Income Tax (International Agreements) Act 1959

2 Commencement.

2. This Act shall come into operation on the day on which it receives the Royal Assent.

3 Ascertainment of Australian tax, other than dividend (withholding) tax, on dividends.

3. Section sixteen of the Principal Act is amended—

(a) by inserting in sub-section (8.), after the definition of “apportionable deduction”, the following definition:—

“‘Australian tax’ means Australian tax other than dividend (withholding) tax;”; and

(b) by inserting in sub-paragraph (ii) of paragraph (b) of the definition of “the average rate of tax” in sub-section (8.), after the word “tax” (first occurring), the words “(other than a rebate under the Act imposing tax for the year of tax)”.

4 Rebates of excess tax on dividends included in assessable income.

4. Section seventeen of the Principal Act is amended by inserting in sub-section (1.), after the word “dividend” (first occurring), the words “, being a dividend included in the assessable income of a taxpayer,”.

5. After section seventeen of the Principal Act the following section is inserted:—

Dividend (withholding) tax.

“17a. Where a provision of an agreement limits the amount of Australian tax payable in respect of a dividend, being a dividend in respect of which dividend (withholding) tax is payable, and the amount of that dividend (withholding) tax exceeds the limit specified in the agreement, the liability of the taxpayer for the dividend (withholding) tax shall be reduced by an amount equal to the amount of the excess.”.