The Resource Hybrid foreign entities, uncertain domestic categories : treaty interpretation beyond familiar boundaries

Hybrid foreign entities, uncertain domestic categories : treaty interpretation beyond familiar boundaries

Label
Hybrid foreign entities, uncertain domestic categories : treaty interpretation beyond familiar boundaries
Title
Hybrid foreign entities, uncertain domestic categories : treaty interpretation beyond familiar boundaries
Creator
Subject
Language
eng
Summary
Entities formed under foreign law that do not closely resemble entities formed under domestic law present challenges to the application of tax treaty provisions. Some of these challenges arise from uncertainty as to how to apply concepts found in domestic tax law and tax treaties to entities having legal characteristics that do not fully correspond to those of domestic entities. This article brings insights from the philosophy of language to bear upon the process of applying domestic tax concepts, such as "company", "partnership", "residence", etc., to foreign hybrid entities. While discussing entity classification, the article does not prescribe any particular method for classifying foreign entities for tax purposes; instead, it considers how legal language can allow the categories found in Canada's tax treaties to adapt to foreign entities, even when these entities exhibit unusual characteristics. The author suggests that certain insights from the philosophy of language provide helpful tools for understanding how tax treaty provisions can be applied in coherently addressing foreign hybrid entities within the framework of the domestic jurisdiction's tax system. These philosophical conceptions explain the application of general linguistic categories to borderline/novel phenomena as a recognition of a "family resemblance" rather than a discovery of essential characteristics. They also can assist in thinking about whether the income, loss, or gain realized by a particular hybrid entity should be entitled to treaty relief, without in all cases first classifying the entity using domestic concepts such as "corporation" or "partnership". The value of these ideas is explored in a close reading of three cases involving hybrids: Memec, Swift, and TD Securities LLC. To varying degrees, these cases subordinate the role of entity classification in treaty interpretation to a purposive analysis that takes into account the particular treaty context and the objective of achieving a fair allocation of taxing jurisdiction
Citation source
In: Canadian tax journal = Revue fiscale canadienne. - Toronto. - Vol. 59 (2011),
http://library.link/vocab/creatorName
Milet, M
Geographic coverage
North America
Language note
English
http://library.link/vocab/subjectName
  • hybrid entity
  • entity classification
  • treaty interpretation
  • case law
Label
Hybrid foreign entities, uncertain domestic categories : treaty interpretation beyond familiar boundaries
Instantiates
Publication
Label
Hybrid foreign entities, uncertain domestic categories : treaty interpretation beyond familiar boundaries
Publication

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