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Application of the MLI to the Tax Treaty between Japan and Australia

 The MLI enters into force for Japan and Australia on January 1, 2019.
 Based on the reservations and notifications submitted by Japan and Australia on September 26, 2018,
the MLI applies to the tax treaty between Japan and Australia as described below.

1. Tax treaty covered by the MLI
 - “Convention between Japan and Australia for the Avoidance of Double Taxation and the Prevention of
  Fiscal Evasion with respect to Taxes on Income”
  Date of signature: January 31, 2008
  Date of entry into force: December 3, 2008

2. Provisions of the MLI applicable to the tax treaty
 - Article 4(1) (Provisions that provide rules for determining whether a person other than an individual shall
  be treated as a resident of one of the Contracting Jurisdictions for the purposes of the tax treaty)
 - Article 6(1) (Preamble language describing the intent of the Contracting Jurisdictions that the tax treaty will
  not create opportunities for non-taxation or reduced taxation)
 - Article 6(3) (Preamble language referring to a desire of the Contracting Jurisdictions to develop their
  economic relationship and to enhance their co-operation in tax matters)
 - Article 7(1) (Provisions that deny the benefits under the tax treaty where the principal purpose or one of the
  principal purposes of any arrangement or transaction was to obtain those benefits)
 - Article 9(1) (Provisions regarding requirements for determining whether shares or interests of entities
  derive their value principally from immovable property)
 - Article 13(2) (Provisions regarding an activity that is deemed not to constitute a permanent establishment
  even if the activity is carried on through a fixed place of business)
 - Article 13(4) (Provisions for combining business activities carried on by closely related persons for the
  purpose of determining whether a permanent establishment exists)
 - Article 15 (Provisions for the definition of a person closely related to an enterprise)
 - Article 16(1), 1st sentence (Provisions for presentation of a case of taxation not in accordance with the
  provisions of the tax treaty for a mutual agreement procedure)
 - Part VI (Provisions regarding arbitration for resolving a case of taxation not in accordance with the
  provisions of the tax treaty)
 - Article 19(12) (Provisions that provide that an unresolved issue arising from the case on which a decision has
  already been rendered by a court or administrative tribunal shall not be submitted to arbitration)
 - Article 23(2) (Provisions regarding the arbitration process in which the arbitration panel shall make its own
  decision on the issues submitted to arbitration based on information provided by the competent authorities)
 - Article 23(5) (Provisions regarding non-disclosure obligation on the presenters of the case for any information
  received during the course of arbitration proceedings)
 - Article 28(2)(a) (Provisions regarding the scope of cases eligible for arbitration)

3. Entry into effect
 (a) The provisions of the MLI shall have effect in each Contracting Jurisdiction with respect to the
  tax treaty between Japan and Australia:
  (i) with respect to taxes withheld at source on amounts paid or credited to non-residents, where the
   event giving rise to such taxes occurs on or after January 1, 2019; and
  (ii) with respect to all other taxes levied by that Contracting Jurisdiction, for taxes levied with
   respect to taxable periods beginning on or after July 1, 2019.
 (b) Notwithstanding (a), Article 16 (Mutual Agreement Procedure) shall have effect with respect to
  the tax treaty between Japan and Australia for a case presented to the competent authority of a
  Contracting Jurisdiction on or after January 1, 2019, except for cases that were not eligible to be
  presented as of that date under the tax treaty between Japan and Australia prior to its modification
  by the MLI, without regard to the taxable period to which the case relates.
 (c) Notwithstanding (a) and (b), the provisions of Part VI (Arbitration) shall have effect:
  (i) with respect to cases presented to the competent authority of a Contracting Jurisdiction (as
   described in subparagraph a) of paragraph 1 of Article 19 (Mandatory Binding Arbitration)), on
   or after January 1, 2019; and
  (ii) with respect to cases presented to the competent authority of a Contracting Jurisdiction prior to
   January 1, 2019, on the date when both Contracting Jurisdictions have notified the Depositary
   that they have reached mutual agreement pursuant to paragraph 10 of Article 19 (Mandatory
   Binding Arbitration), along with information regarding the date or dates on which such cases
   shall be considered to have been presented to the competent authority of a Contracting
   Jurisdiction (as described in subparagraph a) of paragraph 1 of Article 19 (Mandatory Binding
   Arbitration)) according to the terms of that mutual agreement.