The Resource Court grants judicial review of denied U.S. tax treaty qualification ruling

Court grants judicial review of denied U.S. tax treaty qualification ruling

Label
Court grants judicial review of denied U.S. tax treaty qualification ruling
Title
Court grants judicial review of denied U.S. tax treaty qualification ruling
Creator
Subject
Language
  • eng
  • eng
Summary
Starr Int'l Co., Inc. v. United States is a case of first impression that may favourably impact a foreign resident seeking treaty benefits through a discretionary ruling under the Limitation on Benefits (LOB) article of an applicable U.S. income tax treaty. The LOB article is an anti-treaty-shopping provision that describes certain objective and subjective tests for establishing a resident's "nexus" with a treaty country and qualification for treaty benefits. When authorized by a U.S. treaty, the U.S. Competent Authority has the discretion to issue a ruling qualifying a foreign resident for treaty benefits (a treaty qualification ruling or "TQR") where such resident otherwise fails to meet the "mechanical" (i.e., objective) tests provided in the LOB article. A TQR is generally authorized if a foreign resident establishes that it was not treaty shopping. In Starr, the government challenged a foreign resident's right to seek judicial review of the U.S. Competent Authority's refusal to grant it a TQR. In a recently issued opinion, the court rejected the government's challenge, and the case now proceeds on the issue of whether the U.S. Competent Authority abused its discretion in denying the TQR
Citation source
In: Tax management international journal. - Arlington. - Vol. 44 (2015),
http://library.link/vocab/creatorName
Sparagna, G.T
Language note
English
http://library.link/vocab/subjectName
  • case law
  • tax treaty
  • LoB
  • nexus
  • treaty shopping
Label
Court grants judicial review of denied U.S. tax treaty qualification ruling
Link
https://library.ibfd.org/custom/web/SD_PDF/scans/2015/T/TAXMAINJ/vol.44/10_Court.zip
Publication
Note
20160126

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