Coverart for item
The Resource Preventing the granting of treaty benefits in inappropriate circumstances, Action 6 - 2015 final report

Preventing the granting of treaty benefits in inappropriate circumstances, Action 6 - 2015 final report

Label
Preventing the granting of treaty benefits in inappropriate circumstances, Action 6 - 2015 final report
Title
Preventing the granting of treaty benefits in inappropriate circumstances, Action 6 - 2015 final report
Subject
Language
eng
Summary
Action 6 of the OECD/G20 Base Erosion and Profit Shifting (BEPS) Project identifies treaty abuse, and in particular treaty shopping, as one of the most important sources of BEPS concerns. Taxpayers engaged in treaty shopping and other treaty abuse strategies undermine tax sovereignty by claiming treaty benefits in situations where these benefits were not intended to be granted, thereby depriving countries of tax revenues. Countries have therefore agreed to include anti-abuse provisions in their tax treaties, including a minimum standard to counter treaty shopping. They also agree that some flexibility in the implementation of the minimum standard is required as these provisions need to be adapted to each country's specificities and to the circumstances of the negotiation of bilateral conventions. Section A of this report includes new treaty anti-abuse rules that provide safeguards against the abuse of treaty provisions and offer a certain degree of flexibility regarding how to do so. These new treaty anti-abuse rules first address treaty shopping, which involves strategies through which a person who is not a resident of a State attempts to obtain benefits that a tax treaty concluded by that State grants to residents of that State, for example by establishing a letterbox company in that State. Section B of the report addresses the part of Action 6 that asked for clarification "that tax treaties are not intended to be used to generate double non-taxation". This clarification is provided through a reformulation of the title and preamble of the Model Tax Convention that will clearly state that the joint intention of the parties to a tax treaty is to eliminate double taxation without creating opportunities for tax evasion and avoidance, in particular through treaty shopping arrangements. Section C of the report addresses the third part of the work mandated by Action 6, which was "to identify the tax policy considerations that, in general, countries should consider before deciding to enter into a tax treaty with another country". The policy considerations described in that section should help countries explain their decisions not to enter into tax treaties with certain low or no-tax jurisdictions; these policy considerations will also be relevant for countries that need to consider whether they should modify (or, ultimately, terminate) a treaty previously concluded in the event that a change of circumstances (such as changes to the domestic law of a treaty partner) raises BEPS concerns related to that treaty
Geographic coverage
International
Index
no index present
Language note
English
Literary form
non fiction
Series statement
OECD/G20 Base Erosion and Profit Shifting Project
Series volume
Action 6: 2015 final report
http://library.link/vocab/subjectName
  • OECD
  • BEPS Project (OECD)
  • tax treaty
  • treaty abuse
  • treaty benefits
  • treaty shopping
  • LoB
Label
Preventing the granting of treaty benefits in inappropriate circumstances, Action 6 - 2015 final report
Instantiates
Publication
Extent
101 p.
Isbn
9789264241695
Isbn Type
(pdf)
Issn
  • 2313-2604 (print)
  • 2313-2612 (online)
Label
Preventing the granting of treaty benefits in inappropriate circumstances, Action 6 - 2015 final report
Publication
Extent
101 p.
Isbn
9789264241695
Isbn Type
(pdf)
Issn
  • 2313-2604 (print)
  • 2313-2612 (online)

Library Locations

    • IBFD Library AmsterdamBorrow it
      Rietlandpark 301, Amsterdam, 1019 DW, NL
      52.3736660 4.9336932
Processing Feedback ...