The Australian Taxation Office (ATO) released, for comment, draft Taxation Ruling TR 2006/D3 explaining the position of the ATO on the operation of the withholding tax rules in respect to payments to non-residents for works and related activities.
By way of background, Secs. 12-315 and 12-317 of Schedule 1 to the Taxation Administration Act 1953 require that a 5% tax be withheld from payments to non-residents, as prescribed by regulations. Regulation 44C of the Taxation Administr…