TLAW603 – Week 4.
TLAW603 – Week 4
Sample Exam Questions
(1) A double taxation agreement (DTA) is designed to prevent double taxation in a number
of ways including:
(a) by allocating the exclusive taxing rights to one of the countries to the DTA;
(b) by prescribing tie-breaker rules used in cases where a taxpayer is subject to tax in
both Contracting States;
(c) requiring the country in which a taxpayer is a resident to provide relief from double
(d) All of the above.
(2) The case of Federal Coke Pty Ltd v FC of T is authority for the proposition that:
(a) the character of an amount is determined in the hands of the person who derives it;
(b) the rate of GST is 20%;
(c) only statutory income is taxed under the ITAA97;
(d) the ITAA36 is redundant.
(3) “The decision of the Court in Bywater Investments Ltd & Ord v FC of T  HCA 45
reminds us that ‘central management and control’ is always a factual test. The case
emphasises the importance of the degree of independent and informed judgement
required by a board of directors in order for a company to be treated as a nonresident.”
Do you agree with this proposition? Explain your answer and ensure you provide a
detailed explanation of the facts and issues arising in this case, an assessment of the
High Court’s judgement and refer to the relevant legislative provisions which this case is