Double Tax Agreement Switzerland Australia

3.9 The Swiss Convention contains a number of provisions relating to the tax debt of different categories of persons, including “nationals” of the contracting states. Article 23 of the Swiss Convention guarantees non-discrimination against australian and Swiss nationals under the treaty and Article 22 provides an exemption from the double taxation of certain income from residents of Australia and Switzerland. 1.300 The arbitration mechanism is not intended to be an alternative to the mutual agreement procedure. Once the competent authorities have reached an agreement that leaves no outstanding issues, this case is not at issue for arbitration, even if the taxpayer does not agree with the solution that has been found. However, where an issue remains unresolved and taxation contrary to the Swiss convention is maintained, the competent authorities cannot, alone or collectively, examine the case and deny the person access to the arbitration mechanism. 1.301 Unlike the mutual agreement procedure that can be invoked where a tax payer believes that a tax that does not comply with the contract has been or will be managed, the arbitration mechanism is only available for effective taxation that is contrary to the agreement resulting from the actions of Australia or Switzerland or both. This would include cases in which a tax or tax fixing has been made or, in other way, where the taxpayer has been formally informed by the Australian or Swiss tax authorities that he or she is being taxed on a product item. [Article 25, paragraph 5] b) The competent authorities are unable to reach agreement on the solution of this situation under paragraph 2 within three years of the case being presented to the competent authority of the other contracting state; 1,217 income from employment on board a ship or aircraft operating in international traffic may be present in the country subject to tax on the company operating the vessel or aircraft. For example, an Australian-based pilot employed by a Swiss-based airline would be taxable in Switzerland for his remuneration for services on international flights and would be entitled to a tax credit in Australia for Swiss tax paid under Article 22 (removal of double taxation).

[Art. 15, para. 3] 2.8 An amendment is made to clarify that any reference to the concept of “real estate” in an international agreement contains a reference to real estate and its Australian national significance. [Annex 1, point 8, Accords Act 1953 Subsection 3 (5)] 1.134 It was also envisaged that the competent authorities could agree that other scholarships constituted a recognised scholarship within the meaning of the Swiss Convention.

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