Assuming that Engolstadt Co. is now owned by a second company established in Germany, Erfert Co, and a company established in Japan, Aichi Co. Erfert Co. is listed on a stock exchange which is a `recognised stock exchange` at the request of point (m)(ii) of the first paragraph of Article 3 of the German Agreement. Aichi Co is listed on a stock exchange which is a “recognised stock exchange” within the meaning of Article 23 of the Japan Agreement. Each company holds 50% of the shares in Engolstadt Co. 1.57 The existing German taxes, which are expressly subject to the German agreement, are income tax, corporation tax, business tax and capital tax, including increases levied on these taxes. While the German agreement explicitly refers to capital tax, Germany did not, in practice, impose its capital tax at the time of the signing of the German agreement. [Article 2, paragraph 3, lit.b] 1.154 Art.
6 (income from fixed assets) of the German agreement uses the term `immovable property` instead of the current practice of the Australian tax treaty, which is called `immovable property`. Subsection 3(5) of the Act 1953 Agreement confirms that the term `immovable property` within the meaning of this Agreement includes `immovable property`. So there is no difference in meaning between the two concepts. 1.427 The case must be brought before a competent authority within three years of the first notification of the document which, according to the person who is not in conformity with the German agreement, cannot be taxed. The submission of a case shall not deprive the person of access to other remedies available under the national law of both countries or affect his or her rights in respect of those countries. [Article 25(1)] • Exemption from double taxation is provided for income, profits or profits which may be taxed in both countries under the German Convention. Overall, such a remedy must be granted by the country where the taxable person is established as follows: for the purposes of Articles 10 to 12 and Article 22(1) and (2)(b) of the German Agreement of 1972, the term `tax` does not include penalties or interest imposed under the law of either country. The inhabitant of the other country may apply, within four years of the end of the calendar year in which the corresponding income is received, for a refund of the amount of withholding tax higher than the rate laid down in the German Agreement. 1.156 Some of Australia`s tax treaties exclude profits from an agricultural or forestry business from the application of this section.
These profits are generally treated in accordance with Article 7 (Business Profits) of the Australian tax treaties. However, according to the German agreement, the allocation of taxing rights between those profits is determined by Article 6 (income from immovable property). As a result, profits from the relevant activities may be taxed in Australia, where the property is located in Australia, whether or not the enterprise has a permanent establishment in Australia. [Article 6(1)] 1.363 If point (a) of the second subparagraph of paragraph 2(a) of this Article does not apply, double taxation shall be eliminated by a tax credit referred to in point (c) of paragraph 2 of this Article. . . . .