Tax Information
This discussion of Australian, UK and US tax law considerations is intended only as a descriptive summary and does not purport to be a complete technical analysis or listing of all potential tax effects relevant to the ownership of ordinary shares or ADRs. If a shareowner is in any doubt about their tax position, or is resident or otherwise subject to taxation in a jurisdiction other than Australia, the UK or the US, they should contact their own professional adviser.
The summary of UK, US and Australian tax laws set out below is based: (i) on the laws in force as at 1 January 2005, and is subject to any changes in UK, US or Australian law, in any double taxation convention between the US and the UK, Australia and the UK or in UK Inland Revenue practice, occurring after 1 January 2005; and (ii) in part on representations of the Depositary and assumes that each obligation provided for in, or otherwise contemplated by, the Deposit Agreement and any related agreement will be performed in accordance with its terms. This summary is not exhaustive of all possible tax considerations and holders of ordinary shares or ADRs are advised to satisfy themselves as to the overall tax consequences of their ownership of ordinary shares or ADRs and the ordinary shares represented thereby, by consulting their own tax advisers. This summary does not deal with the UK tax consequences for a US or Australian resident shareowner that is resident, or in the case of an individual, ordinarily resident, for UK tax purposes in the UK or that carries on business in the UK through a permanent establishment.
On 24 July 2001, the US and the UK signed a new double taxation convention which came into force on 31 March 2003 (the "New US-UK Convention"). The discussions below regarding US residents are based on the articles of the New US-UK Convention.
For the purpose of the New US-UK Convention and for the purposes of the US Internal Revenue Code of 1986, as amended, and the rules and regulations thereunder (the "Code"), discussed below, the holders of ADRs should be treated as the owners of the underlying ordinary shares that are evidenced by such ADRs.
On 21 August 2003, Australia and the UK signed a new double taxation convention (the "New Aus-UK Convention"). The New Aus-UK Convention came into force on 17 December 2003, replacing the existing double taxation convention and amending Protocol signed in 1967 and 1980 respectively (the "Old Aus-UK Convention"). Under the New Aus-UK Convention, the general withholding tax limit in respect of dividends of 15% will continue to be imposed. However, this limit has no application where the domestic tax law does not apply a dividend withholding tax, as is the case in the UK. Under the Old Aus-UK Convention an Australian resident shareowner was entitled to claim a tax credit from the Inland Revenue in respect of dividends received from a UK resident company, subject to a notional withholding tax. The payment of such tax credits is not provided for in the New Aus-UK Convention and was, therefore, effectively abolished with effect from 1 July 2004.
Please see the following pages for further information on taxation:
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