The above navigation area can be used to access the texts of the corresponding agreements. If Australian taxpayers have foreign income, the DBA must be controlled for the country where foreign income is collected. The DBA will determine whether foreign income is taxable in Australia, taxable only abroad or taxable in both countries (subject to the possibility that foreign tax offsets may be available to avoid double taxation). South Africans who live and earn in Australia are covered by this double taxation agreement. The Australian Tax Office (ATO) has asked SARS for information on a person suspected of evading his Australian tax obligations. The application was made within the meaning of the applicable double taxation agreement. The information was known to a South African resident: Werner van Kets. In the search for van Kets, SARS relied on provisions of the Income Tax Act that required the provision of information to SARS. For example, Australian taxpayers are generally taxed on global income, that is, Australian and foreign income. It is therefore clear that the income of foreign companies is taxable in Australia. But an Australian taxpayer with South African business income must read the South African DBA to determine how the company`s income is taxed.
The South African DBA agreement stipulates that when Australian tax residents operate in South Africa, these business incomes are taxed only in South Africa. This means that the income of South African companies in Australia is not taxable. Is there a double taxation convention between South Africa and the United States? If you are a South African employed in the United States of America, there has been a double taxation agreement between the two countries since 1997. South Africa has double taxation agreements with a number of countries. The main objective of these agreements is generally regarded as the prevention of double taxation. The agreements essentially distribute tax duties between the contracting countries if both parties can claim such rights. However, these agreements have another purpose. This is the prevention of tax evasion by taxpayers in the States Parties.
The agreements between the two tax administrations in two countries are intended to allow administrations to eliminate double taxation. A strict interpretation of the provisions in this area seemed to favour van Kets` assertions.