EXPLANATORY STATEMENT
INTERNATIONAL ORGANIZATIONS (PRIVILEGES AND IMMUNITIES) ACT 1963
BANK FOR INTERNATIONAL SETTLEMENTS (PRIVILEGES AND IMMUNITIES) REGULATIONS
Statutory Rules 1989 No. 284 issued by the authority of the Minister of State for Foreign Affairs and Trade
Section 13 of the International Organizations (Privileges and Immunities) Act 1963 (the Act) provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.
Section 5 of the Act provides that the regulations may declare an organisation to be an international organisation to which the Act applies.
Sub-paragraph 6(1)(a)(i) of the Act provides that the regulations may confer upon an organisation to which the Act applies juridical personality and such legal capacity as is necessary for the exercise of its powers and the performance of its functions. Sub-paragraph 6(1)(a)(ii) of the Act provides that the regulations may confer all or any of the privileges and immunities specified in the First Schedule to the Act on an international organisation.
The Regulations prescribe the Bank for International Settlements (the Bank) as an international organisation to which the Act applies, and to extend certain privileges and immunities to the Bank.
The Bank is an international financial institution established under the 1930 Hague Agreements on Reparations, to which Australia is a party. The Bank’s role now, however, is to promote international monetary co-operation, to provide special banking facilities to central banks, and to act as a “central banks’” bank. The Reserve Bank of Australia is a member bank of the Bank.
Almost all deposits held by the Bank are placements of official reserve assets by central banks and international organisations. The Bank intends to invest substantial sums in Australia, but has requested exemption from paying tax on income or gains that it derives from these investments. The Treasurer agrees that the exemption be granted.
Details of the Regulations are as follow:
Regulation 1 is a citation clause.
Regulation 2 is an interpretation provision.
Regulation 3 provides for the Bank to be declared to be an international organisation to which the Act applies.
Regulation 4 provides that the Bank will have juridical personality and legal capacities.
Regulation 5 exempts the Bank from paying tax on income or gains it derives from investments in Australia which would normally be either assessable income for the purposes of the Income Tax Assessment Act 1936, or subject to witholding tax under that Act.