ARTICLE 17

Entertainers

This Article provides certain exceptions to the rules otherwise governing income from personal services in the case of income derived by entertainers and athletes.

Paragraph 1 provides that a Contracting State may tax income derived by a resident of the other State from the performance of personal services in the first State as an entertainer or athlete if the gross receipts for such services, including expenses reimbursed or paid on his behalf, exceeds $10,000 (or the equivalent in Australian dollars) for the income year or taxable year

concerned. In that case the full amount may be taxed by the first State, subject to any deductions allowable under its laws. This rule overrides the provisions of Article 14 (Independent Personal Services) and 15 (Dependent Personal Services) by adding another basis for taxation at source. However, if the income does not exceed $10,000, whether the income may be taxed by the State where the services are performed is determined in accordance with Article 14 or 15, as the case may be.

Income derived from services rendered by producers, directors, technicians and others who are not artistes or athletes is taxable in accordance with Article 14 or 15, as appropriate.

Paragraph 2 corresponds to the provisions in the U.S. Model. Where income for services performed by an entertainer or athlete accrues not to the entertainer or athlete but to another person, it may be taxed in the State where the activities are performed, without regard to the provisions of the Convention concerning business profits or income from personal services, unless it is established that neither the entertainer or athlete nor any related person participates in those profits in any manner.