Tech Mahindra Ltd v Commissioner of Taxation : [2015] FCA 1082

Resource Information

The work Tech Mahindra Ltd v Commissioner of Taxation : [2015] FCA 1082 represents a distinct intellectual or artistic creation found in International Bureau of Fiscal Documentation. This resource is a combination of several types including: Work, Language Material, Continuing Resources.

Label

Tech Mahindra Ltd v Commissioner of Taxation : [2015] FCA 1082

Contributor

• Baker, P

Subject

• OECD Model
• PE
• case law
• force of attraction
• royalties
• services
• tax treaty
• transfer of technology
• treaty interpretation

Language

eng

Summary

This is an interesting case on the application of a tax treaty containing a number of variations from the OECD Model to the supply of services in connection with computer technology and software. The taxpayer company was the successor to an Indian company, Satyam, which supplied computer technology services to customers in Australia. The company had a permanent establishment in Australia at the relevant time, and it was accepted that the services supplied via the personnel located in the permanent establishment in Australia (referred to as 'the Australian Services') were taxable in Australia. However, in addition, certain services were supplied by personnel located in India to the customers in Australia ('the Indian Services'), and the question was whether some or all of those services were taxable in Australia. The tax treaty in question - the 1991 agreement between Australia and India - departed from the OECD Model in a number of significant respects. First, the business profits Article contained a limited force of attraction provision which brought within the scope of that Article similar supplies of goods and services to those made through the permanent establishment. Secondly, the definition of 'royalty' for the purposes of the royalties Article included fees for the supply of certain technical services within the definition

Citation source

In: International tax law reports. - London. - Vol. 18 (2016), part 3; p. 239-290

Language note

English