2.180 It was expected that the competent authorities would reach an agreement that other exchanges constitute a recognized stock exchange within the meaning of the agreement. (Article 3, first paragraph, point (l) (iii)] In most cases, POPs cases are cross-border double taxation. This can happen if the national tax provisions of two jurisdictions overlap. The two types of double taxation are as follows: 1.8 The corresponding regulatory requirements must be imposed by legislation, legal instrument, mandatory code of a regulatory authority or other similar regulatory requirements. Therefore, the agreement reached for the creation of the DLC will not be a relevant regulatory requirement for the purpose of fulfilling the definition. 2.375 Cases referred to in paragraph 1 may have recourse to the arbitration mechanism only if the competent authorities are unable to reach an agreement with the competent authority of the other country within two years of the first complaint filed by the competent authority of a country. If the case is not resolved after this period, the person may request that the arbitration mechanism be applied. Access to arbitration is automatic in such cases; it shall not be subject to the special agreement of the competent authorities. 2.378 Not all unresolved issues arising from the matter can be resolved through arbitration. Paragraph 7 of this Article provides that the matters to which the arbitration mechanism applies are factual issues on which Australia and New Zealand agree in an exchange of notes shall be covered by the arbitration mechanism. When it comes to unresolved factual issues and other unresolved issues (e.g.
B the interpretation of a specific provision of the Convention), only the actual issues can be resolved by arbitration. The mutual agreement procedure will continue to apply on other issues. (Article 25(7)) In this context, double taxation may occur if: 2.377 Unlike the mutual agreement procedure that may be used, if a taxpayer considers that taxation not in accordance with the Convention will occur or could occur, the arbitration mechanism is available only with regard to actual taxation which is contrary to the Convention and which results from the actions of Australia or New Zealand, Or both. This would include cases where a tax or tax destination has been made or where the taxable person has been formally informed by the ATO or the New Zealand Revenue Department that he or she is taxed on a performance item. (Article 25(6)) The text of the new double taxation convention is available under www.taxpolicy.ird.govt.nz 2,295 maintenance payments and other maintenance payments are taxable only in the country where the payer is established. The purpose of this paragraph is to eliminate any possibility of double taxation of such payments resulting from the processing of such payments in accordance with the national law applicable to both countries. In the case of Australia, these payments generally remain exempt from Australian tax in the hands of the beneficiary and are not deductible to the payer. . . .