Triangular Cases.
Fett, Emily.
Triangular Cases. - 1st ed. - 1 online resource (1059 pages) - IBFD Doctoral Series . - IBFD Doctoral Series .
Intro -- Title Page -- Copyright Page -- Abstract -- Acknowledgements -- Table of Contents -- Part I: Introduction -- Chapter 1: Introduction -- 1.1. Introduction -- 1.2. Background and outline of triangular cases -- 1.2.1. PE triangular cases -- 1.2.1.1. The residence state's obligation to provide relief -- 1.2.1.2. The PE state and the non-discrimination principle -- 1.2.1.3. Limitation of the source state's taxing rights -- 1.2.1.4. Underlying causes of the issues arising in PE triangular cases -- 1.2.1.5. Potential solutions -- 1.2.1.6. Extension of treaty benefits to PEs -- 1.2.2. Dual resident triangular cases -- 1.2.3. Reverse PE triangular cases -- 1.2.4. Reverse dual resident triangular cases -- 1.2.5. Variations on the basic triangular cases -- 1.3. Scope and assumptions -- 1.4. Conclusion -- Part II: PE Triangular Cases -- Chapter 2: PE Triangular Cases and Specific Categories of Income -- 2.1. Introduction -- 2.2. Tax treatment in the absence of income tax treaties -- 2.3. Applicable tax treaties -- 2.4. Passive income -- 2.4.1. Dividends -- 2.4.2. Interest -- 2.4.3. Royalties -- 2.5. Business profits -- 2.5.1. Sub-PE triangular cases -- 2.5.2. Business income arising from activities of artistes and sportsmen (article 17) -- 2.6. Income from immovable property -- 2.6.1. Income considered "business profits" under domestic law -- 2.6.1.1. Whether the income will be business profits for treaty purposes -- 2.6.1.2. Whether the income is "dealt with" in another article of the treaty -- 2.6.2. Income not considered business profits -- 2.6.3. Overview -- 2.6.4. Policy considerations -- 2.7. Income from shipping, inland waterways transport and air transport -- 2.8. Capital gains -- 2.8.1. Capital gains from the alienation of immovable property -- 2.8.2. Capital gains from the alienation of movable property of a PE. 2.8.3. Capital gains from the alienation of ships or aircraft operated in international traffic -- 2.8.4. Capital gains from the alienation of shares in a real estate company (and similar cases) -- 2.8.5. Capital gains from the alienation of other property -- 2.9. Other income -- 2.10. Conclusions -- Chapter 3: Double Taxation Relief in the Residence State -- 3.1. Introduction -- 3.1.1. Methods of relieving double taxation -- 3.2. Residence state's ability to fully relieve double taxation -- 3.2.1. Assessing the extent of unrelieved double taxation in multilateral situations -- 3.2.2. Factors relevant to both the credit and exemption methods -- 3.2.2.1. Relative tax rates -- 3.2.2.2. Relief in the PE state -- 3.2.3. Additional factors relevant where the residence state uses the credit method -- 3.2.3.1. Domestic credit limitations -- 3.2.3.2. Ability to carry forward (or back) excess credits -- 3.2.3.3. Impact of losses -- 3.2.4. Conclusion -- 3.3. Potential obligation to provide dual relief -- 3.3.1. Dutch case law -- 3.3.2. Relief provisions of the OECD Model -- 3.3.3. Interaction between tax treaties -- 3.3.4. Relief available under domestic law -- 3.3.4.1. Situations where there is a domestic exemption -- 3.3.4.2. Situations where domestic law provides for credit relief -- 3.3.4.3. Conclusions -- 3.3.5. Calculation of treaty credit relief by reference to domestic law -- 3.3.6. Minimum requirement set by treaty relief measures -- 3.3.7. Both treaties provide for the same method of relief -- 3.3.8. Overview -- 3.3.9. Potential solutions -- 3.4. Conclusions -- Chapter 4: The PE State and the Non-Discrimination Principle -- 4.1. Introduction -- 4.2. The need for relief in the PE state and potential sources of relief obligation -- 4.2.1. The need for relief in the PE state -- 4.2.2. Potential sources of relief obligation -- 4.2.2.1. Domestic law. 4.2.2.2. European law -- 4.2.2.3. The treaty between the PE state and the source state -- 4.2.2.4. The treaty between the residence state and the PE state -- 4.3. The PE non-discrimination principle and double taxation relief -- 4.3.1. Introduction to article 24(3) -- 4.3.2. Obligation to extend unilateral relief to PEs -- 4.3.3. Obligation to extend treaty relief to PEs -- 4.3.3.1. Preliminary analysis -- 4.3.3.2. Comparison entity's eligibility for treaty benefits -- 4.3.3.3. Arguments against extending treaty relief to PEs -- 4.3.3.4. Conclusions -- 4.3.4. Comparison entity's eligibility for treaty benefits in special circumstances -- 4.3.4.1. Partnerships -- 4.3.4.2. LOB provisions -- 4.3.5. Amount of credit relief -- 4.3.5.1. The first limitation: Tax imposed in the source state -- 4.3.5.2. The second limitation: Tax that could be imposed in the source state if the PE-S treaty applied -- 4.3.5.3. Inconsistency between the limitations -- 4.3.5.4. Appropriate limitation to apply -- 4.3.6. Relief in sub-PE triangular cases -- 4.3.7. Comparison between article 24(3) and non-discrimination principles of EU law -- 4.4. Conclusions -- Chapter 5: Limitation of the Source State's Taxing Rights -- 5.1. Introduction -- 5.2. Whether source state taxation should be subject to the conditions of the PE-S treaty -- 5.2.1. Potential impact of applying PE-S treaty conditions in the source state -- 5.2.2. Why states agree to restrictions on their taxing rights under treaties -- 5.2.2.1. To eliminate double taxation -- 5.2.2.2. To allocate taxing jurisdiction -- 5.2.2.3. To facilitate international trade and investment -- 5.2.2.4. To prevent tax evasion -- 5.2.2.5. The reciprocity principle -- 5.2.2.6. Conclusions -- 5.2.3. The role of the residence concept in tax treaties -- 5.2.3.1. The residence concept in early treaties. 5.2.3.2. Reasons for confining treaty benefits to residents -- 5.2.3.3. Difficulties in determining residence for treaty purposes -- 5.2.3.4. Declining factual basis for corporate residence -- 5.2.3.5. Source role of corporate taxation in an international context -- 5.2.3.6. Conclusions -- 5.2.4. The PE concept and the taxation of PEs -- 5.2.4.1. The existence of a PE -- 5.2.4.2. Taxation under domestic laws -- 5.2.4.3. Quasi-resident status of PEs under tax treaties -- 5.2.4.4. Importance of the differing legal nature of subsidiaries and PEs -- 5.2.4.5. Whether the existing PE threshold is appropriate for treaty eligibility -- 5.2.4.6. Conclusions -- 5.2.5. Separate entity approach to attributing profit to PEs -- 5.2.5.1. Historical development -- 5.2.5.2. The AOA -- 5.2.5.3. The AOA for financial institutions and financial assets -- 5.2.5.4. Implications of the AOA -- 5.2.6. Tax avoidance considerations -- 5.2.6.1. Treaty shopping: The current landscape -- 5.2.6.2. Potential for treaty shopping through PEs -- 5.2.7. Impact of EU law -- 5.3. Whether taxation in the source state should be subject to the conditions of the R-S treaty -- 5.3.1. Potential impact of not applying R-S treaty conditions in the source state -- 5.3.2. Conditions for availability of treaty benefits -- 5.3.3. Whether source state taxation should be subject to multiple treaty restrictions -- 5.3.4. Conclusions -- 5.4. Conclusions -- Chapter 6: Potential Solutions -- 6.1. Introduction -- 6.1.1. Overview of issues arising in PE triangular cases under the existing framework -- 6.1.1.1. Unrelieved double taxation -- 6.1.1.2. Applicable treaty conditions in the source state -- 6.1.1.3. Potential dual relief obligation in the residence state -- 6.2. Underlying issues and introduction to possible solutions -- 6.2.1. Overlap between treaty source rules. 6.2.2. Hybrid nature of the PE concept -- 6.2.3. Bilateral nature of tax treaties -- 6.3. Treat PEs more like resident persons for treaty purposes -- 6.4. Treat PE concept as a source concept and resolve overlap in sourcing rules -- 6.4.1. Preventing taxation in the PE state -- 6.4.1.1. Operation of provision preventing taxation in the PE state -- 6.4.1.2. Assessment of this potential solution -- 6.4.2. Preventing taxation in the source state -- 6.4.2.1. Operation of provision preventing taxation in the source state -- 6.4.2.2. Assessment of this potential solution -- 6.4.3. Conclusions -- 6.5. Multilateral treaties -- 6.5.1. Existing multilateral treaties -- 6.5.1.1. The Nordic Convention -- 6.5.1.2. The CARICOM Convention -- 6.5.1.3. The Andean Convention -- 6.5.1.4. The EU Parent-Subsidiary Directive -- 6.5.2. Possible multilateral treaty solutions -- 6.5.3. Advantages of a multilateral treaty -- 6.5.4. Practical limitations -- 6.6. Conclusions -- Chapter 7: Extending Treaty Benefits to PEs -- 7.1. Introduction -- 7.2. Overview of existing treaty provisions and proposals -- 7.2.1. The Belgium-France Income Tax Treaty (1964) -- 7.2.2. IFA Cahiers "The Taxation of Enterprises with Permanent Establishments Abroad" (1973) -- 7.2.3. The France-Italy Income and Capital Tax Treaty (1989) -- 7.2.4. The Ruding Report (1992) -- 7.2.5. The OECD Triangular Cases Report (1992) -- 7.2.6. Avery Jones' proposal: Provisions included in all three treaties (1999) -- 7.2.7. Zhai's proposal: Indirect treaty entitlement for PEs (2009) -- 7.2.8. Wheeler's proposal: "The Missing Keystone of Income Tax Treaties" (2011) -- 7.2.9. Instances where treaty benefits have been claimed on behalf of a PE -- 7.2.9.1. Commerzbank -- 7.2.9.2. Crown Forest Industries -- 7.2.10. Conclusions -- 7.3. Approaches to extending treaty benefits to PEs -- 7.3.1. Direct treaty entitlement. 7.3.2. Indirect treaty entitlement.
This book explores the application of bilateral income tax treaties in situations involving more than two countries, focusing on the fundamental concepts of treaty application.
9789087222314
Income tax-Law and legislation.
Double taxation-Treaties.
Electronic books.
K4505 .F488 2014
343.0526
Triangular Cases. - 1st ed. - 1 online resource (1059 pages) - IBFD Doctoral Series . - IBFD Doctoral Series .
Intro -- Title Page -- Copyright Page -- Abstract -- Acknowledgements -- Table of Contents -- Part I: Introduction -- Chapter 1: Introduction -- 1.1. Introduction -- 1.2. Background and outline of triangular cases -- 1.2.1. PE triangular cases -- 1.2.1.1. The residence state's obligation to provide relief -- 1.2.1.2. The PE state and the non-discrimination principle -- 1.2.1.3. Limitation of the source state's taxing rights -- 1.2.1.4. Underlying causes of the issues arising in PE triangular cases -- 1.2.1.5. Potential solutions -- 1.2.1.6. Extension of treaty benefits to PEs -- 1.2.2. Dual resident triangular cases -- 1.2.3. Reverse PE triangular cases -- 1.2.4. Reverse dual resident triangular cases -- 1.2.5. Variations on the basic triangular cases -- 1.3. Scope and assumptions -- 1.4. Conclusion -- Part II: PE Triangular Cases -- Chapter 2: PE Triangular Cases and Specific Categories of Income -- 2.1. Introduction -- 2.2. Tax treatment in the absence of income tax treaties -- 2.3. Applicable tax treaties -- 2.4. Passive income -- 2.4.1. Dividends -- 2.4.2. Interest -- 2.4.3. Royalties -- 2.5. Business profits -- 2.5.1. Sub-PE triangular cases -- 2.5.2. Business income arising from activities of artistes and sportsmen (article 17) -- 2.6. Income from immovable property -- 2.6.1. Income considered "business profits" under domestic law -- 2.6.1.1. Whether the income will be business profits for treaty purposes -- 2.6.1.2. Whether the income is "dealt with" in another article of the treaty -- 2.6.2. Income not considered business profits -- 2.6.3. Overview -- 2.6.4. Policy considerations -- 2.7. Income from shipping, inland waterways transport and air transport -- 2.8. Capital gains -- 2.8.1. Capital gains from the alienation of immovable property -- 2.8.2. Capital gains from the alienation of movable property of a PE. 2.8.3. Capital gains from the alienation of ships or aircraft operated in international traffic -- 2.8.4. Capital gains from the alienation of shares in a real estate company (and similar cases) -- 2.8.5. Capital gains from the alienation of other property -- 2.9. Other income -- 2.10. Conclusions -- Chapter 3: Double Taxation Relief in the Residence State -- 3.1. Introduction -- 3.1.1. Methods of relieving double taxation -- 3.2. Residence state's ability to fully relieve double taxation -- 3.2.1. Assessing the extent of unrelieved double taxation in multilateral situations -- 3.2.2. Factors relevant to both the credit and exemption methods -- 3.2.2.1. Relative tax rates -- 3.2.2.2. Relief in the PE state -- 3.2.3. Additional factors relevant where the residence state uses the credit method -- 3.2.3.1. Domestic credit limitations -- 3.2.3.2. Ability to carry forward (or back) excess credits -- 3.2.3.3. Impact of losses -- 3.2.4. Conclusion -- 3.3. Potential obligation to provide dual relief -- 3.3.1. Dutch case law -- 3.3.2. Relief provisions of the OECD Model -- 3.3.3. Interaction between tax treaties -- 3.3.4. Relief available under domestic law -- 3.3.4.1. Situations where there is a domestic exemption -- 3.3.4.2. Situations where domestic law provides for credit relief -- 3.3.4.3. Conclusions -- 3.3.5. Calculation of treaty credit relief by reference to domestic law -- 3.3.6. Minimum requirement set by treaty relief measures -- 3.3.7. Both treaties provide for the same method of relief -- 3.3.8. Overview -- 3.3.9. Potential solutions -- 3.4. Conclusions -- Chapter 4: The PE State and the Non-Discrimination Principle -- 4.1. Introduction -- 4.2. The need for relief in the PE state and potential sources of relief obligation -- 4.2.1. The need for relief in the PE state -- 4.2.2. Potential sources of relief obligation -- 4.2.2.1. Domestic law. 4.2.2.2. European law -- 4.2.2.3. The treaty between the PE state and the source state -- 4.2.2.4. The treaty between the residence state and the PE state -- 4.3. The PE non-discrimination principle and double taxation relief -- 4.3.1. Introduction to article 24(3) -- 4.3.2. Obligation to extend unilateral relief to PEs -- 4.3.3. Obligation to extend treaty relief to PEs -- 4.3.3.1. Preliminary analysis -- 4.3.3.2. Comparison entity's eligibility for treaty benefits -- 4.3.3.3. Arguments against extending treaty relief to PEs -- 4.3.3.4. Conclusions -- 4.3.4. Comparison entity's eligibility for treaty benefits in special circumstances -- 4.3.4.1. Partnerships -- 4.3.4.2. LOB provisions -- 4.3.5. Amount of credit relief -- 4.3.5.1. The first limitation: Tax imposed in the source state -- 4.3.5.2. The second limitation: Tax that could be imposed in the source state if the PE-S treaty applied -- 4.3.5.3. Inconsistency between the limitations -- 4.3.5.4. Appropriate limitation to apply -- 4.3.6. Relief in sub-PE triangular cases -- 4.3.7. Comparison between article 24(3) and non-discrimination principles of EU law -- 4.4. Conclusions -- Chapter 5: Limitation of the Source State's Taxing Rights -- 5.1. Introduction -- 5.2. Whether source state taxation should be subject to the conditions of the PE-S treaty -- 5.2.1. Potential impact of applying PE-S treaty conditions in the source state -- 5.2.2. Why states agree to restrictions on their taxing rights under treaties -- 5.2.2.1. To eliminate double taxation -- 5.2.2.2. To allocate taxing jurisdiction -- 5.2.2.3. To facilitate international trade and investment -- 5.2.2.4. To prevent tax evasion -- 5.2.2.5. The reciprocity principle -- 5.2.2.6. Conclusions -- 5.2.3. The role of the residence concept in tax treaties -- 5.2.3.1. The residence concept in early treaties. 5.2.3.2. Reasons for confining treaty benefits to residents -- 5.2.3.3. Difficulties in determining residence for treaty purposes -- 5.2.3.4. Declining factual basis for corporate residence -- 5.2.3.5. Source role of corporate taxation in an international context -- 5.2.3.6. Conclusions -- 5.2.4. The PE concept and the taxation of PEs -- 5.2.4.1. The existence of a PE -- 5.2.4.2. Taxation under domestic laws -- 5.2.4.3. Quasi-resident status of PEs under tax treaties -- 5.2.4.4. Importance of the differing legal nature of subsidiaries and PEs -- 5.2.4.5. Whether the existing PE threshold is appropriate for treaty eligibility -- 5.2.4.6. Conclusions -- 5.2.5. Separate entity approach to attributing profit to PEs -- 5.2.5.1. Historical development -- 5.2.5.2. The AOA -- 5.2.5.3. The AOA for financial institutions and financial assets -- 5.2.5.4. Implications of the AOA -- 5.2.6. Tax avoidance considerations -- 5.2.6.1. Treaty shopping: The current landscape -- 5.2.6.2. Potential for treaty shopping through PEs -- 5.2.7. Impact of EU law -- 5.3. Whether taxation in the source state should be subject to the conditions of the R-S treaty -- 5.3.1. Potential impact of not applying R-S treaty conditions in the source state -- 5.3.2. Conditions for availability of treaty benefits -- 5.3.3. Whether source state taxation should be subject to multiple treaty restrictions -- 5.3.4. Conclusions -- 5.4. Conclusions -- Chapter 6: Potential Solutions -- 6.1. Introduction -- 6.1.1. Overview of issues arising in PE triangular cases under the existing framework -- 6.1.1.1. Unrelieved double taxation -- 6.1.1.2. Applicable treaty conditions in the source state -- 6.1.1.3. Potential dual relief obligation in the residence state -- 6.2. Underlying issues and introduction to possible solutions -- 6.2.1. Overlap between treaty source rules. 6.2.2. Hybrid nature of the PE concept -- 6.2.3. Bilateral nature of tax treaties -- 6.3. Treat PEs more like resident persons for treaty purposes -- 6.4. Treat PE concept as a source concept and resolve overlap in sourcing rules -- 6.4.1. Preventing taxation in the PE state -- 6.4.1.1. Operation of provision preventing taxation in the PE state -- 6.4.1.2. Assessment of this potential solution -- 6.4.2. Preventing taxation in the source state -- 6.4.2.1. Operation of provision preventing taxation in the source state -- 6.4.2.2. Assessment of this potential solution -- 6.4.3. Conclusions -- 6.5. Multilateral treaties -- 6.5.1. Existing multilateral treaties -- 6.5.1.1. The Nordic Convention -- 6.5.1.2. The CARICOM Convention -- 6.5.1.3. The Andean Convention -- 6.5.1.4. The EU Parent-Subsidiary Directive -- 6.5.2. Possible multilateral treaty solutions -- 6.5.3. Advantages of a multilateral treaty -- 6.5.4. Practical limitations -- 6.6. Conclusions -- Chapter 7: Extending Treaty Benefits to PEs -- 7.1. Introduction -- 7.2. Overview of existing treaty provisions and proposals -- 7.2.1. The Belgium-France Income Tax Treaty (1964) -- 7.2.2. IFA Cahiers "The Taxation of Enterprises with Permanent Establishments Abroad" (1973) -- 7.2.3. The France-Italy Income and Capital Tax Treaty (1989) -- 7.2.4. The Ruding Report (1992) -- 7.2.5. The OECD Triangular Cases Report (1992) -- 7.2.6. Avery Jones' proposal: Provisions included in all three treaties (1999) -- 7.2.7. Zhai's proposal: Indirect treaty entitlement for PEs (2009) -- 7.2.8. Wheeler's proposal: "The Missing Keystone of Income Tax Treaties" (2011) -- 7.2.9. Instances where treaty benefits have been claimed on behalf of a PE -- 7.2.9.1. Commerzbank -- 7.2.9.2. Crown Forest Industries -- 7.2.10. Conclusions -- 7.3. Approaches to extending treaty benefits to PEs -- 7.3.1. Direct treaty entitlement. 7.3.2. Indirect treaty entitlement.
This book explores the application of bilateral income tax treaties in situations involving more than two countries, focusing on the fundamental concepts of treaty application.
9789087222314
Income tax-Law and legislation.
Double taxation-Treaties.
Electronic books.
K4505 .F488 2014
343.0526