Task Technology Pty Ltd v Commissioner of Taxation [2014] FCAFC 113

FEDERAL COURT OF AUSTRALIA

Task Technology Pty Ltd v Commissioner of Taxation [2014] FCAFC 113 Citation: Task Technology Pty Ltd v Commissioner of Taxation [2014] FCAFC 113

Appeal from: Task Technology Pty Ltd v Commissioner [2014] FCA 38

Parties: TASK TECHNOLOGY PTY LTD (ACN 004 572 614) v THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

File number: VID 124 of 2014

Judges: DOWSETT, GORDON AND JAGOT JJ

Date of judgment: 5 September 2014

Corrigendum: 15 January 2015

Catchwords: TAXATION – International taxation – Australia-Canada Double Tax Agreement – Australian distributor of software developed by Canadian resident entity – payment of royalties under Distribution Agreement – administrative penalty for failure to withhold amount as required by Taxation Administration Act 1953 (Cth), Sch 1 s 12-280 – whether payments subject to Art 12(7) of the Convention between Australia and Canada for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income [1981] ATS 14

Legislation: Income Tax Assessment Act 1936 (Cth), ss 128B, 128C International Tax Agreements Act 1953 (Cth), ss 4, 6AB, Schs 3, 3A International Tax Agreements Amendment Bill (No 2) (2002) (Cth), [1.35] Taxation Administration Act 1953 (Cth), Sch 1 Convention between Australia and Canada for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income (21 May 1980) [1981] ATS 14 (entered into force 29 April 1981), Art 12 Protocol Amending the Convention Between Australia and Canada for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income (23 January 2002) [2002] ATS 26 (entered into force on 18 December 2002), Art 10 Vienna Convention on the Law of Treaties (open for signing 23 May 1969) [1974] ATS 2 (entered into force for Australia and generally 27 January 1980), Art 31