This Draft TD, issued on Wed 12.3.2014, states that a UK resident company that beneficially owns a dividend paid by an Australian resident company, “holds directly” at least 10% of the voting power in the Australian company for the purposes of Article 10.2(a) of the Australia-UK DTA (the Dividends article) in the following circumstances:
- a nominee shareholder owns shares carrying at least 10% of the voting power in the Australian resident company for the benefit of the UK resident company; and
- the nominee undertakes to the UK resident company to exercise all rights of voting and other privileges attaching to the shares in such manner as the UK resident company shall direct or approve.
DATE OF EFFECT: When the final Determination is issued, it is proposed to apply both before and after its date of issue.
COMMENTS are due by 11 April 2014. ATO contact: Chris Tate – Tel: (07) 3213 6129; Fax (03) 8632 4036; Email: Christopher.Tate@ato.gov.au.
[LTN 48, 12/3/14]