International Tax Agreements Amendment Bill (No. 2) 2002

5 The lack of cohesion in the interpretation of the Treaty is another possible source of inconsistent results. The bilateral tax treaties of the MLI and Australia are part of Australian domestic law by the Act of Parliament[7], but they are international agreements and, as they are international agreements, the interpretative principles applicable to the elaboration of these treaties are not governed by national principles of statutory interpretation, but by Articles 31 to 33 of the Vienna Convention on the Law of Treaties[8] (Vienna Convention). Article 31 requires that a contract be interpreted in “good faith in accordance with the usual importance to be given to the contractual terms in their context and in the light of its object and purpose”. 2.65 If a term is not defined in the convention, but has international meaning in tax treaties and meaning in domestic law, the context would normally require that the international meaning be applied. [Article 3(3)] 2.13 Article 10 of the existing agreement does not allow Malaysia to levy a tax on dividends. . . .

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