Published on 01 Feb 08
by "THE TAX SPECIALIST" JOURNAL ARTICLE
The Australian Taxation Office’s decision in ID 2007/2 considered the application of the exemption in the United States Double Taxation Agreement from source State taxation on interest paid to non-resident financial institutions. The decision considers the application of the exemption to a particular hybrid finance structure and denies the exemption based on an integrity measure in the treaty. The decision has important implications for cross-border hybrid finance. This article examines the reasoning behind the decision and questions whether the ATO has adopted an appropriate interpretation of these treaty provisions.
Philip is a Barrister and member of the Institute of Chartered Accountants practising in State and Federal taxation, superannuation and commercial law. He is also a sessional member of the Victorian Civil and Administrative Tribunal (although he still appears as a barrister in the tax list of that Tribunal). Philip advises and appears for taxpayers and revenue authorities in State and Federal courts and tribunals and has appeared on a number of occasions in the High Court. He has also been briefed by other government agencies including ASIC, the Official Trustee in Bankruptcy and the Victorian Government Solicitor's Office.
- Current at
01 September 2011