premier ofqueensland

Premier of Queensland

For reply please quote: IGRMlL - TF/11/31225 - DOC/11/189456

.. BDEC 2011

Mr Neil LaurieClerk of the ParliamentParliament HouseGeorge StreetBRISBANE QLD 4000

Dear Mr Laurie

Executive Building100 George Street Brisbane

PO Box 15185 City EastQueensland 4002 Australia

Telephone +61732244500Facsimile +617 3221 3631Email [email protected] www.thepremier.qld.gov.au

In accordance with parliamentary procedures, I wish to table correspondence from theCommonwealth Parliament's Joint Standing Committee on Treaties (JSCOT) in theLegislative Assembly.

The material for tabling includes JSCOT's advice and the following six proposed treatyactions, as well as, their National Interest Analyses:

Treaties tabled on 2 November 2011

• Agreement between the Government of Australia and the European SpaceAgency for a Co-Operative Space Vehicle Tracking Program done at Cape Townon 5 October 2011

• Revised MARPOL Annex V: Regulations for the Prevention of Pollution byGarbage from Ships (Resolution MEPC.201(62)) Adopted at London on 15 July2011

• Agreement between the Government of Australia and the Government of thePrincipality of Liechtenstein on the Exchange of Information on Taxes done atVaduz on 21 June 2011

• Agreement between the Government ofAustralia and the Government of theMacao Special Administrative Region of the People's Republic of China for theExchange of Information Relating to Taxes signed in Macao on 12 July 2011

• Agreement between the Government ofAustralia and the Government of CostaRica on the Exchange of Information with Respect to Taxes, Mexico City 1 July2011

• Agreement between the Government of Australia and the Government of Liberiaon the Exchange of Information with Respect to Taxes (Monrovia on 11 August2011).

QueenslandGovernment

Treaty texts and copies of the National Interest Analyses, which accompany each treatytabled, are also available online from the committee's website at the following link:www.aph.gov.au/house/committee/jsct/2november2011/index.htm.

Thank you for your assistance in arranging the tabling of this material as soon aspossible.

Yours sincerely

ANNA BLIGH MP I~1PREMIER OF QU :;hSlAND

*Encls

of2

JOINT 81'ANDING COMMITTEE ON TREATIESParliament House, Canberra ACT 2600 1Phone: (02) 6277 40021 Fax: (02) 6277 22191 Email: [email protected]

2 Novembellf2011

The Han AlUla Bligh MPPremier of QueenslandParliament HouseBRISBANE QLD 4002

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Dear Premier


I am writing to advise of the most recent tabling of treaties, and to invite commentsas part of the review process undertaken by the Commonwealth Parliament's JointStanding Committee on Treaties.

Before action is taken to bind Aush'alia to the terms of treaties, the TreatiesCommittee considers and reports on whether the proposals are in Australia'snational interest. The Committee is currently inquiring into the following proposedh-eaties tabled in both Houses of the Parliament this week:


e Agreement between tile Government ofAustralia and the European Space Agencyfora Co-Operatiz1e Space Velticle Tracking Program done at Cape Town 011 5 Octobet2011

CIS ReI1ised MARPOL Annex V: Regulations for the Prevell lion ofPollution by Garbagefro111 Ships (Resolution MEPC201(62)) Adopted at London 01115 July 2011

.. Agreenzent between the Government ofAustralia and the Government ofthePrincipality afLiechtenstein on the Exc1umge ofInformation 011 Taxes done at Vaduzon 21 June 2011

• Agreement between tlte Government ofAustralia Ilnd the Government of the MacaoSpecial Ad11linistmtitJe Region of the People's Republic ofChina for the Exchange ofInformation Relating to Taxes signed in Macao on 12 July 2011

• Agreement between tlte Govermnent ofAustralia and the Government ofCosta Rica011 the Exchange ofInformation with Respect to Taxes, Mexico City 1 July 2011

CIS Agreement lJetween Hie Government ofAusb'alia and the Government ofLiberia 011

the Exchange of Information with Respect to Taxes (Monro'oia 01111 August 20.11)

The subject matter of international h"eaties can be of interest to State and TerritoryGovernments and Parliaments and we are keen to provide an opportunity forcomment on any issues arising from proposed heaties. Treaty texts and copies of theNational Int;rest Analysis (which accompany each treaty tabled) are available fromthe Committee's website athttp://\>\'vvw.aph.gov.au/house/conunittee/jsct/2november2011/tor.htm

As the Treaties Committee has periods of 15 and 20 sitting days in which to completeits reviews, it would be helpful if you could forward any comments you might wishto l11.ake to the Committee Secretariat by Friday, 16 December 2011. If substantialissues of concern are raised about the proposed h"eaties and the Committee's usualperiod of review is extended, it may be possible to arrange for a submission to belodged after this date. Your comments m.ay be accepted as a submission to thereview and authorised for publication.

Should your officials have any questions about the b"eaties or about our reviewprocedures, they should contact James Catchpole, Conunittee Secretary on telephone(02) 62774002, facsimile (02) 62772219 or e-mail [email protected].

Yours faithfull y

Senator Simon BirminghamActing Chair .

DEPARTMENT OF FOREIGN AFFAIRS AND TRADECANBERRA

AGREEMENT

BETWEEN

THE GOVERNMENT OF AUSTRALIA

AND

THE EUROPEAN SPACE AGENCY

-FOR A CO-OPERATIVE SPACE VEHICLE TRACKING PROGRAM

done at Cape Town on 5 October 2011

Not yet in force[2011] ATNIF 23

THE GOVERNMENT OF AUSTRALIA AND THE EUROPEAN SPACE AGENCY ("the

Parties"),

DESIRING TO BUILD on the longstanding co-operation in space vehicle tracking established since

1976,and

RECOGNISING the importance of the European Space Agency's Australian facilities, including

particularly at New Norcia, to the mutual benefit ofthe Parties, and

CONSIDERING that the purpose of the European Space Agency is to promote space research and

technology for space applications exclusively for peaceful purposes, and that the Australian Government

is committed to utilizing and developing space and its applications also for peaceful purposes, and

DESIRING to strengthen the mutual benefits of international scientific and educational co-operation

gained through the peaceful uses of space,

HAVE AGREED AS FOLLOWS:

ARTICLE 1

For the purposes of this Agreement:

(a) "Agency" means the European Space Agency which is responsible for giving effect to this

Agreement on the European side;

(b) "Agreed Activities" means the activities referred to in Article 2;

(c) "Australian co-operating agency" means, unless otherwise determined by the Australian

Government, the Department of Innovation, Industry, Science and Research, which shall be

responsible on the Australian side for giving effect to this Agreement;

(d) "Convention" means the Convention for the Establishment of a European Space Agency,

which was opened for signature in Paris on 30 May 1975 and entered into force on 30

October 1980; and

2

(e) "Facilities" means facilities owned and operated by the Agency, owned by the Agency and

operated by a third party on behalf of the Agency, or facilities not owned by the Agency and

providing space tracking services to the Agency,

(f) "Implementing Arrangements" means the arrangements concluded pursuant to Article 4.1.

ARTICLE 2

1. The Agency, in association with the Australian Govemment, may participate in Australia in the

following activities:

(a) tracking and te1ecommand of the Agency's space vehicles or other space vehicles as may be

arranged between the Agency and the Australian co-operating agency, and

(b) acquiring data from these space vehicles.

2. The space vehicles referred to in paragraph 1 shall be operated in accordance with the Convention

and for civil research and technology and their space applications.

ARTICLE 3

In order to participate in the Agreed Activities, the Agency may, in accordance with this Agreement

and the Implementing Arrangements, make use of the Facilities in Australia designated in the

Implementing Arrangements.

ARTICLE 4

1. The Agreed Activities, including the establishment, operation, maintenance and use of the

Facilities, shall be undertaken by the Agency and the Australian Govemment in accordance with

the Implementing Arrangements. The Implementing Arrangements shall be made consistent with

the terms ofthis Agreement.

2. The Agency shall notify the Australian Govemment of its operational requests, or any changes to

these, in writing.

3. The Implementing Arrangements may be modified by mutual determination between the

Agency and the Australian co-operating agency.

3

ARTICLE 5

Except as otherwise provided in this Agreement, the Agency shall bear the costs of operating and

maintaining the Facilities that it requires for the purposes of this Agreement and the costs of establishing

any new Facilities, subject to any contribution by the Australian Government, as the Parties may from time

to time arrange.

ARTICLE 6

The Agency and the Australian Government shall, in accordance with their respective rules and

procedures, provide each other, on request, with scientific data acquired through the Agreed Activities, and

with the results of any consequent studies. The publication of such results shall be subject to any priority

rights of scientific investigators.

ARTICLE 7

1. The Facilities used for the Agreed Activities may be used for independent Australian activities

endorsed by the Australian Government and for other independent scientific activities as may be

arranged between the Agency and the Australian Government. Such activities shall be

conducted so as not to interfere with the conduct of the Agreed Activities. The Agency shall not

become liable for any costs arising from such use of the Facilities.

2. If the Australian Government wishes, it may for its own purposes and at its own cost construct

facilities and install and use equipment on the site of the Facilities referred to in the

Implementing Arrangements provided this does not interfere with the Agreed Activities. Use by

the Agency of such facilities constructed by the Australian Government shall be covered by a

separate arrangement between the Agency and the Australian co-operating agency.

ARTICLE 8

The Agency and the Australian co-operating agency shall make freely available to each other details in

regard to all Agreed Activities and to the planning of all Agreed Activities undertaken pursuant to this

Agreement.

4

ARTICLE 9

The Agency shall retain title to equipment, materials, supplies and other property brought into or

acquired in Australia by it or on its behalf at its own expense, for the Agreed Activities. Consistent with

this Agreement, the Agency may remove such property from Australia at its own expense and free from

export duties or similar charges, upon the termination of this Agreement or upon reasonable notice to

the Australian Government. Such property shall not be disposed of within Australia except under

conditions acceptable to both the Agency and the Australian Government.

ARTICLE 10

1. The Australian Government shall, in accordance with its laws, regulations and procedures,

facilitate the entry into and temporary stay in Australia of persons not normally resident in

Australia employed or engaged as staff, consultants or contractors by the Agency in connection

with the Agreed Activities.

2. The effects for the personal and household use of such persons entering Australia for the

purpose of the Agreed Activities shall be permitted free entry in accordance with Australian

customs law in effect at the date the goods are imported.

ARTICLE 11

1. The Australian Government shall take the. necessary steps to facilitate the admission into

Australia of all equipment, materials, supplies and other property provided by or on behalf of

the Agency in connection with the Agreed Activities.

2. No duties, taxes or like charges other than indirect taxes shall be levied on the equipment,

materials, supplies and other property which are certified by the Agency to be imported for use

in the Agreed Activities and which it certifies at the time of entry are, or are intended to be, the

property of the Agency.

3. For the purposes of this Article, 'indirect taxes' means the goods and services tax, the wine

equalisation tax, and the luxury car tax.

ARTICLE 12

The Agency shall utilise to the maximum extent practicable Australian resources in the Agreed

Activities. The Agreed Activities shall be carried out by Australian personnel, except to the extent

5

otherwise provided in the Implementing Arrangements between the Agency and the Australian co

operating agency, under the Agency's operational directives.

ARTICLE 13

The Agency shall undertake the Agreed Activities respecting Australia's national securityrequirements. In this respect:

a) The Agency shall allow technical understanding of the equipment associated with the

Facilities, and the broader systems to which they contribute by the relevant Australian

Government agencies;

b) Notwithstanding the Agency's status as an Inter-Governmental Organization, the Agency

shall allow a right of Australian Government access to the Facilities for the purpose of

verifying compliance with Australian national security requirements, upon specific request,

with adequate notice, and with the presence of an Agency representative;

c) Any data obtained by the Australian Government as a result of compliance inspections

under paragraph (b) shall be treated in confidence and used for no other purpose than

verifying compliance with Australian national security requirements;

d) In case the Australian Government establishes deviation from its established national

security requirements, the Agency shall immediately bring the Facilities into compliance.

The Agency shall allow the Australian Government an ability to deactivate the Facilities;

e) The Agency shall notify the Australian Government of any changes to the role, function,

capability or management of the Facilities;

f) The Agency agrees to use the Facilities only for the purpose of its official activities and

programmes and for peaceful purposes. The Agency agrees not to use the Facilities,

information collected through the Facilities, or activities associated with the Facilities for

purposes which are contrary to Australia's sovereignty or national interests.

6

ARTICLE 14

1. The Australian Government shall use its best endeavours to ensure that the frequency bands set

out in the Implementing Arrangements are and remain available to carry out the Agreed

Activities in accordance with the terms of this Agreement and the Implementing Arrangements.

2. The Agency shall take the necessary steps under Australian law to secure access to, and achieve

domestic registration of, the radiofrequency spectrum necessary for the Agency to carry out the

Agreed Activities. The Australian Government shall use its best endeavours to provide the

Agency with access to the requested radiofrequency spectrum, and to achieve domestic

registration of this spectrum.

3. Subject to achieving Australian domestic registration in accordance with paragraph 2, the

Australian Government shall use its best endeavours to assist the Agency in obtaining

registration with the International Telecommunication Union of radiofrequency spectrum usage

necessmy for the Agreed Activities.

4. The operation of radio transmitting and receiving equipment for the Agreed Activities shall

comply with Australian law and the requirements of the relevant Australian authorities,

including in accordance with the Implementing Arrangements.

5. The Australian Government shall use its best endeavours to protect the radio receiving

Facilities used for the Agreed Activities from harmful radiofrequency interference from

radiocommunications stations within Australia that are subject to Australian law. The measures

to be taken by the Australian Government in this respect shall be specified in the Implementing

Arrangements.

ARTICLE 15

In order to facilitate the implementation of this Agreement and the Implementing Arrangements

representatives of the Parties shall meet as frequently as necessary for that purpose, but not less than

once a year. Such meetings shall be held at Canberra unless otherwise agreed.

7

ARTICLE 16

1. Both Parties may agree to any amendments to this Agreement. Any such amendments shall be

recorded in writing and signed by both Parties.

2. Any amendment shall enter into force upon written notification by the Australian Government

to the Agency that all internal procedures for its entry into force have been fulfilled.

ARTICLE 17

1. Any dispute on the interpretation or application of this Agreement shall be referred to the Head

of the Australian co-operating agency and the Director General of the Agency for amicable

resolution in the first instance.

2. Should they be unable to resolve the dispute, then it shall promptly be submitted to an Arbitral

Tribunal constituted by three members. One arbitrator shall be designated by the Australian

Government, one by the Agency and the third one shall be designated by the first two

arbitrators and shall act as a chairperson. Should the first two arbitrators be unable to agree on

the choice of the third arbitrator, the latter shall be designated by the Secretary-General of the

Permanent Court of Arbitration.

3. The Tribunal shall detelmine its own procedure and its seat.

4. The decision of the Arbitral Tribunal shall be determined in accordance with the provisions of

this Agreement by majority vote. The decision of the Tribunal shall be final and binding on the

Parties and shall be without appeal. The decision shall be executed in accordance with the rules

of procedure in force in the country in which it is to be executed. The Parties shall contribute

equally to the expenses of the Tribunal unless the Tribunal should decide otherwise.

8

ARTICLE 18

1. This Agreement shall enter into force upon written notification by the Australian Government

to the Agency that all internal procedures for its entry into force have been fulfilled;

2. The Agreement between the Government ofAustralia and the European Space Agency for a Co

operative Space Vehicle Tracking Program done at Paris on 15 June 1979, and as amended by

an exchange of letters of 21 January 1987, shall terminate upon this Agreement coming into

force.

3. This Agreement shall remain in force until five years after the date on which one Party has

given to the other Party written notice of its intention to terminate the Agreement.

DONE at CAPE TOWN on the fifth day of October 2011 in two originals in the English language.

For the Australian Government For the European Space Agency

9

National Interest Analysis [2011] ATNIA 30

with attachment on consultation

Agreement between the Government of Australia and the European Space Agencyfor a Co-operative Space Vehicle Tracking Program

Done at Cape Town on 5 October 2011

[2011] ATNIF 23

NATIONAL INTEREST ANALYSIS: CATEGORY 1 TREATY

SUMMARY PAGE


Done at Cape Town on 5 October 2011[2011] ATNIF 23

Nature and Timing of proposed treaty action

1. The proposed treaty action is to bring into force the Agreement between theGovernment ofAustralia and the European Space Agency for a Co-operative SpaceVehicle Tracking Program, done at Cape Town on 5 October 2011 ("the proposedAgreement") .

2. Pursuant to its Article 18, the proposed Agreement will enter into force upon writtennotification by the Australian Government to the European Space Agency (ESA) that allinternal procedures for its entry into force have been fulfilled. It is anticipated thatAustralia would be able to provide that advice in February 2012.

Overview and national interest summary

3. The proposed Agreement replaces the Agreement between the Government ofAustraliaand the European Space Agency for a Co-operative Space Vehicle Tracking Programdone at Paris on 15 June 1979 ([1979] ATS 9) and amended in 1987 ([1987] ATS 29),hereinafter referred to as "the 1979 Agreement". The 1979 Agreement will be ternlinatedwhen the proposed Agreement enters into force.

4. The proposed Agreement was devised primarily to overcome limitations of the 1979Agreement, which would have prevented the relocation of the ESA facilities, and toprovide enhanced opportunities for Australian involvement with the ESA activities. Thedrafting of the proposed Agreement also provided an opportunity to update the treatylanguage, the rights and obligations of the Parties and the provisions for disputeresolution and amendment. The Parties also took the opportunity to introduce enhancednational security provisions, for example, allowing the Australian Government theconditional rights to inspect and deactivate the ESA facilities.

Reasons for Australia to take the proposed treaty action

5. The ESA has been operating in Australia since the 1970s. Prior ad hoc arrangementswere formalised in the 1979 Agreement to accommodate the relocation of trackingfacilities from Carnarvon (WA) to the current site in Gnangara, a suburb in the Perth

metropolitan area. The ESA also operates a deep space antenna at New Norcia,approximately l20km north ofPerth.

6. In 2007, the ESA was advised by the Australian Communications and Media Authority(ACMA) that, as a result of increasing radiofrequency interference generated by thesurrounding suburbs, the Gnangara facility would require relocation to New Norcia oranother location by 2015. The relocation of facilities would have required amendment ofthe 1979 Agreement. However, the Parties decided that the conclusion of a newagreement would be more appropriate for the reasons stated above.

7. The primary function ofthe ESA facilities is the tracking and telecommand ofspacecraft used for space exploration, research and satellite missions. This is reflected inArticle 2 of the proposed Agreement, which limits the agreed activities to the trackingand telecommand ofESA or other space vehicles used for civil space research andapplications, and the acquisition of data from such space vehicles.

8. Hosting the ESA facilities has provided employment to Australians as well asproviding Australian scientists access to technology they would not have otherwise had.The proposed Agreement will strengthen Australia's close working relationship with theESA, which in turn will allow Australia to leverage the expertise and leadership of theESA for the future benefit of Australia's space-dependent capabilities, science andresearch communities and emerging space sector.

Obligations

9. Like the 1979 Agreement, the proposed Agreement limits the agreed activities to thetracking and telecommand of ESA or other space vehicles used for civil space researchand applications, and the acquisition of data from such space vehicles (Article 2).However, it does not specify the agreed activities or the location of facilities, leavingthese to be specified in subordinate implementing arrangements (Article 4). Theproposed Agreement thus avoids the limitations of the 1979 Agreement by allowing amore flexible mechanism to accommodate changing operational or other practicalcircumstances. Implementing arrangements made under Article 4 are not intended tocreate legally binding obligations. (The Parties signed an implementing arrangementtogether with the proposed Agreement on 5 October 2011. The implementingarrangement concerns the terminationofthe 2GHz frequency band activities at ESA'sPerth facility by 31 December 2015, and alternative radio frequency spectrum apparatuslicence arrangements for ESA facilities.)

10. Whilst primarily envisaging ESA activities, the proposed Agreement allows forAustralian involvement in the activities. It also allows Australian activities to beconducted independently at the ESA facilities and for Australian infrastructure to bedeveloped or installed, at Australia's expense, at the sites of the ESA facilities (Article 7).

11. Article 6 provides for the sharing of scientific data acquired through the agreedactivities. Article 8 requires the Parties to make freely available details of all activitiesundertaken pursuant to the proposed Agreement.

12. The Australian Government is obliged to facilitate the entry and exit ofpersonnel(Article 10) and goods (Article 11) associated with the agreed activities in accordancewith domestic law. Article 11 provides that goods imported for use in agreed activitiesshall not be subject to Australian duties or taxes.

13. The proposed Agreement includes enhanced national security provisions. Article 13allows the Australian Government a right to access the facilities for inspection andcompliance purposes. Article 13 further allows the Australian Government a right todeactivate facilities if it is determined that activities are contrary to national securityrequirements and the ESA fails to bring the activities into compliance.

14. Regarding radiofrequency spectrum access, the Australian Government is required touse its best endeavours to ensure that the frequency bands set out in the implementingarrangements are and remain available to carry out the agreed activities (Article 14). TheAustralian Government is also required to use its best endeavours to provide the ESAwith access to the requested radiofrequency spectrums, and to achieve domesticregistration of those spectrums. However, the ESA is ultimately responsible for securingdomestic registration of the necessary radiofrequency spectrums. The AustralianGovernment is also obliged to use its best endeavours to protect the ESA facilities fromharmful radiofrequency interference from radiocommunications stations within Australiathat are subject to Australian law.

15. The Parties are required to meet at least once a year to facilitate the implementationof the proposed Agreement and implementing arrangements, with meetings to be held inCanberra unless otherwise agreed (Article 15).

Implementation

16. At the time of tabling, no changes to domestic legislation are required to give effect tothe proposed Agreement.

17. The activities provided for in the proposed Agreement will be undertaken inaccordance with relevant Australian laws. For example:

• The ESA needs to take the necessary steps under Australian law to secure accessto, and achieve domestic registration of, the radiofrequency spectrum necessaryfor the ESA to carry out agreed activities (Article 14.2).

• The operation of radio transmitting and receiving equipment needs to complywith Australian law and requirements of relevant Australian authorities (Article14.4).

• The Australian Government needs to, in accordance with Australian laws,regulations and procedures, facilitate the entry into and temporary stay inAustralia of persons not normally resident in Australia employed or engaged as

staff, consultants or contractors by the ESA in connection with agreed activities(Article 10.1).

• Effects for the personal and household use ofpersons entering Australia for thepurpose of agreed activities need to be pennitted free entry in accordance withAustralian customs law (Article 10.2).

18. Relief from customs duty on goods to be imported into Australia within theframework of the proposed Agreement is given effect by item 69 of Part III of Schedule 4of the Customs TariffAct (Article 11.2). This item allows duty free entry of goodsimported into Australia for use in space projects authorised by the Minister.

Costs

19. The ESA remains responsible for all of the operational and maintenance costs of itsfacilities and for the establishment of new facilities in Australia (Article 5). TheAustralian Govermnent will be responsible for the cost of hosting annual meetings inCanberra, with funds to be allocated from existing resources. The AustralianGovermnent will also be responsible for discretionary costs, which may includecontributions to any agreed activities, conducting independent activities at the ESAfacilities, or for developing infrastructure or installing equipment at the ESA facilities.

Regulation Impact Statement

20. The Office of Best Practice Regulation within the Department of Finance andDeregulation has been consulted and advises that a Regulation Impact Statement is notrequired.

Future Treaty Action

21. Both Parties may agree to amend the proposed Agreement, with amendments to berecorded in writing and signed by the Parties (Article 16). Any amendment will comeinto force upon written notification by the Australian Govermnent to the ESA that allinternal procedures for the amendment's entry into force have been fulfilled.

Withdrawal or denunciation

22. Article 18 provides that the proposed Agreement may be terminated at any time byeither Party by giving notice to the other Party. However, it will remain in force for aperiod of five years after notice of termination has been given. This is to allow for theorderly winding-up of activities whilst alternative arrangements are made for there-location of the facilities.

23. Any termination of the proposed Agreement by Australia would be subject toAustralia's domestic treaty-making process.

Contact details

Space Policy UnitDepartment of Innovation, Industry, Science and Research

ATTACHMENT ON CONSULTATION


Done at Cape Town on 5 October 2011[2011] ATNIF 23

24. The Department of Innovation, Industry, Science and Research sought the views ofthe following Australian Government agencies during the negotiation and drafting stagesof the proposed Agreement:

• The Attorney-General's Department• The Department of Defence• The Department of Foreign Affairs and Trade• The Department of Broadband, Communications and the Digital Economy• The Treasury• The Department ofImmigration and Citizenship• The Australian Communications and Media Authority (ACMA)• Geoscience Australia• The Bureau ofMeteorology• The Commonwealth Science and Industrial Research Organisation (CSIRO)

25. The Department ofInnovation, Industry, Science and Research sought the views ofState and Territory Governments through the official Standing Committee on Treaties(SCOT) contact points:

• ACT Chief Minister's Department• QLD Department of Premier and Cabinet• VIC Department of Premier and Cabinet• NT Department of Chief Minister• SA Department of Premier and Cabinet• TAS Department of Premier and Cabinet• WA Department of Premier and Cabinet• NSW The Cabinet Office

No concerns or comments about the proposed Agreement were received.


REVISED MARPOL ANNEX V

REGULATIONS FOR THE PREVENTION OF POLLUTION BY GARBAGE FROMSHIPS

(Resolution MEPC.201(62))

Adopted at London on 15 July 2011


RESOLUTION MEPC.201(62)

Adopted on 15 July 2011

AMENDMENTS TO THE ANNEX OF THE PROTOCOL OF 1978 RELATING TOTHE INTERNATIONAL CONVENTION FOR THE PREVENTION OF

POLLUTION FROM SHIPS, 1973

(Revised MARPOL Annex V)

THE MARINE ENVIRONMENT PROTECTION COMMITTEE,

RECALLING article 38(a) of the Convention on the International Maritime Organizationconcerning the functions of the Marine Environment Protection Committee (the Committee)conferred upon it by international conventions for the prevention and control of marinepollution,

NOTING article 16 of the International Convention for the Prevention of Pollution fromShips, 1973 (hereinafter referred to as the "1973 Convention") and article VI of the Protocolof 1978 relating to the International Convention for the Prevention of Pollution fromShips, 1973 (hereinafter referred to as the "1978 Protocol") which together specify theamendment procedure of the 1978 Protocol and confer upon the appropriate body of theOrganization the function of considering and adopting amendments to the 1973 Convention,as modified by the 1978 Protocol (MARPOL 73/78),

HAVING CONSIDERED draft amendments to Annex V of MARPOL 73/78,

1. ADOPTS, in accordance with article 16(2)(d) of the 1973 Convention, theamendments to Annex V of MARPOL 73/78, the text of which is set out at annex to thepresent resolution;

2. DETERMINES; in accordance with article 16(2)(f)(iii) of the 1973 Convention, thatthe amendments shall be deemed to have been accepted on 1 July 2012 unless, prior to thatdate, not less than one third of the Parties or Parties the combined merchant fleets of whichconstitute not less than 50 per cent of the gross tonnage of the world's merchant fleet, havecommunicated to the Organization their objection to the amendments;

3. INVITES the Parties to note that, in accordance with article 16(2)(g)(ii) ofthe 1973 Convention, the said amendments shall enter into force on 1 January 2013 upontheir acceptance in accordance with paragraph 2 above;

4. REQUESTS the Secretary-General, in conformity with article 16(2)(e) ofthe 1973 Convention, to transmit to all Parties to MARPOL 73/78 certified copies of thepresent resolution and the text of the amendments contained in the Annex;

5. REQUESTS FURTHER the Secretary-General to transmit to the Members of theOrganization which are not Parties to MARPOL 73/78 copies of the present resolution andits Annex.

REVISED MARPOL ANNEX V

REGULATIONS FOR THE PREVENTION OF POLLUTION BY GARBAGE FROM SHIPS

Regulation 1Definitions

For the purposes of this Annex:

1 Animal carcasses means the bodies of any animals that are carried on board ascargo and that die or are euthanized during the voyage.

2 Cargo residues means the remnants of any cargo which are not covered by otherAnnexes to the present Convention and which remain on the deck or in holdsfollowing loading or unloading, including loading and unloading excess or spillage,whether in wet or dry condition or entrained in wash water but does not includecargo dust remaining on the deck after sweeping or dust on the external surfaces ofthe ship.

3 Cooking oil means any type of edible oil or animal fat used or intended to be usedfor the preparation or cooking of food, but does not include the food itself that isprepared using these oils.

4 Domestic wastes means all types of wastes not covered by other Annexes that aregenerated in the accommodation spaces on board the ship. Domestic wastes doesnot include grey water.

5 En route means that the ship is underway at sea on a course or courses, includingdeviation from the shortest direct route, which as far as practicable for navigationalpurposes, will cause any discharge to be spread over as great an area of the sea asis reasonable and practicable.

6 Fishing gear means any physical device or part thereof or combination of items thatmay be placed on or in the water or on the sea-bed with the intended purpose ofcapturing, or controlling for subsequent capture or harvesting, marine or fresh waterorganisms.

7 Fixed or floating platforms means fixed or floating structures located at sea whichare engaged in the exploration, exploitation or associated offshore processing ofsea-bed mineral resources.

8 Food wastes means any spoiled or unspoiled food substances and includes fruits,vegetables, dairy products, poultry, meat products and food scraps generatedaboard ship.

9 Garbage means all kinds of food wastes, domestic wastes and operational wastes,all plastics, cargo residues, incinerator ashes, cooking oil, fishing gear, and animalcarcasses generated during the normal operation of the ship and liable to bedisposed of continuously or periodically except those substances which are definedor listed in other Annexes to the present Convention. Garbage does not includefresh fish and parts thereof generated as a result of fishing activities undertakenduring the voyage, or as a result of aquaculture activities which involve the transport

of fish including shellfish for placement in the aquaculture facility and the transportof harvested fish including shellfish from such facilities to shore for processing.

10 Incinerator ashes means ash and clinkers resulting from shipboard incineratorsused for the incineration of garbage.

11 Nearest land. The term "from the nearest land" means from the baseline fromwhich the territorial sea of the territory in question is established in accordance withinternational· law, except that, for the purposes of the present Annex, "from thenearest land" off the north-eastern coast of Australia shall mean from a line drawnfrom a point on the coast of Australia in:

latitude 11°00' S, longitude 142°08' Eto a point in latitude 10°35' S, longitude 141°55' E,thence to a point latitude 10°00' S, longitude 142°00' E,thence to a point latitude 09°10' S, longitude 143°52' E,thence to a point latitude 09°00' S, longitude 144°30' E,thence to a point latitude 10°41' S, longitude 145°00' E,thence to a point latitude 13°00' S, longitude 145°00' E,thence to a point latitude 15°00' S, longitude 146°00' E,thence to a point latitude 1r30' S, longitude 14rOO' E,thence to a point latitude 21 °00' S, longitude 152°55' E,thence to a point latitude 24°30' S, longitude 154°00' E,thence to a point on the coast of Australia inlatitude 24°42' S, longitude 153°15' E.

12 Operational wastes means all solid wastes (including slurries) not covered by otherAnnexes that are collected on board during normal maintenance or operations of aship, or used for cargo stowage and handling. Operational wastes also includescleaning agents and additives contained in cargo hold and external wash water.Operational wastes does not include grey water, bilge water, or other similardischarges essential to the operation of a ship, taking into account the guidelinesdeveloped by the Organization.

13 Plastic means a solid material which contains as an essential ingredient one ormore high molecular mass polymers and which is formed (shaped) during eithermanufacture of the polymer or the fabrication into a finished product by heat and/orpressure. Plastics have material properties ranging from hard and brittle to soft andelastic. For the purposes of this annex, "all plastics" means all garbage thatconsists of or includes plastic in any form, including synthetic ropes, syntheticfishing nets, plastic garbage bags and incinerator ashes from plastic products.

14 Special area means a sea area where for recognized technical reasons in relationto its oceanographic and ecological condition and to the particular character of itstraffic the adoption of special mandatory methods for the prevention of sea pollutionby garbage is required.

For the purposes of this Annex the special areas are the Mediterranean Sea area, the BalticSea area, the Black Sea area, the Red Sea area, the Gulfs area, the North Sea area, theAntarctic area and the Wider Caribbean Region, which are defined as follows:

.1 The Mediterranean Sea area means the Mediterranean Sea properincluding the gulfs and seas therein with the boundary between theMediterranean and the Black Sea constituted by the 41 0 N parallel andbounded to the west by the Straits of Gibraltar at the meridian 5°36' W.

.2 The Baltic Sea area means the Baltic Sea proper with the Gulf of Bothniaand the Gulf of Finland and the entrance to the Baltic Sea bounded by theparallel of the Skaw in the Skagerrak at 57° 44.8' N.

.3 The Black Sea area means the Black Sea proper with the boundary betweenthe Mediterranean and the Black Sea constituted by the parallel 41° N.

.4 The Red Sea area means the Red Sea proper including the Gulfs of Suezand Aqaba bounded at the south by the rhumb line between Ras si Ane(12° 28.5' N, 43° 19.6' E) and Husn Murad (12° 40.4' N, 43° 30.2' E);

.5 The Gulfs area means the sea area located north-west of the rhumb linebetween Ras al Hadd (22° 30' N, 59° 48' E) and Ras al Fasteh (25° 04' N,61° 25' E) .

.6 The North Sea area means the North Sea proper including seas thereinwith the boundary between:

.1 the North Sea southwards of latitude 62° N and eastwards oflongitude 4° W;

.2 the Skagerrak, the southern limit of which is determined east ofthe Skaw by latitude 57° 44.8' N; and

.3 the English Channel and its approaches eastwards of longitude5° Wand northwards of latitude 48° 30' N.

.7 The Antarctic area means the sea area south of latitude 60° S.

.8 The Wider Caribbean Region means the Gulf of Mexico and CaribbeanSea proper including the bays and seas therein and that portion of theAtlantic Ocean within the boundary constituted by the 30° N parallel fromFlorida eastward to 77°30' W meridian, thence a rhumb line to theintersectionof 20° N parallel and 59° W meridian, thence a rhumb line to theintersectionof 7°20' N parallel and 50° W meridian, thence a rhumb line drawnsouthwesterly to the eastern boundary of French Guiana.

Regulation 2Application

Unless expressly provided otherwise, the provisions of this Annex shall apply to all ships.

Regulation 3General prohibition on discharge of garbage into the sea

1 Discharge of all garbage into the sea is prohibited, except as provided otherwise inregulations 4, 5, 6 and 7 of this Annex.

2 Except as provided in regulation 7 of this Annex, discharge into the sea of allplastics, including but not limited to synthetic ropes, synthetic fishing nets, plastic garbagebags and incinerator ashes from plastic products is prohibited.

3 Except as provided in regulation 7 of this Annex, the discharge into the sea ofcooking oil is prohibited.

Regulation 4Discharge of garbage outside special areas

1 Discharge of the following garbage into the sea outside special areas shall only bepermitted while the ship is en route and as far as practicable from the nearest land, but inany case not less than:

.1 3 nautical miles from the nearest land for food wastes which have beenpassed through a comminuter or grinder. Such comminuted or groundfood wastes shall be capable of passing through a screen with openings nogreater than 25 mm.

.2 12 nautical miles from the nearest land for food wastes that have not beentreated in accordance with subparagraph .1 above.

.3 12 nautical miles from the nearest land for cargo residues that cannot berecovered using commonly available methods for unloading. These cargoresidues shall not contain any substances classified as harmful to themarine environment, taking into account guidelines developed by theOrganization .

.4 For animal carcasses, discharge shall occur as far from the nearest land aspossible, taking into account the guidelines developed by the Organization.

2 Cleaning agents or additives contained in cargo hold, deck and external surfaceswash water may be discharged into the sea, but these substances must not be harmful tothe marine environment, taking into account guidelines developed by the Organization.

3 When garbage is mixed with or contaminated by other substances prohibited fromdischarge or having different discharge requirements, the more stringent requirements shallapply.

Regulation 5Special requirements for discharge ofgarbage from fixed or floating platforms

1 Subject to the provisions of paragraph 20f this regulation, the discharge into thesea of any garbage is prohibited from fixed or floating platforms and from all other shipswhen alongside or within 500 m of such platforms.

2 Food wastes may be discharged into the sea from fixed or floating platforms locatedmore than 12 nautical miles from the nearest land and from all other ships when alongside orwithin 500 m of such platforms, but only when the wastes have been passed through acomminuter or grinder. Such comminuted or ground food wastes shall be capable ofpassing through a screen with openings no greater than 25 mm.

Regulation 6Discharge ofgarbage within special areas

1 Discharge of the following garbage into the sea within special areas shall only bepermitted while the ship is en route and as follows:

.1 Discharge into the sea of food wastes as far as practicable from thenearest land, but not less than 12 nautical miles from the nearest land or thenearest ice shelf. Food wastes shall be comminuted or ground and shall becapable of passing through a screen with openings no greater than 25 mm.Food wastes shall not be contaminated by any other garbage type.Discharge of introduced avian products, including poultry and poultry parts, isnot permitted in the Antarctic area unless it has been treated to be madesterile.

.2 Discharge of cargo residues that cannot be recovered using commonlyavailable methods for unloading, where all the following conditions aresatisfied:

.1 Cargo residues, cleaning agents or additives, contained in holdwashing water do not include any substances classified as harmfulto the marine environment, taking into account guidelinesdeveloped by the Organization;

.2 Both the port of departure and the next port of destination arewithin the special area and the ship will not transit outside thespecial area between those ports;

.3 No adequate reception facilities are available at those ports takinginto account guidelines developed by the Organization; and

.4 Where the conditions of subparagraphs 2.1, 2.2 and 2.3 of thisparagraph have been fulfilled, discharge of cargo hold washingwater containing residues shall be made as far as practicablefrom the nearest land or the nearest ice shelf and not lessthan 12 nautical miles from the nearest land or the nearest iceshelf.

2 Cleaning agents or additives contained in deck and external surfaces wash watermay be discharged into the sea, but only if these substances are not harmful to the marineenvironment, taking into account guidelines developed by the Organization.

3 The following rules (in addition to the rules in paragraph 1 of this regulation) applywith respect to the Antarctic area:

.1 Each Party at whose ports ships depart en route to or arrive from theAntarctic area undertakes to ensure that as soon as practicable adequatefacilities are provided for the reception of all garbage from all ships, withoutcausing undue delay, and according to the needs of the ships using them.

.2 Each Party shall ensure that all ships entitled to fly its flag, before enteringthe Antarctic area, have sufficient capacity on board for the retention of allgarbage, while operating in the area and have concluded arrangements todischarge such garbage at a reception facility after leaving the area.

4 When garbage is mixed with or contaminated by other substances prohibited fromdischarge or having different discharge requirements, the more stringent requirements shallapply.

Regulation 7Exceptions

1 Regulations 3, 4, 5 and 6 of this Annex shall not apply to:

.1 The discharge of garbage from a ship necessary for the purpose ofsecuring the safety of a ship and those on board or saving life at sea; or

.2 The accidental loss of garbage resulting from damage to a ship or itsequipment, provided that all reasonable precautions have been takenbefore and after the occurrence of the damage, to prevent or minimize theaccidental loss; or

.3 The accidental loss of fishing gear from a ship provided that all reasonableprecautions have been taken to prevent such loss; or

.4 The discharge of fishing gear from a ship for the protection of the marineenvironment or for the safety of that ship or its crew.

2 Exception of en route:

.1 The en route requirements of regulations 4 and 6 shall not apply to thedischarge of food wastes where it is clear the retention on board of thesefood wastes presents an imminent health risk to the people on board.

Regulation 8Reception facilities

1 Each Party undertakes to ensure the provision of adequate facilities at ports andterminals for the reception of garbage without causing undue delay to ships, and accordingto the needs of the ships using them.

2 Reception facilities within special areas

.1 Each Party, the coastline of which borders a special area, undertakes toensure that as soon as possible, in all ports and terminals within thespecial area, adequate reception facilities are provided, taking into accountthe needs of ships operating in these areas.

.2 Each Party concerned shall notify the Organization of the measures takenpursuant to subparagraph 3.1 of this regulation. Upon receipt of sufficientnotifications the Organization shall establish a date from which therequirements of regulation 6 of this Annex in respect of the area inquestion are to take effect. The Organization shall notify all Parties of thedate so established no less than twelve months in advance of that date.Until the date so established, ships that are navigating in a special areashall comply with the requirements of regulation 4 of this Annex as regardsdischarges outside special areas.

3 Each Party shall notify the Organization for transmission to the Contracting Partiesconcerned of all cases where the facilities provided under this regulation are alleged to beinadequate.

Regulation 9Port State control on operational requirements 1

1 A ship when in a port or an offshore terminal of another Party is subject toinspection by officers duly authorized by such Party concerning operational requirementsunder this Annex, where there are clear grounds for believing that the master or crew are notfamiliar with essential shipboard procedures relating to the prevention of pollution bygarbage.

2 In the circumstances given in paragraph 1 of this regulation, the Party shall takesuch steps as will ensure that the ship shall not sail until the situation has been brought toorder in accordance with the requirements of this Annex.

3 Procedures relating to the port State control prescribed in article 5 of the presentConvention shall apply to this regulation.

4 Nothing in this regulation shall be construed to limit the rights and obligations of aParty carrying out control over operational requirements specifically provided for in thepresent Convention.

Regulation 10Placards, garbage management plans2 and garbage record-keeping

1 .1 Every ship of 12 m or more in length overall and fixed or floating platformsshall display placards which notify the crew and passengers of thedischarge requirements of regulations 3, 4, 5 and 6 of this Annex, asapplicable.

.2 The placards shall be written in the working language of the ship's crewand, for ships engaged in voyages to ports or offshore terminals under thejurisdiction of other Parties to the Convention, shall also be in English,French or Spanish.

2 Every ship of 100 gross tonnage and above, and every ship which is certified tocarry 15 or more persons, and fixed or floating platforms shall carry a garbage managementplan which the crew shall follow. This plan shall provide written procedures for minimizing,collecting, storing, processing and disposing of garbage, including the use of the equipmenton board. It shall also designate the person or persons in charge of carrying out the plan.Such a plan shall be based on the guidelines developed by the Organization2 and written inthe working language of the crew.

3 Every ship of 400 gross tonnage and above and every ship which is certified tocarry 15 or more persons engaged in voyages to ports or offshore terminals under thejurisdiction of another Party to the Convention and every fixed or floating platform shall beprovided with a Garbage Record Book. The Garbage Record Book, whether as a part of theship's official log-book or otherwise, shall be in the form specified in the appendix to thisAnnex:

2

Refer to the Procedures for port State control adopted by the Organization by resolution A.787(19) andamended by A.882(21); see IMO sales pUblication IA650E.Refer to the Guidelines for the development of garbage management plans adopted by the MarineEnvironment Protection Committee of the Organization by resolution MEPC.71 (38); see MEPC/Circ.317and IMO sales publication IA656E.

.1 Each discharge into the sea or to a reception facility, or a completedincineration, shall be promptly recorded in the Garbage Record Book andsigned for on the date of the discharge or incineration by the officer incharge. Each completed page of the Garbage Record Book shall besigned by the master of the ship. The entries in the Garbage Record Bookshall be at least in English, French or Spanish. Where the entries are alsomade in an official language of the State whose flag the ship is entitled tofly, the entries in that language shall prevail in case of a dispute ordiscrepancy;

.2 The entry for each discharge or incineration shall include date and time,position of the ship, category of the garbage and the estimated amountdischarged or incinerated;

.3 The Garbage Record Book shall be kept on board the ship or the fixed orfloating platform, and in such a place as to be readily available forinspection at all reasonable times. This document shall be preserved for aperiod of at least two years from the date of the last entry made in it;

.4 In the event of any discharge or accidental loss referred to in regulation 7of this Annex an entry shall be made in the Garbage Record Book, or inthe case of any ship of less than 400 gross tonnage, an entry shall bemade in the ship's official log-book, of the location, circumstances of, andthe reasons for the discharge or loss, details of the items discharged orlost, and the reasonable precautions taken to prevent or minimize suchdischarge or accidental loss.

4 The Administration may waive the requirements for Garbage Record Books for:

.1 Any ship engaged on voyages of one (1) hour or less in duration which iscertified to carry 15 or more persons; or

.2 Fixed or floating platforms.

5 The competent authority of the Government of a Party to the Convention mayinspect the Garbage Record Books or ship's official log-book on board any ship to which thisregulation applies while the ship is in its'ports or offshore terminals and may make a copy ofany entry in those books, and may require the master of the ship to certify that the copy is atrue copy of such an entry. Any copy so made, which has been certified by the master of theship as a true copy of an entry in the ship's Garbage Record Book or ship's official log-book,shall be admissible in any judicial proceedings as evidence of the facts stated in the entry.The inspection of a Garbage Record Book or ship's official log-book and the taking of acertified copy by the competent authority under this paragraph shall be performed asexpeditiously as possible without causing the ship to be unduly delayed.

6 The accidental loss or discharge of fishing gear as provided for in regulations 7.1.3and 7.1.4 which poses a significant threat to the marine environment or navigation shall bereported to the State whose flag the ship is entitled to fly, and, where the loss or dischargeoccurs within waters subject to the jurisdiction of a coastal State, also to that coastal State.

APPENDIX

FORM OF GARBAGE RECORD BOOK

Name of ship: _

Distinctive number or letters: -'--__

IMO No.: _

Period: From: To:~ _

1 Introduction

In accordance with regulation 10 of Annex V of the International Convention for thePrevention of Pollution from Ships, 1973, as modified by the Protocol of 1978 (MARPOL),a record is to be kept of each discharge operation or completed incineration. This includesdischarges into the sea, to reception facilities, or to other ships, as well as the accidentalloss of garbage.

2 Garbage and garbage management

Garbage means all kinds of food wastes, domestic wastes and operational wastes, allplastics, cargo residues, incinerator ashes, cooking oil, fishing gear, and animal carcassesgenerated during the normal operation of the ship and liable to be disposed of continuouslyor periodically except those substances which are defined or listed in other Annexes to thepresent Convention. Garbage does not include fresh fish and parts thereof generated asaresult of fishing activities undertaken during the voyage, or as a result of aquacultureactivities which involve the transport of fish including shellfish for placement in theaquaculture facility and the transport of harvested fish including shellfish from such facilitiesto shore for processing.

The Guidelines for the Implementation ofAnnex V of MARPOL3 should also be referred tofor relevant information.

3 Description of the garbage

Garbage is to be grouped into categories for the purposes of the Garbage Record Book (orship's official log-book) as follows:

A Plastics

B Food wastes

C Domestic Wastes

D Cooking Oil

E Incinerator ashes

F Operational wastes

3 Refer to the Guidelines for the Implementation of Annex V of MARPOL 73/78, as amended by resolutions.

G Cargo residues

H Animal Carcass(es)

Fishing Gear4

4 Entries in the Garbage Record Book

4.1 Entries in the Garbage Record Book shall be made on each of the followingoccasions:

4.1.1 When garbage is discharged to a reception facility5 ashore or to otherships:

.1 Date and time of discharge

.2 Port or facility, or name of ship

.3 Categories of garbage discharged

.4 Estimated amount discharged for each category in cubic metres

.5 Signature of officer in charge of the operation.

4.1.2 When garbage is incinerated:

.1 Date and time of start and stop of incineration

.2 Position of the ship (latitude and longitude) at the start and stop ofincineration

.3 Categories of garbage incinerated

.4 Estimated amount incinerated in cubic metres

.5 Signature of the officer in charge of the operation.

4.1.3 When garbage is discharged into the sea in accordance with regulations 4, 5or 6 of Annex V of MARPOL:

.1 Date and time of discharge

.2 Position of the ship (latitude and longitude). Note: for cargoresidue discharges, include discharge start and stop positions.

.3 Category of garbage discharged

.4 Estimated amount discharged for each category in cubic metres

.5 Signature of the officer in charge of the operation.

4.1.4 Accidental or other exceptional discharges or loss of garbage into the sea,including in accordance with regulation 7 of Annex V of MARPOL:

.1 Date and time of occurrence

.2 Port or position of the ship at time of occurrence (latitude,longitude and water depth if known)

.3 Categories of garbage discharged or lost

.4 Estimated amount for each category in cubic metres

.5 The reason for the discharge or loss and general remarks.

4

5Refer to Guidelines to be developed by the Organization.Ship's masters should obtain from the operator of the reception facilities, which includes barges andtrucks, a receipt or certificate specifying the estimated amount of garbage transferred. The receipts orcertificates must be kept together with the Garbage Record Book.

4.2 Amount of garbage

The amount of garbage on board should be estimated in cubic metres, if possible separatelyaccording to category. The Garbage Record Book contains many references to estimatedamount of garbage. It is recognized that the accuracy ofestimating amounts of garbage isleft to interpretation. Volume estimates will differ before and after processing. Someprocessing procedures may not allow for a usable estimate of volume, e.g., the continuousprocessing of food waste. Such factors should be taken into consideration when making andinterpreting entries made in a record.

RECORD OF GARBAGE DISCHARGES

Ship's name: _

Distinctive No., or letters: _

IMO No.: _

Garbage categories:

A. PlasticsB. Food wastesC. Domestic wastes (e.g., paper products, rags, glass, metal, bottles, crockery, etc.)D. Cooking oilE. Incinerator AshesF. Operational wastesG. Cargo residuesH. Animal Carcass(es)I. Fishing gear

NEW TABLE LAYOUT AS BELOW:Date/ Position of the Category Estimated To To Incineration Certification/Time Ship/Remarks Amount Sea Reception Signature

(e.g., accidental Discharged Facilityloss) or

Incinerated

Master's signature: Date: _

***

National Interest Analysis [2011] ATNIA 33with attachment on consultation

Revised MARPOL Annex V:Regulations for the Prevention of Pollution by Garbage from Ships

(Resolution MEPC.201(62))Adopted at London on 15 July 2011

[2011] ATNIF 24


SUMMARY PAGE


(Resolution MEPC.201(62»Adopted at London on 15 July 2011

[2011] ATNIF 24

Nature and timing of proposed treaty action

1. The International Conventionfor the Prevention ofPollution from Ships (MARPOL) isone of the key international instruments addressing the problem of marine pollution fromships. MARPOL contains six technical annexes dealing with, respectively: oil; noxiousliquid substances in bulk; harmful substances in packaged form; sewage; garbage; and airpollution. It is administered by the International Maritime Organization (IMO).

2. The proposed treaty action is tacit acceptance of a revised version of Annex V ofMARPOL ([1990] ATS 34), adopted by the IMO Marine Environment ProtectionCommittee (MEPC) under cover of resolution MEPC.20l(62) on 15 July 2011 ("therevised Annex V"). Annex V contains regulations for the prevention ofpollution bygarbage from ships. The revised Annex V was adopted in response to resolutionA/RES/60/30 of the UN General Assembly (March 2006), which invited the IMO toreview MARPOL Annex V, to assess its effectiveness in addressing sea-based sources ofmarine debris.

3. In accordance with the amendment procedure set out in MARPOL, the revised Annex Vwill be deemed to have been accepted on 1 July 2012, unless prior to that date, not lessthan one-third of the Parties or Parties the combined fleets of which constitute not lessthan 50 per cent of the gross tonnage of the world's merchant fleet, have communicatedto IMO their objection to the revised Annex V ("tacit acceptance"). Upon acceptance, therevised Annex V will enter into force on 1 January 2013.


4. Australia is a Party to MARPOL and its six Annexes. The revised Annex V will upgradecurrent international regulations for the prevention ofpollution by garbage from shipsfollowing a review undertaken by the IMO to place additional restrictions on the disposalof garbage from ships at sea.

5. The revised Annex V includes a new requirement specifying that discharge of all garbageinto the sea is prohibited, except as expressly provided otherwise. The only dischargespermitted in certain circumstances include food wastes, cargo residues, water used forwashing deck and external surfaces containing cleaning agents or additives which are notharmful to the marine environment, and animal carcasses. The existing requirements forplacards and garbage management plans are extended to fixed and floating platformsengaged in exploration and exploitation of the sea-bed.


6. Marine debris in the oceans is one of the major threats to the marine environment,estimated to kill more than one million seabirds and 100,000 marine mammals and turtleseach year through ingestion and entanglement. Certain types of garbage also have thepotential to cause damage to vessels and harm to human life. While land-based sourcesremain the major contributor to marine debris, shipping is nevertheless a significantcontributor.

7. "Garbage" is broadly defined in the revised Annex V, and includes all kinds of foodwastes, domestic wastes and operational wastes, all plastics, cargo residues, incineratorashes, cooking oil, fishing gear and animal carcasses.

8. The preamble ofMARPOL includes a reference to the desire of the parties to achieve thecomplete elimination of intentional pollution of the marine environment. The review andresulting amendments is a major step towards achieving that goal.

9. Australian laws restricting the discharge of certain types of garbage, including theprohibition of plastics, have been in place since 1990. Australia's acceptance of therevised Annex V is consistent not only with Australia's long-standing support forprotection of the marine environment, but also with Australia's active backing of, andparticipation in, the IMO.

10. The revised Annex V is in accordance with Australia's general obligations as a Party tothe United Nations Convention on the Law ofthe Sea 1982 (UNCLOS, [1994] ATS 31).This provides for nations to adopt laws and regulations that at least have the same effectas that of generally accepted international rules and standards for the prevention,reduction and control ofpollution of the marine environment from vessels (Article 211).

Obligations

11. Australia is obliged to give effect in domestic law to the provisions ofMARPOL and itsAnnexes. These make provision to prevent the pollution of the marine environment bythe discharge ofpolluting substances. A summary of those obligations is set out below.

12. The revised Annex V prohibits the discharge of all garbage into the sea except asprovided otherwise. Regulation 7 sets out the types of situations that are exempt from theapplication of Regulations 3, 4, 5 and 6 of the revised Annex V (which prohibit or limitthe discharge of garbage). These exemptions comprise:

the discharge of garbage from a ship necessary for the purpose of securing the safetyof a ship and those on board or saving life at sea;

the accidental loss ofgarbage resulting from damage to a ship or its equipment;

the accidental loss of fishing gear from a ship;

the discharge of fishing gear from a ship for the protection of the marine environmentor for the safety of that ship or its crew.

13. The discharges permitted in certain limited circumstances include:

food wastes (3 nautical miles from the nearest land if treated, 12 nautical miles ifnottreated) (Regulation 4.1, subparagraphs 1 and 2);

cargo residues that are not harmful to the marine environment (12 nautical miles fromthe nearest land) (Regulation 4.1.3);

water used for washing deck and external surfaces containing cleaning agents oradditives which are not harmful to the marine environment (Regulation 4.2);

animal carcasses providing the discharge is as far as possible from the nearest land,taking into account the guidelines developed by the IMO (Regulation 4.1.4).

14. Every ship of 12 metres or more in length, and fixed or floating platforms, would berequired to display placards notifying passengers and crew of the discharge requirementsset out in the revised Annex V (Regulation 10.1). Ships of 100 gross tonnage and aboveor which are certified to carry 15 or more persons, as well as fixed and floating platforms,will be required to carry a garbage management plan setting out written procedures forthe collection, storage, processing and disposal of garbage (Regulation 10.2). Ships of400 gross tonnage and above would be required to maintain a Garbage Record Book(Regulation 10.3).

Port state obligations

15. Under Regulation 8, Australia would need to ensure adequate facilities are provided at itsports and terminals for the reception of garbage (without causing undue delay to ships,and according to the needs of the ships using them - Regulation 8.1) and notify the IMOof all cases where the facilities were alleged to be inadequate (Regulation 8.3). Similarobligations exist under Regulation 6.3 in respect ofports where ships depart en route to,or arrive from, the Antarctic area and Regulation 8.2 in relation to ports and terminalswithin special areas.

16. Where there are clear grounds for believing that the master or crew of a foreign flaggedship is not familiar with essential shipboard procedures relating to the prevention ofpollution by garbage, and the ship is inspected when in an Australian port or offshoreterminal, Australia would be required to take such steps to ensure that the ship does notsail until the situation has been rectified (Regulation 9).

17. Australia would also need to ensure that any inspection of a ship's Garbage Record Bookor ship's official log-book, and the taking ofa certified copy, while a ship is in its ports oroffshore terminals, shall be performed as expeditiously as possible without causing theship to be unduly delayed (Regulation 10.5).

18. The accidental loss or discharge of fishing gear which poses a significant threat to themarine environment or navigation is required to be reported to the ship's flag State, and,where the loss or discharge occurs within waters subject to the jurisdiction of a coastalState, also to that coastal State (Regulation 10.6).

Implementation

19. Amendments will be needed to the Protection ofthe Sea (Prevention ofPollution fromShips) Act 1983 (Cth) and Marine Orders - Part 95 (Marine Pollution Prevention Garbage) to implement the proposed treaty action.

Costs

20. The revised Annex V is expected to have a minimal cost impact on Australia. ManyAustralian shipowners and operators already follow a policy of not discharging waste atsea, other than food waste in some circumstances, which is fully consistent with therevised Annex V.

21. While the expansion of the requirements for placards and garbage management plans tofixed and floating platforms will have an administrative impact, this impact is expected tobe negligible.

22. Australia already has mandatory requirements for livestock management and shipment,including requirements for the disposal of animal carcasses. The disposal requirementswe apply are currently more stringent than the revised Annex V. None of the vesselscurrently engaged in livestock export from Australia are Australian flagged, although theyall comply with the Australian requirements.

23. It is expected the revised Annex V will result in an increased demand for waste receptionfacilities in ports. As waste removal services for ships in Australian ports are almostexclusively provided by private waste removal contractors, it is anticipated that anyincrease in demand will be met through commercial arrangements.


24. The Office of Best Practice Regulation has been consulted and confirms that a RegulationImpact Statement is not required.

Future treaty action

25. Article 16.ofMARPOL and Article VI of the Protocol of1978 relating to theInternational Conventionfor the Prevention ofPollution from Ships ([1988] ATS 29)together specifY the amendment procedure for future amendments to MARPOL and itsAnnexes. This includes amendment by a 'tacit acceptance' procedure, wherebyamendments automatically enter into force on a specified date unless an agreed number ofParties object by an agreed date.

26. Amendments are usually adopted by either MEPC or by a Conference of Parties toMARPOL (by a two-thirds majority of the Parties to MARPOL present and voting).

27. Future treaty action would be subject to Australia's domestic treaty process.


28. Article 18 ofMARPOL sets out the procedures and conditions for denunciation.

29. Any Optional Annex (which includes Annex V) may be denounced by any Party toMARPOL (or its Protocols) at any time after the expiry of five years from the date onwhich such an Annex enters into force for that Party.

30. Denunciation shall be effected by notification in writing to the Secretary-General of theIMO, who shall inform all the other Parties of any such notification received and of thedate of its receipt as well as the date on which such denunciation takes effect.

31. The denunciation would take effect 12 months after receipt of the notification ofdenunciation by the Secretary-General or after the expiry of any other longer periodwhich may be indicated in the notification.

32. Any decision to denounce MARPOL or any of its Annexes would be subject toAustralia's domestic treaty process.

Contact detailsMaritime Policy SectionSurface Transport Policy DivisionDepartment of Infrastructure mid Transport



(Resolution MEPC.201(62))Adopted at London on 15 July 2011

[2011] ATNIF 24

CONSULTATION

33. In addition to direct consultation on specific issues, each meeting of the AustralianMaritime Group (AMG) includes a standing agenda item on marine environment issues.In this forum, the States and the Northern Territory are provided with a summary ofamendments to conventions and key issues relating to protection of the marineenvironment scheduled for formal adoption and/or discussion at IMO meetings. Via theAustralian Maritime Safety Authority (AMSA) web site, AMSA provides AMG memberswith access to IMO Committee and Sub-Committee documentation, including agenda andsubmitted papers. Members are invited to provide comment on these papers to therelevant Commonwealth contact as appropriate. In relation to the revised Annex V,comments were received from some States expressing concern regarding the additionaladministrative burden that would result if the tonnage requirement for vessels to carry aGarbage Record Book was reduced to a figure less than 400 gross tons. These concernswere reflected in briefing for the relevant Committee sessions and ultimately no suchamendments were included in the final text.

34. A standing agenda item on environment issues is also provided at meetings of the AMSA

Advisory Committee. AMSA provides a detailed paper to update the Committee on

current issues associated with AMSA's environmental activities, including those that

might impact on the maritime industry and the role of AMSA within the next few years.

Membership of the AMSA Advisory Committee includes senior representatives from

many of AMSA's key stakeholders, including Shipping Australia, the National Offshore

Petroleum Safety Authority, Ports Australia, Australian Shipowners Association,

Australian Antarctic Division and the Australian Maritime College.

35. Additional consultation on issues being considered as part of the review of Annex V was

undertaken on an ad hoc basis in forums such as:

Ports Australia Environment and Sustainability Working Group; andBulk Cargoes Advisory Committee.

36. In addition to the above, consultations were undertaken with LiveShip and theDepartment of Sustainability, Environment, Water, Population and Communities.LiveShip provided considerable input on matters relating to the disposal of animalcarcasses, and their views were reflected in briefing for the relevant sessions of MEPC.The final text adopted by MEPC reflects the industry position.

DEPARTMENT OF FOREIGN AFFAIRS AND TRADE

CANBERRA

Agreement between the Government of Australia and the Government of the Principality of

Liechtenstein on the exchange of information on taxes

Done at Vaduz on 21 June 2011

Not yet in force

[2011] ATNIF 10

PREAMBLE

The Government of Australia and the Government of the Principality of Liechtenstein, hereinafter

referred to as "the Contracting Parties",

WHEREAS the Contracting Parties recognise that the well-developed economic ties between the

Contracting Parties call for further cooperation;

WHEREAS the Contracting Parties wish to develop their relationship further by cooperating to

their mutual benefits in the field of taxation;

WHEREAS the Contracting Parties wish to strengthen the ability ofboth Contracting Parties to

enforce their respective tax laws; and

WHEREAS the Contracting Parties wish to establish the terms and conditions governing the

exchange of infonnation on tax matters -

Have agreed as follows:

ARTICLE 1

OBJECT AND SCOPE OF THIS AGREEMENT

The competent authorities of the Contracting Parties shall provide assistance through exchange of

information that is foreseeably relevant to the administration and enforcement of the domestic laws

of the Contracting Parties concerning taxes covered by this Agreement, including information that

is foreseeably relevant to the determination, assessment, collection and the recovery and

enforcement of tax claims with respect to persons subject to such taxes, or the investigation or

prosecution of tax matters in relation to such persons. Information shall be exchanged in

accordance with the provisions of this Agreement and shall be treated as confidential in the manner

provided in Article 8. The rights and safeguards secured to persons by the laws or administrative

practice of the Requested Party remain applicable. The Requested Party shall use its best

endeavours to ensure that any such rights and safeguards are not applied in a manner that unduly

prevents or delays effective exchange of information.

ARTICLE 2

JURISDICTION

A Requested Party is not obligated to provide information which is neither held by its authorities

nor in the possession or control of persons who are within its ten-itorial jurisdiction.

ARTICLE 3

TAXES COVERED

1 The existing taxes which are the subject of this Agreement are:

(a) in Australia, taxes of every kind and description imposed under federal laws

administered by the Commissioner of Taxation; and

(b) in the Principality of Liechtenstein:

the personal income tax (Erwerbssteuer);

the corporate income tax (Ertragssteuer);

the corporation taxes (Gesellschaftssteuern);

the real estate capital gains tax (Grundstuecksgewinnsteuer);

the wealth tax (Vermoegenssteuer);

the coupon tax (Couponsteuer); and

the estate, inheritance and gift taxes (Nachlass- Erbanfalls- und Schenkungssteuern).

2 This Agreement shall also apply to any identical or substantially similar taxes that are

imposed after the date of signature of this Agreement in addition to, or in place of, the existing

taxes. The Agreement shall also apply to such other taxes as may be agreed in an exchange of

letters between the Contracting Parties. The competent authorities of the Contracting Parties shall

notify each other of any substantial changes to the taxation and related information gathering

measures covered by this Agreement.

3 This Agreement shall not apply to taxes imposed by states, municipalities, or other political

subdivisions, or possessions of a Contracting Party.

ARTICLE 4

DEFINITIONS

1 For the purposes of this Agreement, unless otherwise defined:

(a) the term "Applicant Party" means the Contracting Party requesting information;

(b) the term "Australia", when used in a geographical sense, excludes all external territories

other than:

(i) the Territory ofNorfolk Island;

(ii) the Territory of Christmas Island;

(iii) the Territory of Cocos (Keeling) Islands;

(iv) the Territory of Ashmore and Cartier Islands;

(v) the Territory of Heard Island and McDonald Islands; and

(vi) the Coral Sea Islands Territory,

and includes any area adjacent to the territorial limits of Australia (including the

Territories specified in this subparagraph) in respect of which there is for the time being

in force, consistently with international law, a law of Australia dealing with the

exploration for or exploitation of any of the natural resources of the exclusive economic

zone or the seabed and subsoil of the continental shelf;

(c) the term "Principality of Liechtenstein" means, when used in a geographical sense, the

area of the sovereign territory of the Principality of Liechtenstein;

(d) the term "collective investment fund or scheme" means any pooled investment vehicle,

irrespective oflegal form. The term "public collective investment fund or scheme"

means any collective investment fund or scheme provided the units, shares or other

interests in the fund or scheme can be readily purchased, sold or redeemed by the

public. Units, shares or other interests in the fund or scheme can be readily purchased,

sold or redeemed "by the public" if the purchase, sale or redemption is not implicitly or

explicitly restricted to a limited group of investors;

(e) the term"company" means any body corporate and any entity or special asset

endowments that are treated as a body corporate for tax purposes;

(f) the term "competent authority" means in the case of Australia, the Commissioner of

Taxation or an authorised representative of the Commissioner and, in the case of the

Principality of Liechtenstein, the Government of the Principality of Liechtenstein or its

authorised representative;

(g) the term "Contracting Party" means Australian Government or Liechtenstein

Government as the context requires;

(h) the term "criminal laws" means all criminal laws designated as such under domestic law

irrespective of whether contained in the tax laws, the criminal code or other statutes;

(i) the term "criminal tax matters" means tax matters involving intentional conduct which

is liable to prosecution under the criminal laws of the Applicant Party;

CD the term "information" means any fact, statement or record in any form whatever;

(k) the term "information gathering measures" means laws and administrative or judicial

procedures that enable a Contracting Party to obtain and provide the requested

information;

(1) the term "national" means:

i) in the case of Australia,

(1) any individual who is a citizen of Australia; and

(2) any company, partnership or association deriving its status as such from the

laws of Australia.

ii) in relation to Liechtenstein any individual possessing "Landesbuergerrechte"

according to the "Buergerrechtsgesetz" (LGBl. 1960, No. 23) and any person other than

an individual deriving its status as such from the laws in force in Liechtenstein;

(m) the term "person" includes an individual, a company, a dormant inheritance and any

other body of persons;

(n) the term "principal class of shares" means the class or classes of shares representing a

majority of the voting power and value of the company;

(0) the term "publicly traded company" means any company whose principal class of shares

is listed on a recognised stock exchange provided its listed shares can be readily

purchased or sold by the public. Shares can be purchased or sold "by the public" if the

purchase or sale of shares is not implicitly or explicitly restricted to a limited group of

investors;

(P) the term "recognised stock exchange" means any stock exchange agreed upon by the

competent authorities of the Contracting Parties;

(q) the term "Requested Party" means the Contracting Party requested to provide

information; and

(r) the term "tax" means any tax to which this Agreement applies.

2 As regards the application of this Agreement at any time by a Contracting Party, any tenn not

defmed in this Agreement, unless the context otherwise requires or the competent authorities agree

to a common meaning pursuant to theprovisions of Article 10 of this Agreement, shall have the

meaning that it has at that time under the law of that Party, any meaning under the applicable tax

laws of that Party prevailing over a meaning given to the term under other laws of that Party.

ARTICLE 5

EXCHANGE OF INFORMATION UPON REQUEST

1 The competent authority of the Requested Party shall provide upon request from the

Applicant Party information for the purposes referred to in Article 1. Such information shall be

exchanged without regard to whether the Requested Party needs such information for its own tax

purposes or whether the conduct being investigated would constitute a crime under the laws of the

Requested Party if such conduct occurred in the Requested Party.

2 If the information in the possession of the competent authority of the Requested Party is not

sufficient to enable it to comply with the request for information, that Party shall use all relevant

information gathering measures to provide the Applicant Party with the information requested,

notwithstanding that the Requested Party may not need such information for its own tax purposes.

3 If specifically requested by the competent authority of an Applicant Party, the competent

authority of the Requested Party shall provide information under this Article, to the extent

allowable under its domestic laws, in the form of depositions of witnesses and authenticated copies

of original records.

4 Each Contracting Party shall ensure that its competent authority, in accordance with the terms

of this Agreement have for the purposes specified in Article I of this Agreement, has the authority

to obtain and provide upon request:

(a) information held by banks, other financial institutions, and any person, including

nominees and trustees, acting in an agency or fiduciary capacity;

(b) information regarding the legal and beneficial ownership of companies, partnerships,

trusts, foundations and other persons, including, within the constraints of Article 2,

ownership information on all such persons in an ownership chain; in the case of trusts,

information on settlors, trustees, beneficiaries and protectors; and in the case of

foundations, information on founders, members of the foundation council and

beneficiaries. Further, this Agreement does not create an obligation on the Contracting

Parties to obtain or provide ownership information with respect to publicly traded

companies or public collective investment funds or schemes unless such information

can be obtained without giving rise to disproportionate difficulties.

5 Any request for information shall be formulated with the greatest detail possible and shall in

all cases specify in writing:

(a) the identity of the person under examination or investigation;

(b) the taxable period for which the information is sought;

(c) a statement of the information sought including its nature and the form in which the

Applicant Party wishes to receive the information from the Requested Party;

(d) the matter under the Applicant Party's tax law with respect to which the information is

sought;

(e) the grounds for believing that the information requested is foreseeably relevant to the

administration and enforcement of the domestic tax laws of the Applicant Party with

regard to the person specified in subparagraph (a);

(f) the grounds for believing that the information requested is held in the Requested Party

or is in the possession or control of a person within the jurisdiction of the Requested

Party;

(g) to the extent known, the name and address of any person believed to be in possession of

the requested information;

(h) a statement that the request is in conformity with the law and administrative practices of

the Applicant Party, that if the requested information was within the jurisdiction of the

Applicant Party then the competent authority of the Applicant Party would be able to

obtain the information under the laws or in the normal course of administrative practice

of the Applicant Party and that it is in conformity with this Agreement; and

(i) a statement that the Applicant Party has pursued all means available in its own territory

to obtain the information, except those that would give rise to disproportionate

difficulties.

6 The competent authority of the Requested Party shall forward the requested information as

promptly as possible to the Applicant Party.

ARTICLE 6

TAX EXAMINATIONS ABROAD

I By reasonable notice given in advance, the Applicant Party may request that the Requested

Party allows representatives of the competent authority of the Applicant Party to enter the territory

of the Requested Party, to the extent permitted under its laws, to interview individuals and examine

records with the prior written consent of the individuals or other persons concerned. The competent

authority of the Requested Party shall notify the competent authority of the Applicant Party of the

time and place of the meeting with the individuals concerned.

2 At the request of the competent authority of the Applicant Party, the competent authority of

the Requested Party may allow representatives of the competent authority of the Applicant Party to

be present at the appropriate part of a tax examination in the Requested Party.

3 If the request referred to in paragraph 2 is acceded to, the competent authority of the

Requested Party conducting the examination shall, as soon as possible, notify the competent

authority of the Applicant Party about the time and place of the examination, the authority or

official designated to carry out the examination and the procedures and conditions required by the

Requested Party for the conduct of the examination. All decisions with respect to the conduct of the

tax examination shall be made by the Requested Party conducting the examination.

ARTICLE 7

POSSIBILITY OF DECLINING A REQUEST

1 The Requested Party shall not be required to obtain or provide information that the Applicant

Party would not be able to obtain under its own laws for purposes of the administration or

enforcement of its own tax laws. The competent authority of the Requested Party may decline to

assist where the request is not made in conformity with this Agreement.

2 The provisions of this Agreement shall not impose on a Contracting Party the obligation to

supply information which would disclose any trade, business, industrial, commercial or professional

secret or trade process. Notwithstanding the foregoing, information of the type referred to in Article

5, paragraph 4 shall not be treated as such a secret or trade process merely because it meets the

criteria in that paragraph.

3 The provisions of this Agreement shall not impose on a Contracting Party the obligation to

obtain or provide information, which would reveal confidential communications between a client

and an attorney, solicitor or other admitted legal representative where such communications are:

(a) produced for the purposes of seeking or providing legal advice or

(b) produced for the purposes ofuse in existing or contemplated legal proceedings.

4 The Requested Party may decline a request for information if the disclosure of the

information would be contrary to public policy (ordre public).

5 A request for information shall not be refused on the ground that the tax claim giving rise to

the request is disputed by the taxpayer.

6 The Requested Party may decline a request for information if the information is requested by

the Applicant Party to administer or enforce a provision of the tax law of the Applicant Party, or

any requirement connected therewith, which discriminates against a national of the Requested Party

as compared with a national of the Applicant Party in the same circumstances.

ARTICLE 8

CONFIDENTIALITY

1 All information provided and received, including in conjunction with a request for assistance,

by the competent authorities of the Contracting Parties shall be kept confidential.

2 This information may be disclosed only to persons or authorities (including courts and

administrative bodies) of the Contracting Party concerned with the assessment or collection of, the

enforcement or prosecution in respect of, or the determination of appeals in relation to, the taxes

covered by this Agreement. Such persons or authorities shall use such information only for such

purposes. For these purposes, information may be used in public court proceedings or in judicial

decisions.

3 Such information may not be used for any purpose other than for the purpose stated in

Article 1 without the expressed written consent of the competent authority of the Requested Party.

4 Information received under this Agreement must not be disclosed to any other State or

sovereign territory not party to this Agreement without the expressed written consent of the

competent authority of the Requested Party.

5 Personal data may be transmitted to the extent necessary for carrying out the provisions of this

Agreement and subject to the provisions of the law of the Requested Party.

6 Information received by the Requested Party in conjunction with a request for assistance

under this agreement shall likewise be treated as confidential in the Requested Party.

ARTICLE 9

COSTS

Unless the competent authorities of the Contracting Parties otherwise agree, ordinary costs

incurred in providing assistance shall be borne by the Requested Party, and extraordinary costs

incurred in providing assistance (including reasonable costs of engaging external advisors in

connection with litigation or otherwise) shall be borne by the Applicant Party. At the request of

either Contracting Party, the competent authorities shall consult as necessary with regard to this

Article, and in particular the competent authority of the Requested Party shall consult with the

competent authority of the Applicant Party in advance if the costs ofproviding information with

respect to a specific request are expected to be significant.

ARTICLE 10

MUTUAL AGREEMENT PROCEDURE

1 Where difficulties or doubts arise between the Contracting Parties regarding the

implementation or interpretation of this Agreement, the competent authorities shall endeavour to

resolve the matter by mutual agreement.

2 In addition to the endeavours referred to in paragraph 1, the competent authorities of the

Contracting Parties may mutually agree on the procedures to be used under this Agreement.

3 The competent authorities of the Contracting Parties may communicate with each other

directly for purposes of this Article.

4 The Contracting Parties may also agree on other forms of dispute resolution.

ARTICLE 11

ENTRY INTO FORCE

The Contracting Parties shall notify each other in writing through the diplomatic channel of the

completion of their constitutional and legal procedures for the entry into force of this Agreement.

This Agreement shall enter into force one month after the date of the last notification and shall have

effect for all requests made but only with respect of taxable periods beginning on or after 1 July

2011.

ARTICLE 12

TERMINATION

1 This Agreement shall continue in effect indefinitely, but either of the Contracting Parties may

after the expiration of 3 years from the date of its entry into force, give to the other Contracting

Party through the diplomatic channel written notice of termination.

2 Such termination shall become effective on the first day of the month following the expiration

of a period of three months after the date of receipt ofnotice of termination by the other Contracting

Party.

3 Notwithstanding any termination of this Agreement, the Contracting Parties shall remain

bound by the provisions of Article 8 with respect to any information provided and received under

this Agreement.

IN WITNESS WHEREOF the undersigned, being duly authorised thereto by their respective

Governments, have signed this Agreement.

DONE at

language.

, this day of , 2011, in duplicate, in the English

FOR THE GOVERNMENT OF

AUSTRALIA:

FOR THE GOVERNMENT OF THE

PRINCIPALITY OF LIECHTENSTEIN:


AGREEMENT

BETWEEN


AND

THE GOVERNMENT OF THE MACAO SPECIAL ADMINISTRATIVE REGION OFTHE PEOPLE'S REPUBLIC OF CHINA

FOR

THE EXCHANGE OF INFORMATION RELATING TO TAXES

Signed in Macaoon

12 July 2011


THE GOVERNMENT OF AUSTRALIA AND THE GOVERNMENT OF THE MACAOSPECIAL ADMINISTRATIVE REGION OF THE PEOPLE'S REPUBLIC OF CHINA,

Desiring to facilitate the exchange of information with respect to taxes, have agreed as follows:

Article 1

OBJECT AND SCOPE OF THE AGREEMENT

The competent authorities of the Contracting Parties shall provide assistance through exchange ofinformation that is foreseeably relevant to the administration and enforcement of the internallaws of the Contracting Parties concerning taxes covered by this Agreement. Such informationshall include information that is foreseeably relevant to the determination, assessment andcollection of such taxes, the recovery and enforcement of tax claims, or the investigation orprosecution of tax matters. Information shall be exchanged in accordance with the provisions ofthis Agreement and shall be treated as confidential in the manner provided in Article 8. Therights and safeguards secured to persons by the laws or administrative practice of the requestedParty remain applicable. The requested Party will use its best endeavours to ensure that any suchrights and safeguards are not applied in a manner that unduly prevents or delays effectiveexchange of information.

Article 2

JURISDICTION

A requested Party is not obligated to provide information which is neither held by its authoritiesnor in the possession or control of persons who are within its territorial jurisdiction.

Article 3

TAXES COVERED

1. The taxes which are the subject of this Agreement are:

a) in Macao, taxes of every kind and description imposed by the Government of the MacaoSpecial Administrative Region; and

b) in Australia, taxes of every kind and description imposed under federal laws administeredby the Commissioner of Taxation.

2. This Agreement shall also apply to any identical or substantially similar taxes imposed afterthe date of signature of the Agreement in addition to, or in place of, the existing taxes. Thecompetent authorities of the Contracting Parties shall notify each other of any substantialchanges to the taxation and related information gathering measures covered by theAgreement.

Article 4

DEFINITIONS

1. For the purposes of this Agreement, unless otherwise defined:

a) the term "Macao", means the Macao Special Administrative Region of the People'sRepublic of China; used in a geographical sense, it means the peninsula of Macao and theislands of Taipa and Coloane;

b) the term "Australia", when used in a geographical sense, excludes all external territoriesother than:







and includes any area adjacent to the territorial limits of Australia (including theTerritories specified in this subparagraph) in respect of which there is fOr the time beingin force, consistently with international law, a law of Australia dealing with theexploration for or exploitation of any of the natural resources of the exclusive economiczone or the seabed and subsoil of the continental shelf;

c) the term "collective investment fund or scheme" means any pooled investment vehicle,irre~pective of legal form. The term "public collective investment fund or scheme" meansany collective investment fund or scheme provided the units, shares or other interests in thefund or scheme can be readily purchased, sold or redeemed by the public. Units, shares orother interests in the fund or scheme can be readily purchased, sold or redeemed "by thepublic" if the purchase, sale or redemption is not implicitly Or explicitly restricted to alimited group of investors;

d) the term "company" means anybody corporate or any entity that is treated as a bodycorporate for tax purposes;

e) the tenn "competent authority" means,

i) in the case of Macao, the Chief Executive or his authorised representative; and

ii) in the case of Australia, the Commissioner of Taxation or an authorised representative

of the Commissioner;

f) the tenn "Contracting Party" means Macao or Australia as the context requires;

g) the tenn "criminal laws" means all criminal laws designated as such under intemallaw

irrespective of whether contained in the tax laws, the criminal code or other statutes;

h) the tenn "criminal tax matters" means tax matters involving intentional conduct which is

liable to prosecution under the criminal laws of the requesting Party;

i) the tenn "infonnation" means any fact, statement, document or record in any fonn

whatever;

j) the tenn "infonnation gathering measures" means laws and administrative or judicial

procedures that enable a Contracting Party to obtain and provide the requested

infonnation;

k) the tenn "person" includes an individual, a company and any other body of persons;

1) the tenn "principal class of shares" means the class or classes of shares representing a

majority of the voting power and value of the company;

m) the tenn "publicly traded company" means any company whose principal class of shares

is listed on a recognised stock exchange provided its listed shares can be readily

purchased or sold by the public. Shares can be purchased or sold "by the public" if the

purchase or sale of shares is not implicitly or explicitly restricted to a limited group of

investors;

n) the tenn "recognised stock exchange" means any stock exchange agreed upon by the

competent authorities of the Contracting Parties;

0) the tenn "requested Party" means the Contracting Party requested to provide infonnation;

p) the tenn "requesting Party" means the Contracting Party requesting infonnation; and

q) the tenn "tax" means any tax to which the Agreement applies.

2. As regards the application of this Agreement at any time by a Contracting Party, any tenn not

defmed therein, unless the context otherwise requires shall have the meaning that it has at that

time under the law of that Party, any meaning under the applicable tax laws of that Party

prevailing over a meaning given to the tenn under other laws of that Party.

Article 5


1. The competent authority of the requested Party shall provide upon request information for thepurposes referred to in Article 1. Such information shall be exchanged without regard towhether the conduct being investigated would constitute a crime under the laws of therequested Party if such conduct occurred in the requested Party.

2. If the information in the possession of the competent authority of the requested Party is notsufficient to enable it to comply with the request for information, that Party shall use allrelevant information gathering measures to provide the requesting Party with the informationrequested, notwithstanding that the requested Party may not need such information for itsown tax purposes.

3. If specifically requested by the competent authority of the requesting Party, the competentauthority of the requested Party shall provide information under this Article, to the extentallowable under its internal laws, in the form of depositions of witnesses and authenticatedcopies of original records.

4. Each Contracting Party shall ensure that its competent authorities for the purposes specifiedin Article 1 of the Agreement, have the authority to obtain and provide upon request:

a) information held by banks, other fmancial institutions, and any person acting in an agency orfiduciary capacity including nominees and trustees;

b) information regarding the ownership of companies, partnerships, trusts, foundations,"Anstalten" and other persons, including, within the constraints of Article 2, ownershipinformation on all such persons in an ownership chain; in the case of trusts, information onsettlors, trustees, beneficiaries and protectors; and in the case of foundations, information onfounders, members of the foundation council and beneficiaries. Further, this Agreement doesnot create an obligation on the Contracting Parties to obtain or provide ownershipinformation with respect to publicly traded companies or public collective investment fundsor schemes unless such information can be obtained without giving rise to disproportionatedifficulties.

5. The competent authority of the requesting Party shall provide the following information to thecompetent authority of the requested Party when making a request for information under thisAgreement to demonstrate the foreseeable relevance of the information to the request:

a) the identity ofthe person under examination or investigation;

b) a statement of the information sought including its nature and the form in which therequesting Party wishes to receive the information from the requested Party;

c) the tax purpose for which the information is sought;

d) the grounds for believing that the information requested is held in the requested Party or is inthe possession or control of a person within the jurisdiction of the requested Party;

e) to the extent known, the name and address of any person believed to be in possession of therequested information;

f) a statement that the request is in conformity with the law and administrative practices of therequesting Party, that if the requested information was within the jurisdiction of therequesting Party then the competent authority of the requesting Party would be able to obtainthe information under the laws of the requesting Party or in the normal course ofadministrative practice and that the information request is in conformity with thisAgreement; and

g) a statement that the requesting Party has pursued all means available in its own territory toobtain the information, except those that would give rise to disproportionate difficulties.

6. The competent authority of the requested Party shall forward the requested information aspromptly as possible to the requesting Party. To ensure a prompt response, the competentauthority of the requested Party shall:

a) ConfIrm receipt of a request in writing to the competent authority ofthe requesting Party andshall notify the competent authority of the requesting Party of defIciencies in the request, ifany, within 60 days of the receipt of the request.

b) If the competent authority of the requested Party has been unable to obtain and provide theinformation within 90 days of receipt of the request, including if it encounters obstacles infurnishing the information or it refuses to furnish the information, it shall immediatelyinform the requesting Party, explaining the reason for its inability, the nature of the obstaclesor the reasons for its refusal.

Article 6


1. A Contracting Party may, in accordance with its internal laws, allow representatives of thecompetent authority of the other Contracting Party to enter the territory of the fIrst-mentionedParty to interview individuals and examine records with the written consent of the personsconcerned. The competent authority of the second-mentioned Party shall notify the competentauthority of the fIrst-mentioned Party of the time and place of the meeting with theindividuals concerned.

2. At the request of the competent authority of one of the Contracting Party, the competentauthority of the other Contracting Party may allow representatives of the competent authorityof the fIrst-mentioned Party to be present at the appropriate part of a tax examination in thesecond-mentioned Party.

3. If the request referred to in paragraph 2 is acceded to, the competent authority of theContracting Party conducting the examination shall, as soon as possible, notify the competentauthority of the other Party about the time and place of the examination, the authority orofficial designated to carry out the examination and the procedures and conditions requiredby the fIrst-mentioned Party for the conduct of the examination. All decisions with respect tothe conduct of the tax examination shall be made by the Party conducting the examination.

Article 7


1. The requested Party shall not be required to obtain or provide information that the requestingParty would not be able to obtain under its own laws for purposes of the administration orenforcement of its own tax laws. The competent authority of the requested Party may declineto assist where the request is not made in conformity with this Agreement.

2. The provisions of this Agreement shall not impose on a Contracting Party the obligation tosupply information which would disclose any trade, business, industrial, commercial orprofessional secret or trade process. Notwithstanding the foregoing, information of the typereferred to in Article 5, paragraph 4 shall not be treated as such a secret or trade processmerely because it meets the criteria in that paragraph.

3. The provisions of this Agreement shall not impose on a Contracting Party the obligation toobtain or provide information, which would reveal confIdential communications between aclient and an attorney, solicitor or other admitted legal representative where suchcommunications are:

a) produced for the purposes of seeking or providing legal advice or

b) produced for the purposes ofuse in existing or contemplated legal proceedings.

4. The competent authority of the requested Party may decline a request for informationwhere the disclosure of the information would be contrary to public policy (ordrepublic).

5. A request for information shall not be refused on the ground that the tax claim giving rise tothe request is disputed by the taxpayer.

6. The requested Party may decline a request for information if the information is requested bythe requesting Party to administer or enforce a provision of the tax law of the requestingParty, or any requirement connected therewith, which discriminates against a citizen or anational of the requested Party as compared with a citizen or a national of the requestingParty in the same circumstances.

Article 8

CONFIDENTIALITY

Any information received by a Contracting Party under this Agreement shall be treated asconfidential and may be disclosed only to persons or authorities (including courts andadministrative bodies) in the jurisdiction of the Contracting Party concerned with the assessmentor collection of, the enforcement or prosecution in respect of, or the determination of appeals inrelation to, the taxes covered by this Agreement. Such persons or authorities shall use suchinformation only for such purposes. They may disclose the information in public courtproceedings or in judicial decisions. The information may not be disclosed to any other person orentity or authority or any other jurisdiction without the express written consent of the competentauthority of the requested Party.

Article 9

COSTS

Unless the competent authorities of the Contracting Parties otherwise agree, ordinary costsincurred in providing assistance shall be borne by the requested Party and extraordinary costsincurred in providing assistance (including reasonable costs of engaging external advisors inconnection with litigation or otherwise) shall be borne by the requesting Party. At the request ofeither Contracting Party, the competent authorities shall consult as necessary with regard to thisArticle, and in particular the competent authority of the requested Party shall consult with thecompetent authority of the requesting Party in advance if the costs of providing information withrespect to a specific request are expected to be significant.

Article 10

IMPLEMENTATION LEGISLATION

The Contracting Parties shall enact any legislation necessary to comply with, and give effect to,the terms of the Agreement.

Article 11

LANGUAGE

Requests for assistance and answers thereto shall be drawn up in English or any other languageagreed bilaterally between the competent authorities of the Contracting Parties under Article 12.

Article 12


1. Where difficulties or doubts arise between the Contracting Parties regarding the applicationor interpretation of the Agreement, the respective competent authorities shall use their bestefforts to resolve the matter by mutual agreement.

2. In addition to the endeavours referred to in paragraph 1, the competent authorities of theContracting Parties may mutually determine the procedures to be used under AIiicles 5 and6 of this Agreement.

3. The competent authorities of the Contracting Parties may communicate with each otherdirectly for the purposes of reaching agreement under this Article.

4. The Contracting Parties may also agree on other forms of dispute resolution.

Article 13

ENTRY INTO FORCE

The Contracting Parties shall notify each other in writing of the completion of their constitutionaland legal procedures for the entry into force of this Agreement. This Agreement shall enter intoforce on the date of the last notification, and shall thereupon have effect for criminal tax mattersand for all other matters covered in Article 1 from 1 July 2011.

Article 14

DURATION AND TERMINATION

1. This Agreement shall remain in force until terminated by either Contracting Party.

2. Either Contracting Party may, after the expiry of five years from the date of its entry intoforce, terminate the Agreement by serving a written notice of termination to the otherContracting Party.

3. Such termination shall become effective on the first day of the month following theexpiration of a period of six months after the date of receipt of notice of termination by theother Contracting Party. All requests received up to the effective date of termination shall bedealt with in accordance with the provisions of the Agreement.

4. If a Contracting Party terminates this Agreement, notwithstanding such termination, bothParties shall remain bound by the provisions of Article 8 of this Agreement with respect toany information obtained under this Agreement.

IN WITNESS WHEREOF the undersigned, being duly authorised thereto by their respective

Governments, have signed this Agreement.

DONE in duplicate at , on day of 2011,

in the Chinese, Portuguese and English languages, all texts being equally authentic. In case of

divergence between the texts, the English version shall prevail.

FOR THE GOVERNMENT OF AUSTRALIA: FOR THE GOVERNMENT OF THE MACAOSPECIAL ADMINISTRATIVE REGION OF

THE PEOPLE'S REPUBLIC OF CHINA:


AGREEMENT

BETWEEN


AND

THE GOVERNMENT OF COSTA RICA

ON

THE EXCHANGE OF INFORMATION WITH RESPECT TO TAXES

Mexico City 1 July 2011


The Government of Australia and the Government of Costa Rica,

Desiring to facilitate the exchange of information with respect to taxes,


ARTICLE 1


The competent authorities of the Contracting States shall provide assistance through

exchange of information that is foreseeably relevant to the administration and

enforcement of the domestic laws of those States conceming taxes covered by this

Agreement. Such information shall include information that is foreseeably relevant to

the determination, assessment and collection of such taxes, the recovery and

enforcement of tax claims, or the investigation or prosecution of tax matters.

Information shall be exchanged in accordance with the provisions of this Agreement

and shall be treated as confidential in the manner provided in Article 8. The rights

and safeguards secured to persons by the laws or administrative practice of the

Requested State remain applicable. The Requested State will use its best endeavours

to ensure that any such rights and safeguards are not applied in a manner that unduly


ARTICLE 2

JURISDICTION

A Requested State is not obligated to provide information which is neither held by its

authorities nor in the possession or control of persons who are within its territorial

jurisdiction.

ARTICLE 3

TAXES COVERED

1 The existing taxes which are the subject of this Agreement are:

(a) in Australia, taxes of every kind and description imposed under federal

laws administered by the Commissioner of Taxation; and

(b) in the Republic of Costa Rica, taxes of every type and description,

including customs duties, collected by the Ministry of Finance.

2 This Agreement shall also apply to any identical or substantially similar taxes

imposed after the date of signature of this Agreement in addition to, or in place

of, the existing taxes. The Agreement shall also apply to such other taxes as

may be agreed in an exchange of letters between the Contracting States. The

competent authorities of the Contracting States shall notify each other of any

substantial changes to the taxation and related information gathering measures

covered by this Agreement.

3 This Agreement shall not apply to taxes imposed by states, municipalities, or

other political subdivisions, or possessions of a Contracting State.

ARTICLE 4

DEFINITIONS


(a) the term "Applicant State" means the Contracting State requesting

information;

(b) the term "Australia", when used in a geographical sense, excludes all

external territories other than:







and includes any area adjacent to the territorial limits of Australia

(including the Territories specified in this subparagraph) in respect of

which there is for the time being in force, consistently with international

law, a law of Australia dealing with the exploration for or exploitation of

any of the natural resources of the exclusive economic zone or the seabed

and subsoil of the continental shelf;

(c) the term "Costa Rica" means the land, maritime, and air space under its

sovereignty and the exclusive economic zone and the continental shelf

within which it exercises sovereign rights and jurisdiction in accordance

with international law and its domestic law;

(d) the term "collective investment fund or scheme" means any pooled

investment vehicle, irrespective of legal form. The term "public collective

investment fund or scheme" means any collective investment fund or

scheme provided the units, shares or other interests in the fund or scheme

can be readily purchased, sold or redeemed by the public. Units, shares or

other interests in the fund or scheme can be readily purchased, sold or

redeemed "by the public" if the purchase, sale or redemption is not

implicitly or explicitly restricted to a limited group of investors;

(e) the term "company" means any body corporate or any entity that is treated

as a body corporate for tax purposes;

(f) the term "competent authority" means in the case of Australia, the

Commissioner of Taxation or an authorised representative of the

Commissioner and, in the case of Costa Rica, the Director of the Tax

Administration or his authorised representative;

(g) the term "Contracting State" means Australia or Costa Rica as the context

reqUITes;

(h) the term "criminal laws" means all criminal laws designated as such under

domestic law irrespective of whether contained in the tax laws, the

criminal code or other statutes;

(i) the term "criminal tax matters" means tax matters involving intentional

conduct which is liable to prosecution under the criminal laws of the

Applicant State;

G) the term "information" means any fact, statement or record in any form

whatever;

(k) the term "information gathering measures" means laws and administrative

or judicial procedures that enable a Contracting State to obtain and

provide the requested information;

(1) the term "person" includes an individual, a company and any other body

of persons;

(m) the term "principal class of shares" means the class or classes of shares

representing a majority of the voting power and value of the company;

(n) the term "publicly traded company" means any company whose principal

class of shares is listed on a recognised stock exchange provided its listed

shares can be readily purchased or sold by the public. Shares can be

purchased or sold "by the public" if the purchase or sale of shares is not


(0) the term "recognised stock exchange" means any stock exchange agreed

upon by the competent authorities of the Contracting Parties;

(P) the term "Requested State" means the Contracting State requested to

provide information; and

(q) the term "tax" means any tax to which this Agreement applies.

2 As regards the application of this Agreement at any time by a Contracting

State, any term not defined therein shall, unless the context otherwise requires, have

the meaning that it has at that time under the law of that State, any meaning under the

applicable tax laws of that State prevailing over a meaning given to the term under

other laws of that State.

ARTICLES


1 The competent authority of the Requested State shall provide upon request

information for the purposes referred to in Article 1. Such information shall be

exchanged without regard to whether the conduct being investigated would constitute

a crime under the laws of the Requested State if such conduct occurred in the

Requested State.

2 If the information in the possession of the competent authority of the Requested

State is not sufficient to enable it to comply with the request for information, that

State shall use all relevant information gathering measures to provide the Applicant

State with the information requested, notwithstanding that the Requested State may

not need such information for its own tax purposes.

3 If specifically requested by the competent authority of an Applicant State; the

competent authority of the Requested State shall provide information under this

Article, to the extent allowable under its domestic laws, in the form of depositions of

witnesses and authenticated copies of original records.

4 Each Contracting State shall ensure that its competent authority for the purposes

specified in Article I of this Agreement, has the authority to obtain and provide upon

request:

(a) information held by banks, other financial institutions, and any person

acting in an agency or fiduciary capacity including nominees and trustees;

(b) information regarding the ownership of companies, partnerships, trusts,

foundations, "Anstalten" and other persons, including, within the

constraints of Article 2, ownership information on all such persons in an

ownership chain; in the case of trusts, information on settlors, trustees,

beneficiaries and protectors; and in the case of foundations, information

on founders, members of the foundation council and beneficiaries.

Further, this Agreement does not create an obligation on the Contracting

Parties to obtain or provide ownership information with respect to

publicly traded companies or public collectiveinvestment funds or

schemes unless such information can be obtained without giving rise to

disproportionate difficulties.

5 The competent authority of the Applicant State shall provide the following

information to the competent authority of the Requested State when making a request

for information under this Agreement to demonstrate the foreseeable relevance of the

information to the request:


(b) a statement of the information sought including its nature and the form in

which the Applicant State wishes to receive the information from the

Requested State;

(c) the tax purpose for which the information is sought;

(d) the grounds for believing that the information requested is held in the

Requested State or is in the possession or control of a person within the

jurisdiction of the Requested State;

(e) to the extent known, the name and address of any person believed to be in

possession of the requested information;

(f) a statement that the request is in conformity with the law and

administrative practices of the Applicant State, that if the requested

information was within the jurisdiction of the Applicant State then the

competent authority of the Applicant State would be able to obtain the

information under the laws of the Applicant State or in the normal course

of administrative practice and that the information request is in conformity

with this Agreement; and

(g) a statement that the Applicant State has pursued all means available in its

own tenitory to obtain the information, except those that would give rise

to disproportionate difficulties.

6 The competent authority of the Requested State shall forward the requested

information as promptly as possible to the Applicant State. To ensure a prompt

response, the competent authority of the Requested State shall:

(a) confirm receipt of a request in writing to the competent authority of the

Applicant State and shall notify the competent authority of the Applicant

State of deficiencies in the request, if any, within 60 days of the receipt of

the request; and

(b) if the competent authority of the Requested State has been unable to

obtain and provide the information within 90 days of receipt of the

request, including if it encounters obstacles in furnishing the information

or it refuses to furnish the information, it shall immediately inform the

Applicant State, explaining the reason for its inability, the nature of the

obstacles or the reasons for its refusal.

ARTICLE 6


I A Contracting State may allow representatives of the competent authority of the

other Contracting State to enter the territory of the first-mentioned State to interview

individuals and examine records with the written consent of the persons concerned.

The competent authority of the second-mentioned State shall notify the competent

authority of the first-mentioned State of the time and place of the meeting with the

individuals concerned.

2 At the request of the competent authority of one ofthe Contracting States, the

competent authority of the other Contracting State may allow representatives of the

competent authority of the first-mentioned State to be present at the appropriate part

of a tax examination in the second-mentioned State.

3 If the request referred to in paragraph 2 is acceded to, the competent authority

of the Contracting State conducting the examination shall, as soon as possible, notify

the competent authority of the other State about the time and place of the examination,

the authority or official designated to carry out the examination and the procedures

and conditions required by the first-mentioned State for the conduct of the

examination. All decisions with respect to the conduct of the tax examination shall be

made by the State conducting the examination.

ARTICLE 7


1 The Requested State shall not be required to obtain or provide information that

the Applicant State would not be able to obtain under its own laws for purposes of the

administration or enforcement of its own tax laws. The competent authority of the

Requested State may decline to assist where the request is not made in conformity

with this Agreement.

2 The provisions of this Agreement shall not impose on a Contracting State the

obligation to supply information which would disclose any trade, business, industrial,

commercial or professional secret or trade process. Notwithstanding the foregoing,

information of the type referred to in paragraph 4 of Article 5 shall not be treated as

such a secret or trade process merely because it meets the criteria in that paragraph.

3 The provisions of this Agreement shall not impose on a Contracting State the

obligation to obtain or provide information, which would reveal confidential

communications between a client and an attorney, solicitor or other admitted legal

representative where such communications are:

(a) produced for the purposes of seeking or providing legal advice; or

(b) produced for the purposes of use in existing or contemplated legal

proceedings.

4 The Requested State may decline a request for information if the disclosure of

the information would be contrary to public policy (ordre public).

5 A request for information shall not be refused on the ground that the tax claim

giving rise to the request is disputed by the taxpayer.

6 The Requested State may decline a request for information if the information

is requested by the Applicant State to administer or enforce a provision of the tax law

of the Applicant State, or any requirement connected therewith, which discriminates

against a national of the Requested State as compared with a national of the Applicant

State in the same circumstances.

ARTICLE 8

CONFIDENTIALITY

Any information received by a Contracting State under this Agreement shall be

treated as confidential and may be disclosed only to persons or authorities (including

courts and administrative bodies) in the jurisdiction of the Contracting State

concerned with the assessment or collection of, the enforcement or prosecution in

respect of, or the determination of appeals in relation to, the taxes covered by this

Agreement. Such persons or authorities shall use such information only for such

purposes. They may disclose the information in public court proceedings or in

judicial decisions. The information may not be disclosed to any other person or entity

or authority or any other jurisdiction without the express written consent of the

competent authority of the Requested State.

ARTICLE 9

COSTS

Unless the competent authorities of the Contracting States otherwise agree,

ordinary costs incurred in providing assistance shall be borne by the Requested State,

and extraordinary costs incurred in providing assistance (including reasonable costs of

engaging external advisors in connection with litigation or otherwise) shall be borne

by the Applicant State. At the request of either Contracting State, the competent

authorities shall consult as necessary with regard to this Article, and in particular the

competent authority of the Requested State shall consult with the competent authority

of the Applicant State in advance if the costs of providing information with respect to

a specific request are expected to be significant.

ARTICLE 10

IMPLEMENTATION LEGISLATIONThe Contracting States shall enact any legislation necessary to comply with, and give

effect to, the terms of this Agreement.

ARTICLE 11


1 The competent authorities of the Contracting States shall jointly endeavour to

resolve any difficulties or doubts arising as to the interpretation or application of this

Agreement.

2 In addition to the endeavours referred to in paragraph 1, the competent

authorities of the Contracting States may mutually determine the procedures to be

used under Articles 5 and 6.

3 The competent authorities of the Contracting States may communicate with

each other directly for the purposes of this Article.

4 The Contracting States may also agree on other forms of dispute resolution.

ARTICLE 12

ENTRY INTO FORCE

1 The Government of Australia and the Government of Costa Rica shall notify

each other in writing through the diplomatic channel of the completion of their

constitutional and legal procedures for the entry into force of this Agreement. This

Agreement shall enter into force on the date of the last notification, and shall

thereupon have effect:

a) for criminal tax matters on 1 July 2011; and

b) for all other matters covered in Article 1 on 1 July 2011, but only in

respect of taxable periods beginning on or after that date, or where there is

no taxable period, all charges to tax arising on or after that date.

ARTICLE 13

TERMINATION

1 This Agreement shall continue in effect indefinitely, but either of the

Contracting States may, after the expiration of 3 years from the date of its entry into

force, give to the other Contracting State through the diplomatic channel written

notice of termination.

2 Such tennination shall become effective on the first day of the month following

the expiration of a period of 6 months after the date of receipt of notice of termination

by the other Contracting State.

3 Notwithstanding any termination of this Agreement, the Contracting States shall

remain bound by the provisions of Article 8 with respect to any information obtained

under this Agreement.

IN WITNESS WHEREOF the undersigned, duly authorised thereto by their

respective Governments, have signed this Agreement.

DONE at this day of

in duplicate in the English and Spanish languages. In case of divergence

between both texts, the English version shall prevail.

,2011,


AUSTRALIA:


COSTA RICA:


AGREEMENT

BETWEEN


AND

THE GOVERNMENT OF LIBERIA

ON

THE EXCHANGE OF INFORMATION WITH RESPECT TO TAXES

(Monrovia on 11 August 2011)


The Government of Australia and the Government of Liberia,

Desiring to facilitate the exchange of information with respect to taxes,


ARTICLE 1


The competent authorities of the Contracting Parties shall provide assistance through

exchange of information that is foreseeably relevant to the administration and

enforcement of the domestic laws of those Parties concerning taxes covered by this

Agreement. Such information shall include information that is foreseeably relevant to

the determination, assessment and collection of such taxes, the recovelY and

enforcement of tax claims, or the investigation or prosecution of tax matters.

Information shall be exchanged in accordance with the provisions of this Agreement

and shall be treated as confidential in the manner provided in Article 8. The rights

and safeguards secured to persons by the laws or administrative practice of the

Requested Party remain applicable. The Requested Party shall use its best endeavours

to ensure that any such rights and safeguards are not applied in a manner that unduly


ARTICLE 2

JURISDICTION

A Requested Party is not obligated to provide information which is neither held by its

authorities nor in the possession or control of persons who are within its territorial

jurisdiction.

ARTICLE 3

TAXES COVERED

I The existing taxes which are the subject of this Agreement are:

(a) in Australia, taxes of every kind and description imposed under federal

laws administered by the Commissioner of Taxation; and

(b) in Liberia, taxes of every kind and description imposed by the

Government of Liberia.

2 This Agreement shall also apply to any identical or substantially similar taxes

imposed after the date of signature of this Agreement in addition to, or in place of, the

existing taxes. The Agreement shall also apply to such other taxes as may be agreed

in an exchange of letters between the Contracting Parties. The competent authorities

of the Contracting Parties shall notifY each other of any substantial changes to the

taxation and related information gathering measures covered by this Agreement.

3 This Agreement shall not apply to taxes imposed by states, municipalities, or

other political subdivisions, or possessions of a Contracting Party.

ARTICLE 4

DEFINITIONS


(a) the term "Applicant Party" means the Contracting Party requesting

information;

(b) the term "Australia", when used in a geographical sense, excludes all

external territories other than:



(iii) the Territory ofCocos (Keeling) Islands;




and includes any area adjacent to the territorial limits of Australia

(including the Territories specified in this subparagraph) in respect of

which there is for the time being in force, consistently with international

law, a law ofAustralia dealing with the exploration for the exclusive

economic zone or exploitation of any of the natural resources of the

seabed and subsoil of the continental shelf;

(c) the term "Liberia" means the Republic of Liberia situated and located in

West Africa, including its territorial seas and any area beyond the

territorial sea within which Liberia, in accordance with International Law,

exercises jurisdiction;

(d) the term "collective investment fund or scheme" means any pooled

investment vehicle, irrespective of legal form. The term "public collective

investment fund or scheme" means any collective investment fund or

scheme provided the units, shares or other interests in the fund or scheme

can be readily purchased, sold or redeemed by the public. Units, shares or

other interests in the fund or scheme can be readily purchased, sold or

redeemed "by the public" if the purchase, sale or redemption is not


(e) the term"company" means any body corporate or any entity that is treated

as a body corporate for tax purposes;

(f) the term "competent authority" means in the case of Australia, the

Commissioner of Taxation or an authorised representative of the

Commissioner and, in the case of Liberia, the Minister of Finance or his

authorised representative;

(g) the term "Contracting Party" means Australia or Liberia as the context

reqUITes;

(h) the term "criminal laws" means all criminal laws designated as such under

domestic law irrespective of whether contained in the tax laws, the

criminal code or other statutes;

(i) the term "criminal tax matters" means tax matters involving intentional

conduct which is liable to prosecution under the criminal laws of the

Applicant Party;

(j) the term "information" means any fact, statement or record in any form

whatever;

(k) the tenn "infonnation gathering measures" means laws and administrative

or judicial procedures that enable a Contracting Party to obtain and

provide the requested infonnation;

(1) the tenn "person" includes an individual, a company and any other body

ofpersons;

(m) the tenn "principal class of shares" means the class or classes of shares

representing a majority ofthe voting power and value of the company;

(n) the tenn "publicly traded company" means any company whose principal

class of shares is listed on a recognised stock exchange provided its listed

shares can be readily purchased or sold by the public. Shares can be

purchased or sold "by the public" if the purchase or sale of shares is not


(0) the tenn "recognised stock exchange" means any stock exchange agreed

upon by the competent authorities of the Contracting Parties;

(P) the tenn "Requested Party" means the Contracting Party requested to

provide infonnation; and

(q) the tenn "tax" means any tax to which this Agreement applies.

2 As regards the application of this Agreement at any time by a Contracting

Party, any tenn not defined therein shall, unless the context otherwise requires, have

the meaning that it has at that time under the law of that Party, any meaning under the

applicable tax laws of that Party prevailing over a meaning given to the tenn under

other laws of that Party.

ARTICLE 5


1 The competent authority of the Requested Party shall provide upon request

infonnation for the purposes referred to in Article 1. Such infonnation shall be

exchanged without regard to whether the conduct being investigated would constitute

a crime under the laws of the Requested Party if such conduct occurred in the

Requested Party.

2 If the information in the possession of the competent authority of the Requested

Party is not sufficient to enable it to comply with the request for information, that

Party shall use all relevant information gathering measures to provide the Applicant

Party with the information requested, notwithstanding that the Requested Party may

not need such information for its own tax purposes.

3 If specifically requested by the competent authority of an Applicant Party, the

competent authority of the Requested Party shall provide information under this

Article, to the extent allowable under its domestic laws, in the form of depositions of

witnesses and authenticated copies of original records.

4 Each Contracting Patty shall ensure that its competent authority for the purposes

specified in Article 1 of this Agreement, has the authority to obtain and provide upon

request:

(a) information held by banks, other financial institutions, and any person

acting in an agency or fiduciary capacity including nominees and trustees;

(b) information regarding the ownership of companies, partnerships, trusts,

foundations, "Anstalten" and other persons, including, within the

constraints of Article 2, ownership infonnation on all such persons in an

ownership chain; in the case of trusts, information on settlors, trustees,

beneficiaries and protectors; and in the case of foundations, information

on founders, members of the foundation council and beneficiaries.

Further, this Agreement does not create an obligation on the Contracting

Parties to obtain or provide ownership information with respect to

publicly traded companies or public collective investment funds or

schemes unless such information can be obtained without giving rise to

disproportionate difficulties.

5 The competent authority of the Applicant Party shall provide the following

information to the competent authority of the Requested Party when making a request

for information under this Agreement to demonstrate the foreseeable relevance of the

information to the request:


(b) a statement of the information sought including its nature and the form in

which the Applicant Party wishes to receive the information from the

Requested Party;

(c) the tax purpose for which the information is sought;

(d) the grounds for believing that the information requested is held in the

Requested Party or is in the possession or control of a person within the

jurisdiction of the Requested Party;

(e) to the extent lrnown, the name and address of any person believed to be in

possession of the requested information;

(f) a statement that the request is in conformity with the law and

administrative practices of the Applicant Party, that if the requested

information was within the jurisdiction of the Applicant Party then the

competent authority of the Applicant Party would be able to obtain the

information under the laws of the Applicant Pmiy or in the normal course

of administrative practice and that the information request is in conformity

with this Agreement; and

(g) a statement that the Applicant Party has pursued all means available in its

ownterritory to obtain the information, except those that would give rise

to disproportionate difficulties.

6 The competent authority of the Requested Party shall forward the requested

information as promptly as possible to the Applicant Party. To ensure a prompt

response, the competent authority of the Requested Party shall:

(a) confirm receipt of a request in writing to the competent authority of the

Applicant Party and shall notify the competent authority of the Applicant

Party of deficiencies in the request, if any, within 60 days of the receipt of

the request; and

(b) if the competent authority of the Requested Party has been unable to

obtain and provide the information within 90 days of receipt of the

request, including if it encounters obstacles in furnishing the information

or it refuses to furnish the infonnation, immediately infonn the Applicant

Party, explaining the reason for its inability, the nature of the obstacles or

the reasons for its refusal.

ARTICLE 6


1 A Contracting Party may allow representatives of the competent authority of the

other Contracting Party to enter the territory of the first-mentioned Party to interview

individuals and examine records with the written consent of the persons concerned.

The competent authority of the second-mentioned Party shall notify the competent

authority of the first-mentioned Party of the time and place of the meeting with the

individuals concerned.

2 At the request of the competent authority of one of the Contracting Parties, the

competent authority of the other Contracting Party may allow representatives of the

competent authority of the first-mentioned Party to be present at the appropriate part

of a tax examination in the second-mentioned Party.

3 If the request referred to in paragraph 2 is acceded to, the competent authority

of the Contracting Party conducting the examination shall, as soon as possible, notify

the competent authority of the other Party about the time and place of the

examination, the authority or official designated to carry out the examination and the

procedures and conditions required by the first-mentioned Party for the conduct of the

examination. All decisions with respect to the conduct of the tax examination shall be

made by the Party conducting the examination.

ARTICLE 7


1 The Requested Party shall not be required to obtain or provide information that

the Applicant Party would not be able to obtain under its own laws for purposes of the

administration or enforcement of its own tax laws. The competent authority of the

Requested Party may decline to assist where the request is not made in conformity

with this Agreement.

2 The provisions of this Agreement shall not impose on a Contracting Party the

obligation to supply information which would disclose any trade, business, industrial,

commercial or professional secret or trade process. Notwithstanding the foregoing,

information of the type referred to in paragraph 4 of Article 5 shall not be treated as

such a secret or trade process merely because it meets the criteria in that paragraph.

3 The provisions of this Agreement shall not impose on a Contracting Party the

obligation to obtain or provide information, which would reveal confidential

communications between a client and an attorney, solicitor or other admitted legal

representative where such communications are:

(a) produced for the purposes of seeking or providing legal advice; or

(b) produced for the purposes ofuse in existing or contemplated legal

proceedings.

4 The Requested Party may decline a request for information if the disclosure of

the information would be contrary to public policy (ordre public).

5 A request for information shall not be refused on the ground that the tax claim

giving rise to the request is disputed by the taxpayer.

6 The Requested Party may decline a request for information if the information

is requested by the Applicant Party to administer or enforce a provision of the tax law

of the Applicant Party, or any requirement connected therewith, which discriminates

against a national of the Requested Party as compared with a national of the Applicant

Party in the same circumstances.

ARTICLE 8

CONFIDENTIALITY

Any information received by a Contracting Party under this Agreement shall be

treated as confidential and may be disclosed only to persons or authorities (including

courts and administrative bodies) in the jurisdiction of the Contracting Party

concerned with the assessment or collection of, the enforcement or prosecution in

respect of, or the determination of appeals in relation to, the taxes covered by this

Agreement. Such persons or authorities shall use such information only for such

purposes. They may disclose the information in public court proceedings or in

judicial decisions. The information may not be disclosed to any other person or entity

or authority or any other jurisdiction without the express written consent of the

competent authority of the Requested Party.

ARTICLE 9

COSTS

Unless the competent authorities of the Contracting Parties otherwise agree, ordinary.

costs incurred in providing assistance shall be borne by the Requested Party, and

extraordinary costs incurred in providing assistance (including reasonable costs of

engaging external advisors in connection with litigation or otherwise) shall be borne

by the Applicant Party. At the request of either Contracting Party, the competent

authorities. shall consult as necessary with regard to this Article, and in particular the

competent authority of the Requested Party shall consult with the competent authority

of the Applicant Party in advance if the costs of providing information with respect to

a specific request are expected to be significant.

ARTICLE 10

IMPLEMENTATION LEGISLATION

The Contracting Parties shall enact any legislation necessary to comply with, and give

effect to, the terms of this Agreement.

ARTICLE 11


1 The competent authorities of the Contracting Parties shall also jointly endeavour

to resolve any difficulties or doubts arising as to the interpretation or application of

this Agreement.

2 In addition to the endeavours referred to in paragraph 1, the competent

authorities of the Contracting Parties may mutually determine the procedures to be

used under Articles 5 and 6.

3 The competent authorities of the Contracting Parties may communicate with

each other directly for the purposes of this Article.

4 The Contracting Parties may also agree on other forms of dispute resolution.

ARTICLE 12

ENTRY INTO FORCE

The Government of Australia and the Government of Liberia shall notify each other in

writing through the diplomatic channel of the completion of their constitutional and

legal procedures for the entry into force of this Agreement. This Agreement shall

enter into force on the date of the last notification, and shall thereupon have effect:

(a) for criminal tax matters from 1 July 2010; and

(b) for all other matters covered in Article 1 from I July 2010, but only in

respect of taxable periods beginning on or after that date, or where there is no

taxable period, all charges to tax arising on or after that date.

ARTICLE 13

TERMINATION

I This Agreement shall continue in effect indefinitely, but either of the

Contracting Parties may, after the expiration of 3 years from the date of its entry into

force, give to the other Contracting Party through the diplomatic channel written

notice of termination.

2 Such termination shall become effective on the fIrst day of the month following

the expiration of a period of 6 months after the date of receipt of notice of termination

by the other Contracting Party.

3 Notwithstanding any tennination of this Agreement, the Contracting Parties

shall remain bound by the provisions of Article 8 with respect to any information

obtained under this Agreement.

IN WITNESS WHEREOF the undersigned, duly authorised thereto by their

respective Governments, have signed this Agreement.

DONE at Monrovia this 11 th day of August, 2011, in duplicate in the English

language.


AUSTRALIA


LIBERIA

National Interest Analysis [2011] ATNIA 29

with attachment on consultation

Agreements between

the Government of Australia and the Government of the Principality of Liechtensteinon the Exchange of Information on Taxes

done at Vaduz on 21 June 2011[2011] ATNIF 10

the Government of Australia and the Government of Costa Ricaon the Exchange of Information with Respect to Taxes

done at Mexico City on 1 July 2011[2011] ATNIF 14

the Government of Australia and the Government of the Macao Special AdministrativeRegion of the People's Republic of China

for the Exchange of Information Relating to Taxesdone at Macao on 12 July 2011

[2011] ATNIF 11

the Government of Australia and the Government of Liberiaon the Exchange of Information with Respect to Taxes

done at Monrovia on 11 August 2011[2011] ATNIF 15


SUMMARY PAGE

Agreements between





the Government of Australia and the Government of the Macao Special AdministrativeRegion of the People's Repubiic of China


[2011] ATNIF 11



Nature and timing of proposed treaty action

1. The proposed treaty action is to bring into force the Agreement between theGovernment ofAustralia and the Government ofthe Principality ofLiechtenstein on theExchange ofInformation on Taxes (the proposed Liechtenstein Agreement), the Agreementbetween the Government ofAustralia and the Government ofCosta Rica on the Exchange ofInformation with Respect to Taxes (the proposed Costa Rica Agreement), the Agreementbetween the Government ofAustralia and the Government ofthe Macao SpecialAdministrative Region ofthe People's Republic ofChina for the Exchange ofInformationRelating to Taxes (the proposed Macao Agreement) and the Agreement between theGovernment ofAustralia and the Government ofLiberia on the Exchange ofInformation withRespect to Taxes (the proposed Liberia Agreement). The four agreements are hereinafterreferred to collectively as "the proposed Agreements".

Liechtenstein

2. Pursuant to its Article 11, the proposed Liechtenstein Agreement will enter into forceone month after the date of the last notification between Australia and Liechtensteinestablishing that the necessary domestic procedures for entry into force have been completed.The proposed Liechtenstein Agreement will then have effect from that date for all requestsmade, but only with respect of taxable periods beginning on or after 1 July 2011.

Costa Rica

3. Pursuant to its Article 12, the proposed Costa Rica Agreement will enter into force onthe date of the last notification between Australia and Costa Rica establishing that the

necessary domestic procedures for entry into force have been completed. The proposedCosta Rica Agreement will then have effect:

• from 1 July 2011 with respect to criminal tax matters; and

• from 1 July 2011 for all other matters covered in Article 1 of the proposedAgreement, but only in respect of taxable periods beginning on or after 1 July 2011,or where there is no taxable period, all charges to tax arising on or after 1 July 2011.

Macao

4. Pursuant to its Article 13, the proposed Macao Agreement will enter into force on thedate of the last notification between Australia and Macao establishing that the necessarydomestic procedures for entry into force have been completed. The proposed MacaoAgreement will then have effect:


• from 1 July 2011 for all other matters covered in Article 1 of the proposedAgreement.

Liberia

5. Pursuant to its Article 12, the proposed Liberia Agreement will enter into force on thedate of the last notification between Australia and Liberia establishing that the necessarydomestic procedures for entry into force have been completed. The proposed LiberiaAgreement will then have effect:


• from 1 July 2010 for all other matters covered in Article 1 of the proposedAgreement, but only in respect of taxable periods beginning on or after 1 July 2010,or where there is no taxable period, all charges to tax arising on or after 1 July 2010.


6. The key objective of the proposed Agreements, commonly referred to as TaxInformation Exchange Agreements (TIEAs), is to establish a legal basis for the exchange oftax information relating to certain persons and other entities between Australia andLiechtenstein, Australia and Costa Rica, Australia and Macao, and Australia and Liberia.

7. The proposed Agreements will help Australia protect its revenue base by allowing theCommissioner of Taxation to request and receive certain information held in Liechtenstein,Costa Rica, Macao and Liberia and will help improve the integrity of the tax system bydiscouraging tax evasion by individuals and other entities. The proposed Agreements alsoincorporate a number of important safeguards to protect the legitimate interests oftaxpayers,including requirements in relation to confidentiality and legal privilege.

8. The proposed Agreements are four of 32 TIEAs signed by Australia. The proposedAgreements are part of Australia's efforts to conclude TIEAs with jurisdictions that havecommitted to work with member countries of the Organisation for Economic Cooperationand Development (OECD) to improve transparency and establish effective procedures for theexchange of tax information.

9. Liechtenstein, Costa Rica and Liberia are independent countries responsible for theirown domestic affairs. Macao is a region of the People's Republic of China which enjoys ahigh degree of autonomy in all areas except in defence and foreign affairs. Article 136 of

their Basic Law provides: "The Macao Special Administrative Region may, on its own,using the name "Macao, China", maintain and develop relations and conclude and implementagreements with foreign states and regions and relevant international organisations in theappropriate fields, including the economic, trade, financial and monetary, shipping,communications, tourism, cultural, science and technology, and sports fields."


10. The proposed Agreements, alongside other TIEAs which Australia has signed, are animportant tool in Australia's efforts to combat offshore tax evasion. The proposedAgreements provide for the effective exchange of information between Australia andLiechtenstein, Australia and Costa Rica, Australia and Macao and Australia and Liberia,which will promote fairness and enhance Australia's ability to administer and enforce itsdomestic tax laws.

11. The proposed Agreements are part of Australia's ongoing commitment to the OECD'swork on eliminating harmful tax practices that contribute to international tax avoidance andevasion. Australia has taken a leadership role in this work and is currently the Chair of theGlobal Forum on Transparency and Exchange ofInformation for Tax Purposes, which has amembership of more than 100 jurisdictions.

12. Since 2002, more than 100 jurisdictions have publicly committed to theimplementation of OECD standards of transparency and information exchange for taxpurposes, which have been endorsed by both the United Nations and the G-20. Thesestandards, when implemented, help to ensure the availability of information needed by taxauthorities to determine a taxpayer's correct tax liability. TIEAs are the key bilateral meansthat facilitate the provision of such information by low-tax jurisdictions.

13. In April 2002, the OECD released a model TIEA to facilitate negotiations betweenOECD member countries and committed jurisdictions. In October 2003, the then AustralianTreasurer approved an Australian model TIEA which is closely aligned to the OECD model.The Australian model TIEA was subsequently approved by the current AustralianGovernment. The proposed Agreements with Liechtenstein, Costa Rica, Macao and Liberiaessentially follow the format of the Australian model TIEA.

14. Data held by the Australian Transaction Reports and Analysis Centre (AUSTRAC)indicates a relatively small flow of funds between Australia and Costa Rica and betweenAustralia and Liberia. AUSTRAC data indicates a significant flow of funds betweenAustralia and Liechtenstein and between Australia and Macao. While most financial flows toand from low-tax jurisdictions are legitimate, the legal frameworks and systems that makelow-tax jurisdictions attractive for legitimate purposes may also be used in arrangementsdesigned to evade paying tax elsewhere. In particular, the use of secrecy laws to concealassets and income that are subject to Australian tax is of concern to Australia.

15. It is in Australia's interest to continue to develop its network of TIEAs with low-taxjurisdictions. The proposed Agreements, along with existing and future TIEAs, will make itharder for taxpayers to avoid or evade Australian tax and discourage those taxpayers fromparticipating in illegitimate tax arrangements by increasing the probability of detection. Thiswill help Australia protect its revenue base and improve the integrity of the tax system whileenhancing the reputations of Liechtenstein, Costa Rica, Macao and Liberia as locations forlegitimate business activity.

16. The commitment by Liechtenstein, Costa Rica, Macao and Liberia to implement theproposed Agreements is a positive step in their respective relationships with Australia. TheOECD has identified Liechtenstein, Costa Rica, Macao and Liberia as jurisdictions that havecommitted to and substantially implemented the internationally agreed standard for theexchange of information relating to tax.

Obligations

17. Article 5(1) of the proposed Agreements obliges the competent authorities of theContracting Parties to provide, on request, information that is foreseeably relevant to theadministration and enforcement of the other Party's domestic tax laws, including thecollection of taxes and the investigation or prosecution of tax matters. (The proposedCosta Rica Agreement uses the term 'Contracting States' instead of 'Contracting Parties', butotherwise imposes the same obligations.) A request for information must be in writing andcontain the information set out in Article 5(5) of the proposed Agreements. This obligationapplies irrespective of whether the conduct being investigated would constitute a crime underthe domestic law of the Requested Party (or State) if it occurred in the territory of that Party(or State).

18. Article 5(2) of the proposed Agreements provides that where the information in thepossession of the Requested Party (or State) is insufficient to enable compliance with arequest, the Requested Party (or State) must use its information gathering powers to obtainand provide the information, even if it is not needed for the Requested Party's (or State's)domestic tax purposes. This is consistent with Article 26 (Exchange of Information) of theOECD Model Convention with Respect to Taxes on Income and on Capital, which has beenincorporated into Australia's tax treaty policy.

19. Article 5(3) of the proposed Agreements requires the provision of information in theform of depositions of witnesses and authenticated copies of original records, to the extentallowable under the laws of the Requested Party (or State). This is intended to assist theApplicant Party in the proposed Liberia and Liechtenstein Agreements, Applicant State in theproposed Costa Rica Agreement and Requesting Party in the proposed Macao Agreement tosatisfy evidentiary requirements in domestic tax proceedings.

20. Article 5(4) of the proposed Agreements obliges each Contracting Party (or State) toensure its competent authority has the authority to obtain and provide information held bybanks, other financial institutions and any person acting in an agency or fiduciary capacity, aswell as information regarding ownership of companies, partnerships, trusts, foundations,'Anstalten' and other persons. The Commissioner of Taxation currently has the necessarylegal authority to meet Australia's obligations under Article 5(4).

21. Article 5(6) of the proposed Agreements obliges the Contracting Parties (or States) toprovide the requested information as promptly as possible. Additionally, the proposedCosta Rica, Macao and Liberia Agreements oblige the Contracting Parties (or States) toacknowledge receipt of requests for information.

22. Article 6 of the proposed Agreements provides that one Contracting Party (or State)may, on request, permit interviews with individuals and the examination of records within itsjurisdiction by officials of the other Party, with the written consent of the persons concerned.

23. Article 7 of the proposed Agreements provides various grounds for the refusal ofrequests, including where requests are not in conformity with the respective proposedAgreement or if the Applicant Party or State (in the proposed Liechtenstein, Costa Rica and

Liberia Agreements), or Requesting State (in the proposed Macao Agreement) would beunable to obtain the requested information under its own laws.

24. Article 8 of the proposed Agreements obliges the Contracting Parties (or States) tokeep information received under each proposed Agreement confidential. Such informationmay be disclosed only to persons or authorities concerned with the administration orenforcement of taxation covered by the proposed Agreement and may only be used for suchpurposes, although this may include public court proceedings or in judicial decisions. Theexpress written consent of the competent authority of the Requested Party (or State) isrequired for the disclosure of the requested information to any other person, entity, authorityor jurisdiction. Additionally, the proposed Liechtenstein Agreement provides that personaldata may be transmitted to the extent necessary for carrying out provisions of the proposedAgreement and emphasises that information received by the Requested Party in conjunctionwith a request for assistance under the proposed Agreement is to be treated as confidential.

25. Article 9 of the proposed Agreements provides that the Requested Party (or State) willbear ordinary costs associated with responding to requests for information. Extraordinarycosts are to be borne by the Applicant Party (or State) or the Requesting Party in the proposedMacao Agreement, unless the Contracting Parties (or States) otherwise agree. As discussedin paragraph 30 below, the Australian Taxation Office (ATO) and the relevant competentauthorities for each of the jurisdictions have negotiated standing arrangements for costs.

26. Article 12 of the proposed Macao Agreement, Article 11 of the proposed Costa Ricaand Liberia Agreements and Article 10 of the proposed Liechtenstein Agreement require theContracting Parties (or States) to jointly endeavour to resolve difficulties or doubtsconcerning the interpretation or application of the proposed Agreement and provides that theymay also decide upon other forms of dispute resolution.

Implementation

27. Australia is able to fulfil its obligations under the proposed Agreements under existinglegislation, specifically, section 23 of the International Tax Agreements Act 1953. WhileArticle 10 of the proposed Costa Rica,. Liberia and the Macao Agreements requires theContracting Parties to implement legislation necessary to give effect to the proposedAgreements, no further legislation or regulation is required in order to implement theproposed Agreements for Australia. Liechtenstein has a number of existing TIEAs and isable to fulfil its obligations under the proposed Liechtenstein Agreement.

28. The implementation of the proposed Agreements will not affect the existing roles ofthe Commonwealth or the States and Territories in tax matters.

Costs

29. The proposed Agreements will have a small administrative and financial impact on theATO. As Liechtenstein, Costa Rica, Macao and Liberia are unlikely to routinely needAustralian information for their own tax purposes, it is likely that most requests forinformation will originate from Australia. Some resources may need to be allocated by theATO to provide technical assistance to the jurisdictions in relation to their exchange ofinformation procedures.

30. Pursuant to Article 9 of the proposed Agreements, the ATO has negotiatedmemoranda of understanding with the competent authorities of Liechtenstein, Costa Rica,

Macao and Liberia. Under these arrangements, certain costs associated with Australianrequests for information will be borne by the ATO. Examples of such costs, classified asextraordinary costs, include:

• reasonable fees charged by third parties for carrying out research;• reasonable fees charged by third parties for copying documents;• reasonable costs of engaging experts, interpreters or translators;• reasonable costs of conveying documents to the Requesting Party;• reasonable litigation costs of the Requested Party in relation to a specific request for

information; and• reasonable costs of obtaining depositions or testimony.

31. Australian residents are unlikely to incur significant compliance costs in relation tothe proposed Agreements. It is unlikely Australia will receive many requests for informationfrom any of the jurisdictions and consequently be required to collect information fromAustralian residents.

32. Overall, it is estimated that the administrative and financial impact of the proposedAgreements will be absorbed by the ATO's existing exchange of information programme,which currently administers similar arrangements (TIEAs and double-taxation agreements)with more than 70 countries. On a broader level, as the proposed Agreements are intended tohelp reduce tax avoidance and evasion by Australian taxpayers, it could result in thegeneration of additional revenue for Australia.


33. The Treasury has assessed the implementation of the proposed Agreements againstcriteria in the Best Practice Regulation Handbook and concluded that these regulatoryoptions have no/low impact on businesses and individuals or on the economy. The Office ofBest Practice Regulation has been consulted and confirms that Regulation Impact Statementsare not required.

Future treaty action

34. The proposed Agreements do not provide for amendments or for the negotiation offuture legally binding instruments. Pursuant to international law, in the absence of specificprocedures, the Parties may amend their respective proposed Agreement by mutual consent atany time. Any future amendments would be subject to Australia's domestic treaty-makingprocess, including tabling and consideration by the Joint Standing Committee on Treaties(JSCOT). Any such amendments to the proposed Agreements may be considered in line withAustralian policy for TIEA negotiations current at that time.


Liechtenstein

35. Article 12 of the proposed Liechtenstein Agreement provides that it shall continue ineffect indefinitely, but either of the Contracting Parties may, after the expiration of threeyears from the date of its entry into force, provide written notice of termination throughdiplomatic channels. Termination would take effect on the first day of the month following

the expiration of a period of three months after the date of receipt of the notice of terminationby the other Contracting Party. However, both Contracting Parties would remain bound bythe confidentiality obligations contained in Article 8. This ensures the continued protectionof information exchanged under the proposed Liechtenstein Agreement between the twoContracting Parties.

Costa Rica

36. Article 13 of the proposed Costa Rica Agreement provides that it shall continue ineffect indefinitely, but either of the Contracting States may, after the expiration of three yearsfrom the date of its entry into force, provide written notice of termination through diplomaticchannels. Termination would take effect on the first day of the month following theexpiration of a period of six months after the date of receipt of the notice of termination bythe other Contracting State. Both Contracting States would remain bound by theconfidentiality obligations contained in Article 8.

Macao

37. Article 14 of the proposed Macao Agreement provides that it shall remain in forceindefinitely, but either of the Contracting Parties may, after the expiration of five years fromthe date of its entry into force, provide written notice of termination through diplomaticchannels. Termination would take effect on the first day of the month following theexpiration ofa period of six months .after the date of receipt of the notice of termination bythe other Contracting Party. Both Contracting Parties would remain bound by theconfidentiality obligations contained in Article 8.

Liberia

38. Article 13 of the proposed Liberia Agreement provides that it shall continue in effectindefinitely, but either of the Contracting Parties may, after the expiration of three years fromthe date of its entry into force, provide written notice of termination through diplomaticchannels. Termination would take effect on the first day of the month following theexpiration of a period of six months after the date of receipt of the notice of termination bythe other Contracting Party. Both Contracting Parties would remain bound by theconfidentiality obligations contained in Article 8.

39. Termination of any of the proposed Agreements by Australia would be subject toAustralia's domestic treaty-making process, including tabling and consideration by JSCOT.

Contact details

International Tax and Treaties DivisionDepartment of the Treasury


Agreements between





the Government of Australia and the Government of the Macao Special AdministrativeRegion of the People's Republic of China


[2011] ATNIF 11



CONSULTATION

40. The proposed Agreements address only administrative matters, namely facilitating thefull exchange of information between tax authorities. Accordingly, the public was notconsulted.

41. The ATO was involved in the negotiation of the proposed Agreements and willadminister them. Given that the proposed Agreements align with the international standardon tax information exchange and with Australia's recent bilateral tax treaty practice, the ATOwas supportive of the proposed treaty actions.

42. In addition to the Assistant Treasurer, the Minister for Foreign Affairs, the Ministerfor Trade and the Prime Minister have approved the proposed treaty actions.

premier ofqueensland

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