This Determination, issued on Wed 4.6.2014, states that a UK company “holds directly” at least 10% of the voting power in an Australian company for the purposes of Article 10.2(a) of the United Kingdom Convention (ie the Australian-UK double taxation agreement (DTA)) where:
- a nominee shareholder owns shares carrying at least 10% of the voting power in the Australian company for the benefit of the UK company; and
- the nominee undertakes to UK company to exercise all rights of voting and other privileges attaching to the shares in such manner as UK company shall direct or approve.
DATE OF EFFECT: Applies to years of income commencing both before and after its date of issue.
[LTN 106, 4/6/14]