircraft, shall be taxable only in that State.
33

34

     4       Income, profits or gains derived by a resident of a Contracting State
35
     from the alienation of any shares or comparable interests deriving more than 50
36


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 1
     other Contracting State, may be taxed in that other State.
 2

 3

     5        Gains of a capital nature from the alienation of any property, other than
 4
     that referred to in the preceding paragraphs shall be taxable only in the
 5
     Contracting State of which the alienator is a resident.
 6

 7

                                        ARTICLE 14
 8

 9

                                 Income from Employment
10
11

     1       Subject to the provisions of Articles 15, 17 and 18, salaries, wages and
12
     other similar remuneration derived by an individual who is a resident of a
13
     Contracting State in respect of an employment shall be taxable only in that State
14
     unless the employment is exercised in the other Contracting State. If the
15
     employment is so exercised, such remuneration as is derived therefrom may be
16
     taxed in that other State.
17

18

     2       Notwithstanding the provisions of paragraph 1, remuneration derived
19
     by an individual who is a resident of a Contracting State in respect of an
20
     employment exercised in the other Contracting State shall be taxable only in the
21
     first-mentioned State if:
22

             (a)      the recipient is present in the other State for a period or periods
23
                      not exceeding in the aggregate 183 days in any twelve month
24
                      period commencing or ending in the year of income of that
25
                      other State; and
26

             (b)      the remuneration is paid by, or on behalf of, an employer who
27
                      is a resident of the first-mentioned State; and
28

             (c)      the remuneration is not borne by a permanent establishment
29
                      which the employer has in that other State.
30

31

     3        Notwithstanding the preceding provisions of this Article, remuneration
32
     derived in respect of an employment exercised aboard a ship or aircraft operated
33
     in international traffic may be taxed in the Contracting State of which the
34
     enterprise operating the ship or aircraft is a resident. However, where such
35


[Page Break]

 1
     registered in the Norwegian International Ships' register (NIS), the remuneration
 2
     shall be taxable only in the Contracting State where the recipient is a resident.
 3

 4

     4        Where a resident of a Contracting State derives remuneration in respect
 5
     of an employment exercised aboard an aircraft operated in international traffic
 6
     by the Scandinavian Airlines System (SAS) consortium, such remuneration
 7
     shall be taxable only in that State.
 8

 9

                                       ARTICLE 15
10

11

                                       Directors' Fees
12
13

             Directors' fees and other similar payments derived by a resident of a
14
     Contracting State in that person's capacity as a member of the board of
15
     directors, or similar body, of a company which is a resident of the other
16
     Contracting State may be taxed in that other State.
17

18

                                       ARTICLE 16
19

20

                              Entertainers and Sportspersons
21
22

     1        Notwithstanding the provisions of Articles 7 and 14, income derived by
23
     a resident of a Contracting State as an entertainer, such as a theatre, motion
24
     picture, radio or television artiste, or a musician, or as a sportsperson, from that
25
     person's personal activities as such exercised in the other Contracting State, may
26
     be taxed in that other State.
27

28

     2        Where income in respect of personal activities exercised by an
29
     entertainer or a sportsperson in that person's capacity as such accrues not to that
30
     person but to another person, that income may, notwithstanding the provisions
31
     of Articles 7 and 14, be taxed in the Contracting State in which the activities of
32
     the entertainer or sportsperson are exercised.
33

34


[Page Break]

 1
     from activities performed in a Contracting State by entertainers or sportspersons
 2
     if the visit to that State is wholly or mainly supported by public funds of the
 3
     other Contracting State or a political subdivision or local authority of that State.
 4
     In such a case, the income is taxable only in the Contracting State of which the
 5
     entertainer or sportsperson is a resident.
 6

 7

                                        ARTICLE 17
 8

 9

                                  Pensions and Annuities
10
11

     1       Subject to the provisions of paragraph 2 of Article 18, pensions and
12
     annuities paid to a resident of a Contracting State shall be taxable only in that
13
     State.
14

15

     2       The term "annuity" means a stated sum payable periodically at stated
16
     times during life or during a specified or ascertainable period of time under an
17
     obligation to make the payments in return for adequate and full consideration in
18
     money or money's worth.
19

20

     3        Any alimony or other maintenance payment arising in a Contracting
21
     State and paid to a resident of the other Contracting State shall be taxable only
22
     in the first-mentioned State.
23

24

                                        ARTICLE 18
25

26

                                    Government Service
27
28

     1        Salaries, wages and other similar remuneration, other than a pension or
29
     annuity, paid by a Contracting State or a political subdivision or local authority
30
     of that State to an individual in respect of services rendered to that State or
31
     subdivision or authority shall be taxable only in that State. However, such
32
     salaries, wages and other similar remuneration shall be taxable only in the other
33
     Contracting State if the services are rendered in that other State and the
34
     individual is a resident of that other State who:
35


[Page Break]

 1

      (b)    did not become a resident of that State solely for the purpose of
 2
             rendering the services.
 3

 4

     2        Any pension paid by, or out of funds created by, a Contracting State or
 5
     a political subdivision or local authority of that State to an individual in the
 6
     respect of services rendered to that State or subdivision or authority (including,
 7
     in the case of Norway, any national insurance element of such pension) shall be
 8
     taxable only in that State. However, such pensions shall be taxable only in the
 9
     other Contracting State if the individual is a resident of, and a national of, that
10
     State.
11

12

     3        The provisions of Articles 14, 15, 16 and 17 shall apply to salaries,
13
     wages and other similar remuneration and to pensions in respect of services
14
     rendered in connection with a business carried on by a Contracting State or a
15
     political subdivision or local authority of that State.
16

17

                                        ARTICLE 19
18

19

                                           Students
20
21

              Payments which a student who is or was immediately before visiting a
22
     Contracting State a resident of the other Contracting State and who is
23
     temporarily present in the first-mentioned State solely for the purpose of the
24
     student's education receives for the purpose of the student's maintenance or
25
     education shall not be taxed in that State, provided that such payments arise
26
     from sources outside that State.
27

28

                                        ARTICLE 20
29

30

                                     Offshore Activities
31
32

     1       The provisions of this Article shall apply notwithstanding any other
33
     provision of this Convention.
34


[Page Break]


     2        A person who is a resident of a Contracting State and carries on
 2
     activities offshore in the other Contracting State in connection with the
 3
     exploration or exploitation of the seabed or subsoil or their natural resources
 4
     situated in that other State shall, subject to paragraph 3 of this Article, be
 5
     deemed in relation to those activities to be carrying on business in that other
 6
     State through a permanent establishment situated therein.
 7

 8

     3        The provisions of paragraph 2 shall not apply where the activities are
 9
     carried on in a Contracting State for a period or periods not exceeding 30 days
10
     in the aggregate in any twelve month period commencing or ending in the year
11
     of income of that State. However, for the purposes of this paragraph:
12

      (a)    activities carried on by an enterprise associated with another enterprise
13
             shall be regarded as carried on by the enterprise with which it is
14
             associated if the activities in question are substantially the same as
15
             those carried on by the last-mentioned enterprise;
16

      (b)    the period during which two or more associated enterprises are carrying
17
             on concurrent activities will be counted only once for the purpose of
18
             determining the duration of activities; and
19

      (c)    an enterprise shall be deemed to be associated with another enterprise
20
             if:
21

      (i)    one is controlled directly or indirectly by the other; or
22

      (ii)   both are controlled directly or indirectly by the same third person or
23
             persons.
24

25

     4       Salaries, wages and other similar remuneration derived by a resident of
26
     a Contracting State in respect of an employment connected with the exploration
27
     or exploitation of the seabed or subsoil or their natural resources situated in the
28
     other Contracting State may, to the extent that the employment is exercised
29
     offshore in that other State, be taxed in that other State. However, such
30
     remuneration shall be taxable only in the first-mentioned State if the
31
     employment is exercised offshore for an employer who is not a resident of the
32
     other State and provided that the employment is carried on for a period or
33
     periods not exceeding in the aggregate 30 days in any twelve month period
34
     commencing or ending in the year of income of that other State.
35

36


[Page Break]

 1

 2

                                       Other Income
 3
 4

     1        Items of income of a resident of a Contracting State, wherever arising,
 5
     not dealt with in the foregoing Articles of this Convention shall be taxable only
 6
     in that State.
 7

 8

     2        The provisions of paragraph 1 shall not apply to income, other than
 9
     income from real property as defined in paragraph 2 of Article 6, derived by a
10
     resident of a Contracting State who carries on business in the other Contracting
11
     State through a permanent establishment situated therein and the right or
12
     property in respect of which the income is paid is effectively connected with
13
     such permanent establishment. In such case the provisions of Article 7 shall
14
     apply.
15

16

     3        Notwithstanding the provisions of paragraphs 1 and 2, items of income
17
     of a resident of a Contracting State not dealt with in the foregoing Articles of
18
     this Convention from sources in the other Contracting State may also be taxed
19
     in that other State.
20

21

                                        ARTICLE 22
22

23

                                     Source of Income
24
25

     1       Income, profits or gains derived by a resident of a Contracting State
26
     which, under any one or more of Articles 6 to 8, 10 to 16, 18 and 20, may be
27
     taxed in the other Contracting State shall for the purposes of the law of that
28
     other State relating to its tax be deemed to arise from sources in that other State.
29

30

     2       Income, profits or gains derived by a resident of a Contracting State
31
     which, under any one or more of Articles 6 to 8, 10 to 16, 18 and 20, may be
32
     taxed in the other Contracting State shall for the purposes of Article 23 and of
33
     the law of the first-mentioned State relating to its tax be deemed to arise from
34
     sources in the other State.
35


[Page Break]


                                       ARTICLE 23
 2

 3

                       Methods of Elimination of Double Taxation
 4
 5

     1        Subject to the provisions of the law of Australia from time to time in
 6
     force which relate to the allowance of a credit against Australian tax of tax paid
 7
     in a country outside Australia (which shall not affect the general principle of
 8
     this Article), Norwegian tax paid under the law of Norway and in accordance
 9
     with this Convention, whether directly or by deduction, in respect of income
10
     derived by a person who is a resident of Australia from sources in Norway shall
11
     be allowed as a credit against Australian tax payable in respect of that income.
12

13

     2      Subject to the provisions of the laws of Norway regarding the
14
     allowance as a credit against Norwegian tax of tax payable in a territory outside
15
     Norway (which shall not affect the general principle hereof):
16

             (a)     where a resident of Norway derives income which, in
17
                     accordance with the provisions of this Convention, may be
18
                     taxed in Australia, Norway shall allow as a deduction from the
19
                     tax on the income of that resident, an amount equal to the
20
                     income tax paid in Australia on that income. Such deduction
21
                     shall not, however, exceed that part of the income tax, as
22
                     computed before the deduction is given, which is attributable to
23
                     the income which may be taxed in Australia.
24

             (b)     where in accordance with any provision of the Convention
25
                     income derived by a resident of Norway is exempt from tax in
26
                     Norway, Norway may nevertheless include such income in the
27
                     tax base, but shall allow as a deduction from the Norwegian tax
28
                     on income that part of the Norwegian income tax which is
29
                     attributable to the income derived from Australia.
30

31

                                       ARTICLE 24
32

33

                                    Non-discrimination
34
35


[Page Break]

 1
     Contracting State to any taxation or any requirement connected therewith,
 2
     which is other or more burdensome than the taxation and connected
 3
     requirements to which nationals of that other State in the same circumstances, in
 4
     particular with respect to residence, are or may be subjected.
 5

 6

     2        The taxation on a permanent establishment which an enterprise of a
 7
     Contracting State has in the other Contracting State shall not be less favourably
 8
     levied in that other State than the taxation levied on enterprises of that other
 9
     State carrying on the same activities in similar circumstances.
10

11

     3        Except where the provisions of paragraph 1 of Article 9, paragraph 8 of
12
     Article 11, or paragraph 6 of Article 12, apply, interest, royalties and other
13
     disbursements paid by an enterprise of a Contracting State to a resident of the
14
     other Contracting State shall for the purpose of determining the taxable profits
15
     of such enterprise, be deductible under the same conditions as if they had been
16
     paid to a resident of the first-mentioned State.
17

18

     4        Enterprises of a Contracting State, the capital of which is wholly or
19
     partly owned or controlled, directly or indirectly, by one or more residents of
20
     the other Contracting State, shall not be subjected in the first-mentioned State to
21
     any taxation or any requirement connected therewith which is other or more
22
     burdensome than the taxation and connected requirements to which other
23
     similar enterprises of the first-mentioned State in similar circumstances are or
24
     may be subjected.
25

26

     5      Nothing contained in this Article shall be construed as obliging a
27
     Contracting State to grant to individuals who are residents of the other
28
     Contracting State any of the personal allowances, reliefs and reductions for tax
29
     purposes which are granted to its own resident individuals.
30

31

     6       This Article shall not apply to any provision of the law of a Contracting
32
     State which:
33

             (a)     is designed to prevent the avoidance or evasion of taxes; or
34

             (b)     does not permit the deferral of tax arising on the transfer of an
35
                     asset where the subsequent transfer of the asset by the
36


[Page Break]

 1
                     Contracting State under its laws; or
 2

             (c)     provides for consolidation of group entities for treatment as a
 3
                     single entity for tax purposes provided that a company, being a
 4
                     resident of that State, the capital of which is wholly or partly
 5
                     owned or controlled, directly or indirectly, by one or more
 6
                     residents of the other Contracting State, may access such
 7
                     consolidation treatment on the same terms and conditions as
 8
                     other companies that are residents of the first-mentioned State;
 9
                     or
10

             (d)     does not allow tax rebates or credits in relation to dividends
11
                     paid by a company that is a resident of that State for purposes
12
                     of its tax; or
13

             (e)     provides deductions to eligible taxpayers for expenditure on
14
                     research and development; or
15

             (f)     is otherwise agreed to be unaffected by this Article in an
16
                     Exchange of Notes between the Contracting States.
17

18

     7      In this Article, provisions of the law of a Contracting State which are
19
     designed to prevent avoidance or evasion of taxes include:
20

             (a)     measures designed to address thin capitalisation, dividend
21
                     stripping and transfer pricing;
22

             (b)     controlled foreign company, transferor trusts and foreign
23
                     investment fund rules; and
24

             (c)     measures designed to ensure that taxes can be effectively
25
                     collected and recovered, including conservancy measures.
26

27

                                      ARTICLE 25
28

29

                              Mutual Agreement Procedure
30
31

     1      Where a person considers that the actions of one or both of the
32
     Contracting States result or will result for the person in taxation not in
33
     accordance with this Convention, the person may, irrespective of the remedies
34
     provided by the domestic law of those States concerning taxes to which this
35


[Page Break]

 1
     State of which the person is a resident or, if the case comes under paragraph 1
 2
     of Article 24, to that of the Contracting State of which the person is a national.
 3
     The case must be presented within 3 years from the first notification of the
 4
     action resulting in taxation not in accordance with this Convention.
 5

 6

     2        The competent authority shall endeavour, if the claim appears to it to be
 7
     justified and if it is not itself able to arrive at a satisfactory solution, to resolve
 8
     the case by mutual agreement with the competent authority of the other
 9
     Contracting State, with a view to the avoidance of taxation which is not in
10
     accordance with this Convention. The solution so reached shall be implemented
11
     notwithstanding any time limits in the domestic law of the Contracting States.
12

13

     3        The competent authorities of the Contracting States shall endeavour to
14
     resolve by mutual agreement any difficulties or doubts arising as to the
15
     interpretation or application of this Convention. They may also consult together
16
     for the elimination of double taxation in cases not provided for in this
17
     Convention.
18

19

     4       The competent authorities of the Contracting States may communicate
20
     with each other directly for the purpose of reaching an agreement in the sense of
21
     the preceding paragraphs.
22

23

     5       For the purposes of paragraph 3 of Article XXII (Consultation) of the
24
     General Agreement on Trade in Services, the Contracting States agree that,
25
     notwithstanding that paragraph, any dispute between them as to whether a
26
     measure falls within the scope of this Convention may be brought before the
27
     Council for Trade in Services, as provided by that paragraph, only with the
28
     consent of both Contracting States. Any doubt as to the interpretation of this
29
     paragraph shall be resolved under paragraph 3 of this Article or, failing
30
     agreement under that procedure, pursuant to any other procedure agreed to by
31
     both Contracting States.
32

33

                                         ARTICLE 26
34

35

                                  Exchange of Information
36


[Page Break]


     1       The competent authorities of the Contracting States shall exchange such
 2
     information as is forseeably relevant for carrying out the provisions of this
 3
     Convention or to the administration or enforcement of the domestic laws
 4
     concerning taxes referred to in Article 2, insofar as the taxation thereunder is
 5
     not contrary to the Convention. The exchange of information is not restricted by
 6
     Article 1.
 7

 8

     2        Any information received under paragraph 1 by a Contracting State
 9
     shall be treated as secret in the same manner as information obtained under the
10
     domestic laws of that State and shall be disclosed only to persons or authorities
11
     (including courts and administrative bodies) concerned with the assessment or
12
     collection of, the enforcement or prosecution in respect of, the determination of
13
     appeals in relation to the taxes referred to in paragraph 1, or the oversight of the
14
     above. Such persons or authorities shall use the information only for such
15
     purposes. They may disclose the information in public court proceedings or in
16
     judicial decisions.
17

18

     3      In no case shall the provisions of paragraphs 1 and 2 be construed so as
19
     to impose on a Contracting State the obligation:
20

             (a)      to carry out administrative measures at variance with the laws
21
                      and administrative practice of that or of the other Contracting
22
                      State; or
23

             (b)      to supply information which is not obtainable by the competent
24
                      authority under the laws or in the normal course of the
25
                      administration of that or of the other Contracting State; or
26

             (c)      to supply information which would disclose any trade, business,
27
                      industrial, commercial or professional secret or trade process,
28
                      or information, the disclosure of which would be contrary to
29
                      public policy (ordre public).
30

31

     4        If information is requested by a Contracting State in accordance with
32
     this Article, the other Contracting State shall use its information gathering
33
     measures to obtain the requested information, even though that other State may
34
     not need such information for its own tax purposes. The obligation contained in
35
     the preceding sentence is subject to the limitations of paragraph 3 but in no case
36
     shall such limitations be construed to permit a Contracting State to decline to
37


[Page Break]

 1
     information.
 2

 3

     5        In no case shall the provisions of paragraph 3 be construed to permit a
 4
     Contracting State to decline to supply information solely because the
 5
     information is held by a bank, other financial institution, nominee or person
 6
     acting in an agency or a fiduciary capacity or because it relates to ownership
 7
     interests in a person.
 8

 9

10

                                        ARTICLE 27
11

12

                           Assistance in the Collection of Taxes
13
14

     1        The Contracting States shall lend assistance to each other in the
15
     collection of revenue claims. This assistance is not restricted by Article 1. The
16
     competent authorities of the Contracting States may by mutual agreement settle
17
     the mode of application of this Article.
18

19

     2        The term "revenue claim" as used in this Article means an amount owed
20
     in respect of taxes referred to in Article 2, insofar as the taxation thereunder is
21
     not contrary to this Convention or any other instrument to which the
22
     Contracting States are parties, as well as interest, administrative penalties and
23
     costs of collection or conservancy related to such amount.
24

25

     3        When a revenue claim of a Contracting State is enforceable under the
26
     laws of that State and is owed by a person who, at that time, cannot, under the
27
     laws of that State, prevent its collection, that revenue claim shall, at the request
28
     of the competent authority of that State, be accepted for purposes of collection
29
     by the competent authority of the other Contracting State. That revenue claim
30
     shall be collected by that other State in accordance with the provisions of its
31
     laws applicable to the enforcement and collection of its own taxes as if the
32
     revenue claim were a revenue claim of that other State.
33

34


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 1
     which that State may, under its law, take measures of conservancy with a view
 2
     to ensure its collection, that revenue claim shall, at the request of the competent
 3
     authority of that State, be accepted for purposes of taking measures of
 4
     conservancy by the competent authority of the other Contracting State. That
 5
     other State shall take measures of conservancy in respect of that revenue claim
 6
     in accordance with the provisions of its laws as if the revenue claim were a
 7
     revenue claim of that other State even if, at the time when such measures are
 8
     applied, the revenue claim is not enforceable in the first-mentioned State or is
 9
     owed by a person who has a right to prevent its collection.
10

11

     5        Notwithstanding the provisions of paragraphs 3 and 4, a revenue claim
12
     accepted by a Contracting State for purposes of paragraph 3 or 4 shall not, in
13
     that State, be subject to the time limits or accorded any priority applicable to a
14
     revenue claim under the laws of that State by reason of its nature as such. In
15
     addition, a revenue claim accepted by a Contracting State for the purposes of
16
     paragraph 3 or 4 shall not, in that State, have any priority applicable to that
17
     revenue claim under the laws of the other Contracting State.
18

19

     6      Proceedings with respect to the existence, validity or the amount of a
20
     revenue claim of a Contracting State shall not be brought before the courts or
21
     administrative bodies of the other Contracting State.
22

23

     7       Where, at any time after a request has been made by a Contracting State
24
     under paragraph 3 or 4 and before the other Contracting State has collected and
25
     remitted the relevant revenue claim to the first-mentioned State, the relevant
26
     revenue claim ceases to be:
27

             (a)      in the case of a request under paragraph 3, a revenue claim of
28
                      the first-mentioned State that is enforceable under the laws of
29
                      that State and is owed by a person who, at that time, cannot,
30
                      under the laws of that State, prevent its collection; or
31

             (b)      in the case of a request under paragraph 4, a revenue claim of
32
                      the first-mentioned State in respect of which that State may,
33
                      under its laws, take measures of conservancy with a view to
34
                      ensure its collection,
35

     the competent authority of the first-mentioned State shall promptly notify the
36
     competent authority of the other State of that fact and, at the option of the other
37
     State, the first-mentioned State shall either suspend or withdraw its request.
38


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     8      In no case shall the provisions of this Article be construed so as to
 2
     impose on a Contracting State the obligation:
 3

             (a)     to carry out administrative measures at variance with the laws
 4
                     and administrative practice of that or of the other Contracting
 5
                     State; or
 6

             (b)     to carry out measures which would be contrary to public policy
 7
                     (ordre public); or
 8

             (c)     to provide assistance if the other Contracting State has not
 9
                     pursued all reasonable measures of collection or conservancy,
10
                     as the case may be, available under its laws or administrative
11
                     practice; or
12

             (d)     to provide assistance in those cases where the administrative
13
                     burden for that State is clearly disproportionate to the benefit to
14
                     be derived by the other Contracting State; or
15

             (e)     to provide assistance if that State considers that the taxes with
16
                     respect to which assistance is requested are imposed contrary to
17
                     generally accepted taxation principles.
18

19

                                       ARTICLE 28
20

21

                   Members of Diplomatic Missions and Consular Posts
22
23

     1       Nothing in this Convention shall affect the fiscal privileges of members
24
     of diplomatic missions or consular posts under the general rules of international
25
     law or under the provisions of special international agreements.
26

27

     2        Insofar as, due to fiscal privileges granted to members of diplomatic
28
     missions and consular posts under the general rules of international law or under
29
     the provisions of special international agreements, income is not subject to tax
30
     in the receiving State, the right to tax shall be reserved to the sending State.
31

32

                                       ARTICLE 29
33

34


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 1
 2

     1        The Contracting States shall notify each other in writing through the
 3
     diplomatic channel of the completion of their domestic requirements for the
 4
     entry into force of this Convention.
 5

 6

     2        This Convention shall enter into force on the date of the last
 7
     notification, and thereupon the Convention shall have effect:
 8

             (a)      in the case of Australia:
 9

                      (i)     in respect of withholding tax on income that is derived
10
                              by a non-resident, in relation to income derived on or
11
                              after 1 January in the calendar year next following the
12
                              date on which the Convention enters into force;
13

                      (ii)    in respect of other Australian tax, in relation to income,
14
                              profits or gains of any year of income beginning on or
15
                              after 1 July in the calendar year next following the date
16
                              on which the Convention enters into force;
17

             (b)      in the case of Norway, in respect of taxes on income relating to
18
                      the calendar year (including accounting periods beginning in
19
                      any such year) next following that in which the Convention
20
                      enters into force and subsequent years;
21

             (c)      for purposes of Article 26, from the date of entry into force of
22
                      this Convention; and
23

             (d)      for purposes of Article 27, from a date to be agreed in an
24
                      exchange of notes through the diplomatic channel.
25

26

     3       The Convention between Australia and the Kingdom of Norway for the
27
     avoidance of double taxation and the prevention of fiscal evasion with respect to
28
     taxes on income and on capital signed at Canberra on 6 May 1982, shall be
29
     terminated and shall cease to have effect from the dates on which this
30
     Convention becomes effective in accordance with paragraph 2 of this Article.
31

32

                                       ARTICLE 30
33

34

                                        Termination
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              This Convention shall continue in effect indefinitely, but either
 2
     Contracting State may terminate the Convention by giving written notice of
 3
     termination, through the diplomatic channel, to the other State at least six
 4
     months before the end of any calendar year beginning after the expiration of
 5
     five years from the date of its entry into force and, in that event, the Convention
 6
     shall cease to be effective:
 7

             (a)      in the case of Australia:
 8

                      (i)     in respect of withholding tax on income that is derived
 9
                              by a non-resident, in relation to income derived on or
10
                              after 1 January in the calendar year next following that
11
                              in which the notice of termination is given;
12

                      (ii)    in respect of other Australian tax, in relation to income,
13
                              profits or gains of any year of income beginning on or
14
                              after 1 July in the calendar year next following that in
15
                              which the notice of termination is given;
16

             (b)      in the case of Norway:
17

                              in respect of taxes on income relating to the calendar
18
                              year (including accounting periods beginning in such
19
                              year) next following that in which the notice is given
20
                              and subsequent years.
21

22

23

     IN WITNESS WHEREOF the undersigned, being duly authorised, have signed
24
     this Convention.
25

26

27

     DONE at Canberra on this eighth day of August two thousand and six, in
28
     duplicate in the English language.
29

30

31

     FOR THE GOVERNMENT OF                        FOR THE GOVERNMENT OF
     AUSTRALIA:                                   NORWAY:


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    Minister for Revenue and   Ambassador
    Assistant Treasurer
    [Signatures omitted]
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