Your shopping cart is empty
The influence of alternative model tax treaties on Australian treaties
Published on 01 Mar 11 by "AUSTRALIAN TAX FORUM" JOURNAL ARTICLE
Australia draws from both the OECD Model tax treaty and the UN Model when negotiating its tax treaties. While the two Models are similar, the OECD Model tends to favour capital exporting nations by shifting more taxing rights to the country in which investors reside and the UN Model tends to favour capital importing nations by allowing source countries to retain more taxing rights. Australia is an active member of the OECD and generally its treaties follow the OECD Model. However, Australia shifts to greater reliance on the UN Model when negotiating Articles that cover the types of income generated in sectors in which Australia relies more heavily on imported capital. This paper looks at relative influence of the OECD and UN Models on four key areas of Australia's tax treaties. These are articles that cover income derived by nonresidents as business profits of a permanent establishment, capital gains from the sale of Australian assets, investment income (interest, royalties and dividends), and "other income" not otherwise specified in the treaties. It considers the factors that may have influenced Australia to follow one Model or the other or neither in the negotiation of these treaty measures.
Author profiles
Kathrin Bain
Kathrin is a Lecturer, School of Taxation and Business Law, UNSW Business School, UNSW Sydney - Current at 29 May 2019
Richard Krever
Richard is a professor in the Law School at the University of Western Australia. - Current at 15 April 2020Tony Van Der Westhuysen
Tony works in Taxation Law and Policy Research Institute, Monash University. - Current at 01 March 2011
The Tax Institute is Australia's leading professional association and educator in tax providing the best resources, professional development and networks.