The Interpretation of Tax Treaties in Relation to Domestic GAARs.
- 1st ed.
- 1 online resource (353 pages)
- IBFD Doctoral Series ; v.43 .
- IBFD Doctoral Series .
Cover -- IBFD Doctoral Series -- Title -- Copyright -- Preface -- Abbreviations -- Part I: Introduction -- Chapter 1: Setting the Scene -- 1.1. The relationship between domestic anti-avoidance rules and tax treaties -- Chapter 2: Possible Ways of Dealing with a Potential Conflict between Domestic Anti-Avoidance Rules and Tax Treaties -- 2.1. Resolving the issue -- Chapter 3: Developing the Research Question -- 3.1. Introduction -- 3.2. Circumventing domestic legislation without benefiting from a tax treaty -- 3.3. The benefit from the transaction/arrangement follows from the tax treaty -- 3.3.1. Use of domestic legislation as a tool to circumvent tax treaties -- 3.3.1.1. Introduction -- 3.3.1.2. A definition in the tax treaty covers the transaction -- 3.3.1.3. No definition covering the transaction in the tax treaty -- 3.3.2. Use of a tax treaty as a tool to circumvent domestic legislation -- 3.3.2.1. Treaty shopping -- 3.3.2.2. Directive shopping -- 3.3.2.3. Back-to-back transaction -- 3.3.2.4. Other distributive rule -- 3.4. The relevance of tax treaty GAARs and/or SAARs for the application of domestic anti-avoidance rules -- Chapter 4: Outline of the Book -- 4.1. Explanation -- Chapter 5: Legal Sources -- 5.1. Introduction -- 5.2. OECD Comm. -- 5.3. OECD reports and other reports -- 5.4. UN Comm. as a source of law in the interpretation of tax treaties based on the OECD MC -- 5.5. Domestic case law as a source of law -- Chapter 6: Delimitations -- 6.1. Tax evasion and sham -- 6.2. EU/EEA law -- 6.3. Analysis of domestic anti-avoidance rules -- 6.4. The concept of beneficial owner -- 6.5. Formalities -- Part II: OECD and UN Documents Relevant for the Applicability of Domestic Anti-Avoidance Rules in a Tax Treaty Situation -- Chapter 7: Introduction -- 7.1. The relationship between domestic anti-avoidance rules and tax treaties. Chapter 8: Historical Overview of OECD Comm. Art. 1 and UN Comm. Art. 1 -- 8.1. OECD Comm. Art. 1 -- 8.1.1. Abuse-of-treaty and domestic anti-avoidance rules -- 8.1.2. Object and purpose -- 8.1.3. Is there an inherent "guiding principle" in tax treaties? -- 8.1.4. 2003 OECD Comm. and BEPS -- 8.2. UN Comm. Art. 1 -- 8.3. Summary -- Chapter 9: Interpretation of the Treaty in its Context: The OECD Comm. and the UN Comm. -- 9.1. OECD Comm. Art. 1 views on domestic anti-avoidance rules -- 9.1.1. OECD Comm. Art. 1 - In general -- 9.1.2. OECD's use of the term "facts" - Various interpretations -- 9.1.3. The applicability of domestic anti-avoidance rules in relation to articles in the OECD MC other than OECD MC Art. 1 -- 9.1.4. The relevance of the OECD Comm. 2003 and 2017 revision for pre-2003 and pre-2017 treaties -- 9.1.4.1. Introduction -- 9.1.4.2. Changes in the Commentary relating to changes in the OECD MC -- 9.1.4.3. Changes in the Commentary without any changes in the OECD MC -- 9.2. UN Comm. Art. 1 views on domestic anti-avoidance rules -- 9.2.1. In general -- 9.2.2. Specific legislative anti-abuse rules found in domestic law -- 9.2.3. General legislative anti-abuse rules found in domestic law -- 9.2.4. Judicial doctrines that are part of domestic law -- 9.2.5. Specific anti-abuse rules found in tax treaties -- 9.2.6. General anti-abuse rules in tax treaties -- 9.2.7. The interpretation of tax treaty provisions -- 9.2.8. The applicability of domestic anti-avoidance rules in relation to other articles in the UN MC than UN MC Art. 1 -- 9.2.9. 2001 UN Comm. vs 2011 UN Comm. -- 9.3. Differences and similarities between the OECD Comm. and the UN Comm. regarding Art. 1 -- 9.4. Summary -- Chapter 10: Relevance of the Object and Purpose for the Interpretation of Tax Treaties -- 10.1. The legal background -- 10.2. The object and purpose of a tax treaty. 10.2.1. How to determine the object and purpose of a tax treaty? -- 10.2.2. More than one object and purpose of a tax treaty -- 10.2.3. GAARs applied in a tax treaty situation -- 10.2.3.1. Introduction -- 10.2.3.2. Increased risk of double taxation -- 10.2.3.3. Conflicting interests between the two main objects of the tax treaty -- 10.2.4. GAARs not applied in a tax treaty situation -- 10.2.5. GAARs applied but only to the extent that the domestic GAAR is in accordance with the guiding principle -- 10.3. Summary -- Chapter 11: The Guiding Principle in 2017 OECD Comm. Art. 1 Para. 61 -- 11.1. Introduction -- 11.2. First condition of the guiding principle - Main purpose of the transaction is to secure a favourable tax position which would not have been possible without the transaction -- 11.2.1. The purpose test -- 11.2.2. The purpose of the transaction -- 11.3. Second condition of the guiding principle - Obtaining reduced taxation on the transaction or arrangement is contrary to the object and purpose of the relevant provision of the treaty -- 11.3.1. Introduction -- 11.3.2. Do the distributive rules have their "own" object and purpose? -- 11.3.3. Is double non-taxation an object of the treaty? -- 11.3.4. Summary -- 11.4. Summary -- Chapter 12: Observations on the OECD Comm. -- 12.1. In general -- Part III: Domestic GAAR/SAAR but no Treaty GAAR/SAAR -- Chapter 13: Introduction -- 13.1. Alternative ways of dealing with the issue -- Chapter 14: Use of Domestic Legislation to Circumvent Domestic Legislation without Benefiting from a Tax Treaty -- 14.1. Introduction -- 14.2. Without benefiting from the tax treaty - Domestic anti-avoidance rules outside the scope of the treaty? -- 14.3. Summary -- Chapter 15: The Benefit from the Transaction/Arrangement Follows from the Tax Treaty -- 15.1. Introduction. 15.2. Use of domestic legislation as a tool to circumvent tax treaties -- 15.2.1. Introduction -- 15.2.2. A definition in the tax treaty that covers the transaction -- 15.2.3. No definition in the tax treaty itself -- 15.3. Use of a tax treaty as a tool to circumvent domestic legislation -- 15.3.1. Introduction -- 15.3.2. Redetermination of a counterparty of a transaction -- 15.3.2.1. In general -- 15.3.2.2. Outbound situations -- 15.3.2.3. Inbound situations -- 15.3.2.4. The relevance of active income in the intermediate company -- 15.3.3. Recharacterization of a transaction -- 15.3.4. Secondary adjustment -- 15.4. Summary -- Chapter 16: The Potential Conflict Resolved in the Tax Treaty -- 16.1. Introduction -- 16.2. Which anti-avoidance rules are covered by the treaty provision? -- 16.3. Written or unwritten rules? -- 16.4. Only explicit anti-avoidance rules or also rules with anti-avoidance effect? -- 16.5. Amendment of domestic anti-avoidance legislation -- 16.6. Restricted by the guiding principle -- 16.7. Unilateral regulation of the applicability - Reciprocity -- 16.8. The consequence when some tax treaties expressly allow domestic anti-avoidance rules while others do not -- 16.9. Summary -- Chapter 17: Both Contracting States Agree on the Anti-Avoidance Situation -- 17.1. Introduction -- Part IV: The Relevance of a GAAR/SAAR in the Tax Treaty -- Chapter 18: GAARs in the Tax Treaty -- 18.1. Introduction -- 18.2. Does a tax treaty GAAR exclude the applicability of a domestic GAAR? -- 18.3. Tax treaty GAAR in some tax treaties but not all -- 18.4. Tax treaty GAARs and the abuse-of-treaty doctrine -- 18.5. Summary -- Chapter 19: SAARs in the Tax Treaty -- 19.1. Introduction -- 19.2. Does a tax treaty SAAR exclude the applicability of a domestic SAAR (which applies in the same way as the tax treaty SAAR but is also broader)?. 19.3. Does a tax treaty SAAR exclude the applicability of a domestic GAAR? -- 19.4. Summary -- Part V: Conclusions and Final Remarks -- Chapter 20: Conclusions -- 20.1. Introduction -- 20.2. Use of domestic legislation to circumvent domestic legislation without benefiting from a tax treaty -- 20.3. The benefit from the transaction/arrangement follows from the tax treaty -- 20.3.1. Introduction -- 20.3.2. Use of domestic legislation as a tool to circumvent tax treaties -- 20.3.3. Use of a tax treaty as a tool to circumvent domestic legislation -- 20.4. The relevance of tax treaty GAARs and/or SAARs for the application of domestic anti-avoidance rules -- Chapter 21: Final Remarks -- 21.1. Recommendation to resolve the potential conflict between domestic anti-avoidance rules and tax treaties -- 21.1.1. Specific provision in the tax treaty regulating the relationship between domestic anti-avoidance rules and the tax treaty -- 21.1.2. Include a GAAR in the OECD MC and UN MC -- 21.1.3. Clear statement in the OECD Comm. -- Bibliography -- Other Titles in the IBFD Doctoral Series.
This book analyses the relationship between tax treaties and domestic anti-avoidance rules, particularly whether a treaty restricts the application of domestic general anti-avoidance rules (GAARs).