The text of the new double taxation agreement is available at www.taxpolicy.ird.govt.nz 2,316 dividends and profits, are obtained by a New Zealand company based in Australia and exempt from Australian tax under performance reporting measures from foreign sources (e.g. B sections 23AH or 23AJ of ITAA 1936), which are exempt from Australian tax under these provisions (z.B. sections 23AH or 23AJ of ITAA 1936). Since there is no double taxation in these cases, the form of credit for decongestion is irrelevant. 2.373 In some cases, the competent authorities will not agree on a solution to a particular case. Paragraph 6 of this section provides for the use of an arbitration procedure to resolve these cases. The provisions of this paragraph are largely consistent with the provisions of Article 25, paragraph 5 (mutual agreement procedure) of the OECD model. 2.312 However, it is necessary to impose a method of double taxation relief for other categories of income, profits or profits that will continue to be taxed in both countries under the Convention. In accordance with international practice, Australian tax treaties provide for double tax relief by the taxpayer`s country of residence through an exemption from foreign income or a credit or deduction from his or her tax on the country of origin. This article also reflects this approach. 2.367 The competent authorities can also work together to eliminate double taxation in cases where the convention does not provide a solution. However, to eliminate this double taxation, the competent authorities must act within their legal powers.
During the negotiations, delegations found that if an agreement is not reached within two years on factual issues, access to arbitration is provided. “With regard to the provision which allows the competent authorities to consult, in cases not provided for by the Convention, on the elimination of double taxation, it should be considered that the competent authorities do not have additional powers beyond their usual legal powers.” Australia is required to provide double tax relief for New Zealand taxes levied on the portion of interest allocated to Australian-based shareholders. Double taxation agreements are bilateral agreements that remove tax barriers to cross-border trade and investment and prevent businesses from being taxed twice on the resulting revenues. They also provide greater certainty about how cross-border revenues are taxed, reduce compliance costs for businesses and reduce taxes on certain revenues.