Download or read book Tax Treaty Abuse and the Principal Purpose Test Part II written by David G. Duff and published by . This book was released on 2019 with total page 66 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Multilateral Convention to Implement Tax Treaty Measures to Prevent Base Erosion and Profit Shifting or Multilateral Instrument (MLI) has been described as “an historical turning point in the area of international taxation” which introduces a third layer of tax rules for the taxation of cross-border transactions in addition to domestic tax law and bilateral tax treaties. Of the many provisions of the MLI, the most important are the preamble text in Article 6(1) and the so-called principal purpose test (PPT) in Article 7(1), both of which have been adopted by all signatories to the MLI in order to satisfy the OECD's minimum standard on tax treaty abuse under BEPS Action 6. This two-part article considers the structure and potential application of the PPT in the context of pre-BEPS responses to perceived tax treaty abuses, the OECD's work on BEPS Action 6, and other provisions of the MLI including the preamble text in Article 6(1). The first part, in the previous issue of the Journal, reviewed pre-BEPS responses to perceived tax treaty abuses, providing necessary background and context for understanding BEPS Action 6, the MLI and the PPT. The second part, in this issue of the Journal, examines the PPT in light of this background and in the context of BEPS Action 6 and other provisions of the MLI, considering its relationship to other anti-avoidance doctrines, principles and rules, the various elements that comprise its basic structure, the kinds of transactions or arrangements to which it may be expected to apply, and the consequences of its application.
Download or read book Tax Treaty Abuse and the Pricipal Purpose Test Part 2 written by D.G. Duff and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The Multilateral Convention To Implement Tax Treaty Related Measures To Prevent Base Erosion and Profit Shifting came into force on 1 July 2018, and has been signed by more than 80 jurisdictions, including Canada. This multilateral instrument (MLI) has been described as "an historical turning point in the area of international taxation"; it introduces a third layer of rules for the taxation of cross-border transactions, in addition to domestic tax law and bilateral tax treaties. Of the many provisions of the MLI, the most important are the preamble text in article 6(1) and the general anti-avoidance provision - the so-called principal purpose test (PPT) - in article 7(1). Both of these provisions have been adopted by all signatories to the MLI in order to satisfy the OECD's minimum standard on tax treaty abuse under BEPS action 6. This two-part article considers the structure and potential application of the PPT in the context of pre-BEPS responses to perceived tax treaty abuses, the OECD's work on BEPS action 6, and other provisions of the MLI, including the preamble text in article 6(1). The first part of the article reviewed pre-BEPS responses to perceived tax treaty abuses, providing necessary background and context for understanding BEPS action 6, the MLI, and the PPT. This second part examines the PPT in light of this background and in the context of BEPS action 6 and other provisions of the MLI, considering the relationship of the PPT to other anti-avoidance doctrines, principles, and rules; the various elements that constitute its basic structure; the kinds of transactions or arrangements to which it may be expected to apply; and the consequences of its application.
Download or read book Tax Treaty Abuse and the Pricipal Purpose Test Part 1 written by D.G. Duff and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The Multilateral Convention To Implement Tax Treaty Related Measures To Prevent Base Erosion and Profit Shifting (MLI) came into force on 1 July 2018, and has been signed by more than 80 jurisdictions, including Canada. This MLI has been described as "a historical turning point in the area of international taxation"; it introduces a third layer of rules for the taxation of cross-border transactions, in addition to domestic tax law and bilateral tax treaties. Of the many provisions of the MLI, the most important are the preamble text in article 6(1) and the general anti-avoidance provision - the so-called principal purpose test (PPT) - in article 7(1). Both of these provisions have been adopted by all signatories to the MLI in order to satisfy the OECD's minimum standard on tax treaty abuse under BEPS Action 6. This two-part article considers the structure and potential application of the PPT in the context of pre-BEPS responses to perceived tax treaty abuses, the OECD's work on BEPS Action 6, and other provisions of the MLI, including the preamble text in article 6(1). This first part of the article reviews pre-BEPS responses to perceived tax treaty abuses, providing necessary background and context for understanding BEPS Action 6, the MLI, and the PPT. The second part examines the PPT in light of this background and in the context of BEPS Action 6 and other provisions of the MLI, considering the structure of this provision and the kinds of transactions or arrangements to which it might apply.
Download or read book MLI Made Easy written by Kuldeep Sharma and published by Kluwer Law International B.V.. This book was released on 2021-04-22 with total page 352 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI) provides an innovative approach to enable countries to swiftly modify their bilateral tax treaties in order to implement measures developed in the course of the Base Erosion and Profit Shifting (BEPS) Project. MLI, the first successfully concluded multilateral tax treaty, provides jurisdictions with the tools they need to ensure that profits are taxed where economic activities generating the profits are performed, while at the same time giving businesses greater certainty. MLI Made Easy makes it easier to get a complete grasp of this swift but complex modification process of tax treaties. This first and only self-contained book offers an unmatched article-by-article discussion of the MLI with an abundance of practical examples, diagrams, and flowcharts to make the information easier to understand and apply. Focusing on measures to combat tax evasion and abuse of tax treaties arising due to artificial avoidance of a permanent establishment status, hybrid mismatch arrangements, and other aspects of taxation, the book includes an in-depth discussion of the following and more: how specific gaps in existing bilateral tax treaties are addressed by the MLI; positions taken by selected jurisdictions and their impact on treaties; compatibility clauses, notification clauses, opting-in mechanisms, alternative provisions, and reservations; experiences in the course of implementation of the MLI; misconceptions and lingering doubts in respect of various substantive and procedural provisions of the MLI; interaction between the principal purpose test and simplified limitation on benefits; improving dispute resolution; and meaning of the phrases ‘on or after’, ‘other taxes’, and interpretational issues in entry into effect provisions. Adopted by a majority of jurisdictions worldwide, MLI preserves the tax sovereignty of its Parties and has been successful in overcoming barriers to the conclusion of a worldwide multilateral tax treaty. Because this easy-to-use book immensely facilitates understanding and application of the treaty measures developed in the course of the BEPS Project, it will be of immeasurable use to practitioners and other professionals engaging in international taxation, as well as to taxation authorities and interested academics in any part of the world.
Download or read book Tax Treaties and Abuse the Effectiveness of the Principal Purpose Test and Some of Its Shortcomings written by H.T.P.M. van den Hurk and published by . This book was released on 2021 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: In this article, the author sets out his views on the abuse of tax treaties and the effectiveness of the provisions contained in article 29(9) of the OECD Model regarding the principal purpose test (PPT), together with a consideration of some of the drawbacks of the PPT.
Download or read book The Principal Purpose Test PPT in BEPS Action 6 and the MLI Exploring Challenges Arising from Its Legal Implementation and Practical Application written by B. Kuźniacki and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This study contains a comprehensive, in-depth analysis of the principal purpose test (PPT) designed by the Organization for Economic Cooperation and Development (OECD) as part of the BEPS Action 6 Final Report, "Preventing the Granting of Treaty Benefits in Inappropriate Circumstances". Unsurprisingly, the PPT was adopted by all signatories to the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI), setting out a minimum standard in accordance with the Action 6 Final Report. Once the MLI is ratified by the legislatures of signatories, it will apply to more than 2,000 treaties. From this perspective, not only does the PPT constitute the most important anti-treaty abuse rule under the MLI, but it also secures a 100% match between the tax treaties of the signatories. All the same, one may ask whether the PPT will prevent treaty abuse with a sufficient degree of precision and without giving too much discretion to tax authorities. If this is not the case, the principles of legal certainty and legality of taxation may be jeopardized, and the June 2017 victory of the executives may turn into a failure at the level of legislatures and/or jurisprudence in the near future. This article represents an attempt to map this unexplored terrain by undertaking a comprehensive analysis of the PPT in Action 6 and in the MLI with a view to examining the potential challenges arising from its legal implementation and application in respect of the PPT. Where appropriate throughout the article, alternative solutions will be proposed.
Download or read book Schwarz on Tax Treaties written by Jonathan Schwarz and published by Kluwer Law International B.V.. This book was released on 2021-09-28 with total page 870 pages. Available in PDF, EPUB and Kindle. Book excerpt: Schwarz on Tax Treaties is the definitive analysis of tax treaties from United Kingdom and Irish perspectives and provides in-depth expert analysis of the interpretation and interaction of those treaty networks with the European Union and international law. The sixth edition significantly develops the earlier work with enhanced commentary and is updated to include the latest UK, Irish domestic and treaty developments, international and EU law, including: Covered Tax Agreements modified by the BEPS Multilateral Instrument; judicial decisions of Ireland, the UK and foreign courts on UK and Irish treaties; Digital Services Tax; treaty binding compulsory arbitration; Brexit and the EU-UK Trade and Cooperation Agreement; taxpayer rights in exchange of information; taxpayer rights in EU cross-border collection of taxes; attribution of profits to permanent establishments; and EU DAC 6 Disclosure of cross-border planning. Case law developments including: UK Supreme Court in Fowler v HMRC; Indian Supreme Court in Engineering Analysis Centre of Excellence Private Limited and Others v CIT; Australian Full Federal Court in Addy v CoT; French Supreme Administrative Court in Valueclick; English Court of Appeal in Irish Bank Resolution Corporation v HMRC; JJ Management and others v HMRC; United States Tax Court in Adams Challenge v CIR; UK Tax Tribunals in Royal Bank of Canada v HMRC; Lloyd-Webber v HMRC; Esso Exploration and Production v HMRC; Glencore v HMRC; McCabe v HMRC; Padfield v HMRC; Davies v HMRC; Uddin v HMRC; English High Court in Minera Las Bambas v Glencore; Kotton v First Tier Tribunal; and CJEU in N Luxembourg I, and others (the ‘Danish beneficial ownership cases’); État belge v Pantochim; College Pension Plan of British Columbia v Finanzamt München; HB v Istituto Nazionale della Previdenza Sociale. About the Author Jonathan Schwarz BA, LLB (Witwatersrand), LLM (UC Berkeley), FTII is an English Barrister at Temple Tax Chambers in London and is also a South African Advocate and a Canadian and Irish Barrister. His practice focuses on international tax disputes as counsel and as an expert and advises on solving cross-border tax problems. He is a Visiting Professor at the Faculty of Law, King’s College London University. He has been listed as a leading tax Barrister in both the Legal 500, for international corporate tax, and Chambers’ Guide to the Legal Profession, for international transactions and particular expertise in transfer pricing. He has been lauded in Who’s Who Legal, UK Bar for his ‘brilliant’ handling of cross-border tax problems. In Chambers Guide, he is identified as ‘the double tax guru’ with ‘extraordinary depth of knowledge and experience when it comes to tax treaty issues and is a creative thinker and a clear and meticulous writer’.
Download or read book Tax Treaty Entitlement written by Michael Lang and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book OECD G20 Base Erosion and Profit Shifting Project BEPS Project Explanatory Statement 2015 Final Reports written by OECD and published by OECD Publishing. This book was released on 2016-08-26 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: Addressing base erosion and profit shifting is a key priority of governments around the globe. This Explanatory Statement offers an overview of the BEPS Project and outcomes.
Download or read book Implementation in Practice of the Principal Purpose Test in the Multilateral Convention written by M.L. Gomes and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This article discusses the implementation, operation and application of Article 7(1) of the 'Multilateral Convention', which contains provisions related to the prevention of treaty abuse, including treaty shopping, that correspond to changes proposed in the Base Erosion and Profit Shifting (BEPS) Action 6 Final Report. The wording of the comparable Covered Tax Agreements between the United Kingdom and China, India, Russia and South Africa, vis-à-vis the wording of Article 7(1) of the Multilateral Instrument (MLI), is analysed, where 'purpose provisions' are included with respect to specific benefits, generally royalties, interests and dividends, although there is no "catch-all provision". The provisions in these double taxation agreements might be replaced by the 'Principal Purpose Test' provision of Article 7(1). Nonetheless, mismatched choices and unpredictable asymmetries in practice will arise, resulting in further inconsistencies and complexities that may cause uncertainty about which tax treaty wording is of value. To overcome these issues, the compatibility clause in Article 7(2) of the MLI will come into play, supplemented by the lex posterior principle of the Vienna Convention on the Law of Treaties (VCLT).
Download or read book International Tax Policy and Double Tax Treaties written by Kevin Holmes and published by IBFD. This book was released on 2007 with total page 433 pages. Available in PDF, EPUB and Kindle. Book excerpt: Explains the concepts that underlie international tax law and double tax treaties and provides an insight into how international tax policy, law and practice operate to ultimately impose tax on international business and investment.
Download or read book Introduction to the Law of Double Taxation Conventions written by Michael Lang and published by Linde Verlag GmbH. This book was released on 2021-04-01 with total page 266 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Law of Double Taxation Conventions Cross-border activities or transactions may trigger tax liability in two or more jurisdictions. In order to mitigate the financial burden resulting from these situations, States have entered into numerous double taxation conventions, which provide for rules that allocate the taxing rights between the contracting states. This handbook aims at providing an introduction to the law of double taxation conventions. It is designed for students – irrespective of their national background, but the author believes that it will also be of great help for tax experts who wish to know more about double taxation conventions, as well as for international law experts who wish to understand more about tax law. The handbook does not consider one jurisdiction in particular but rather takes examples from a wide range of different countries and their jurisdictions. It includes an overview of the problem of double taxation, the state practice in the conclusion of double tax conventions and their effects, the interpretation of double taxation conventions and treaty abuse. Furthermore, this updated handbook takes new developments into account occurred since the last edition of the book from 2013, in particular also the changes through OECD’s BEPS project and the Multilateral Instrument. It deals with the latest versions of the OECD Model Tax Conventions on Income and on Capital and the UN Model Double Taxation Convention between Developed and Developing Countries, both published in 2017, as well as the latest version of the OECD Model Double Taxation Convention on Estates and Inheritances and on Gifts.
Download or read book Does Principal Purpose Test Achieve the Result of Preventing Inappropriate Use of Treaty when it is Applied to Existing Case Law written by J. Sanctis and published by . This book was released on 2019 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt: The line between tax avoidance and tax evasion is indistinct. The classification of a transaction makes the difference between full taxation and reduced/ non-taxation. How this matches a treaty and how this is interpreted by tax authorities and courts makes it problematic. The issue of treaty abuse has its roots from the start of tax and the OECD/G20 Base Erosion and Profit Shifting (BEPS) Action Plans tries to close this gap. A proposed solution is the principal purpose test (PPT). This thesis examines whether the PPT is a solution. It looks at the players - countries/states and improper users of treaties. It explains the PPT and analyses the effect of the PPT with reference to case law.
Download or read book Double Taxation and the League of Nations written by Sunita Jogarajan and published by Cambridge University Press. This book was released on 2018-05-10 with total page 425 pages. Available in PDF, EPUB and Kindle. Book excerpt: Modern-day tax treaties have their foundations in one of the three Model Tax Treaties developed by the League of Nations in 1928. Using previously unexplored archival material, Sunita Jogarajan provides the first in-depth examination of the development of the League's Models. This new research provides insights into questions such as the importance of double taxation versus tax evasion; the preference for source-taxation versus residence-taxation; the influence of theory and practice on the League's work; the development of bilateral rather than multilateral treaties; the influence of developing countries on the League's work; the role of Commentary in interpreting model tax treaties; and the influential factors and key individuals involved. A better understanding of the development of the original models will inform and help guide interpretation and reform of modern-day tax treaties. Additionally, this book will be of interest to scholars of international relations and the development of law at international organisations.
Download or read book The DNA of the Principal Purpose Test in the Multilateral Instrument written by M.L. Gomes and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This article provides a comprehensive analysis of the framework of the principal purpose test (PPT) included in the Multilateral Convention (MLI) designed by the OECD as part of the Base Erosion and Profit Shifting (BEPS) Action 6 Final Report, "Preventing the Granting of Treaty Benefits in Inappropriate Circumstances", included in the BEPS Project. This article maps the primary and secondary elements generally used in a general antiavoidance rule (GAAR) to check the feasibility of these concepts in the PPT. Potential weaknesses are pointed out, as well as challenges for its legal implementation, application and interpretation. The article assesses the feasibility of the main features of the PPT as a general anti-treaty avoidance rule (GATAR) to be included in the tax treaties of the states and jurisdictions that joined the MLI. From this perspective, whether the PPT will prevent treaty abuse, treaty avoidance or aggressive tax planning without creating uncertainty and shifting too much discretionary power to tax administrations is one of the issues. Ultimately, the strengths of this provision will depend on the legislatures and courts in the near future.
Download or read book Model Rules of Professional Conduct written by American Bar Association. House of Delegates and published by American Bar Association. This book was released on 2007 with total page 216 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Model Rules of Professional Conduct provides an up-to-date resource for information on legal ethics. Federal, state and local courts in all jurisdictions look to the Rules for guidance in solving lawyer malpractice cases, disciplinary actions, disqualification issues, sanctions questions and much more. In this volume, black-letter Rules of Professional Conduct are followed by numbered Comments that explain each Rule's purpose and provide suggestions for its practical application. The Rules will help you identify proper conduct in a variety of given situations, review those instances where discretionary action is possible, and define the nature of the relationship between you and your clients, colleagues and the courts.
Download or read book Harmful Tax Competition An Emerging Global Issue written by OECD and published by OECD Publishing. This book was released on 1998-05-19 with total page 82 pages. Available in PDF, EPUB and Kindle. Book excerpt: Tax competition in the form of harmful tax practices can distort trade and investment patterns, erode national tax bases and shift part of the tax burden onto less mobile tax bases. The Report emphasises that governments must intensify their cooperative actions to curb harmful tax practices.
