Treaty between Australia and US – ATO explains treaty shopping

On 11 September 2007, the Australian Taxation Office (ATO) issued Interpretative Decision ATO ID 2007/177 in which it explained that the establishment, acquisition or maintenance of a holding company in the United States for the purpose of investing into Australia will not, by itself, be the reason to deny treaty benefits under the Australia-US tax treaty. This is notwithstanding that the availability of the treaty benefits for the holding company will be denied under …