The Australian Tax Office issued on 23 December 2005 an interpretative decision, ATO ID 2005/355 dated 3 November 2005, Withholding Tax: Exemption from interest withholding tax for a German bank undertaking central bank activities.
The taxpayer, a State-owned bank in Germany, intends to invest in interest-bearing investments in Australia. The investments will be of an ordinary commercial nature. The bank's funds are not limited to state funds but also include funds from corporat…