The Australian Taxation Office released on 24 October 2008 Interpretative Decision ATO ID 2008/140, which provides that payments to a US resident for hire of substantial equipment are not subject to royalty withholding tax in Australia. Generally, such payments would be royalties under the domestic definition and therefore royalty withholding tax would apply to these payments. However, Art. 12(4) of the tax treaty between Australia and United States for use of equipment in the definition of royalties. It follows that the domestic definition should not apply. However, this conclusion was not made on the basis of Section 4 of the...