However, there is an exception for team members who play in "league competitions." Excluded from the application of Article 17, paragraph 2, paragraph 2 of paragraph 2 of Article 17 of the DBA are income from personal activities from personal activities from recognised teams that regularly participate in a league competition organized and organised in both States Parties, but which are not related to performances as members of a national representation of one of the two States parties. In such cases, the article on corporate profits or employment income applies. As a result, New Zealand residents are generally exempt from Australian tax when it comes to income related to their activity as members of these teams. However, if the athlete concerned has a stable establishment in Australia or if the conditions under section 14, paragraph 2, apply, Australia may tax that income. 5.30 Although the existing tax treaty has provided good protection against double taxation and the prevention of tax evasion since its in force, it is obsolete and no longer adequately reflects the positions desired by both partners, given the close economic relations between Australia and New Zealand and the desire of both countries to further improve those relations. The DBA also applies to taxpayers from third countries, as the non-discrimination section applies to nationals of Australia or New Zealand. In addition, the mutual agreement procedure, information exchange articles and tax debt collection assistance articles apply when third countries are residents of tax territory that are nationals of Australia or New Zealand. Provides access to arbitration in the absence of mutual agreement on factual issues within two years. "With regard to the provision which allows the competent authorities to consult, in cases not provided for by the Convention, on the elimination of double taxation, it should be considered that the competent authorities do not have additional powers beyond their usual legal powers." 2.318 Paragraph 3 of this article ensures that double taxation is reduced in cases where, under Article 1, paragraph 2, the same income is taxed in the hands of different persons in Australia and New Zealand. This can happen when both countries allocate income to different people for tax purposes; z.B. when one country treats the receiving unit as a tax and taxes the income collected at the enterprise level, while the other country processes the same income as that obtained by the unit participants and controls that the income is in the hands of the participants.
Suppose the country of origin treats a partnership as a business and a partner`s country of residence treats it as fiscally transparent. In these cases, this paragraph obliges the country of residence of the partners to reduce the double taxation of taxes levied by the source country on these incomes, in accordance with Article 23.