NO.003

Bilateral Tax Talks Scheduled on UK-Aussie Tax Arrangements

Treasury and tax officials from Australia and the United Kingdom will meet

in Canberra during March as part of the negotiation process to update the Double

Taxation Agreement between the two countries, the Treasurer, announced today.

Double Taxation Agreements have the twin goals of avoiding double taxation and

preventing tax evasion.

The existing Agreement and an amending Protocol were signed in 1967 and 1980

respectively and need updating to accommodate modern business practice and treaty

policy.

The aim of the negotiations is to update the existing Agreement to streamline

and encourage trade and investment arrangements between the two countries. The

negotiations are important as the United Kingdom is one of Australia’s largest

trading and investment partners.

Renegotiation of the existing Agreement forms part of the Government’s commitment

to update aging treaties with major trading partners as recommended by the Ralph

Report.

The Australian Taxation Office has already sought comments from the business

community on the negotiations through the Tax Treaties Advisory Panel, and is

now trying to ensure that all taxpayers that have major transactions with the

United Kingdom, and are likely to be affected by any changes to the Agreement,

are consulted.

This consultation process is designed to ensure that the renegotiated Agreement

recognises the day to day needs and experiences of all those who have dealings

between the United Kingdom and Australia.

Interested parties are invited to make written submissions to the Australian

Taxation Office by 15 February 2002. Submissions should be addressed to Mr Paul

McBride, International, Australian Taxation Office, 2 Constitution Ave, Canberra

ACT 2608.

CANBERRA

25 January 2002

Contact: Niki Savva (02) 6277 7340