The Resource The new tie-breaker-rule for companies according BEPS Action Point 6 : a (too) radical change?

The new tie-breaker-rule for companies according BEPS Action Point 6 : a (too) radical change?

Label
The new tie-breaker-rule for companies according BEPS Action Point 6 : a (too) radical change?
Title
The new tie-breaker-rule for companies according BEPS Action Point 6 : a (too) radical change?
Creator
Subject
Language
eng
Summary
This article investigates whether the general introduction of a Mutual Agreement Procedure (MAP) under Article 4 section 3 OECD Model through BEPS Action Point 6 is more capable of effectively and practically breaking the tie for dual resident companies than the former place of effective management criterion. Based on an empirical analysis of the tie-breaker-rule in treaty practice in more than 2,000 tax treaties concluded by the OECD Member and Partner States it is demonstrated that the place of effective management criterion is still predominant in treaty practice and that the application of a MAP under Article 4 section 3 OECD Model only slightly increased following the MLI implementation process. Furthermore, it is shown that the cautious implementation of the new tie-breaker-rule can be explained due to various procedural shortcomings of the MAP with respect to the core requirements that Article 4 section 3 OECD Model has to fulfil. Based on the empirical and theoretical assessment further suggestions for improvements to enhance the application of both, the MAP and place of effective management criterion, on a standalone basis, are provided. A combined application of both tie-breaker-rules within a two-step hierarchical test is presented as the preferred solution
Citation source
In: Intertax. - Alphen aan den Rijn. - Vol. 46 (2018), no. 10 ; p. 753-765
http://library.link/vocab/creatorName
  • Gerlach, C
  • Niemeyer, N
Geographic coverage
International
Language note
English
http://library.link/vocab/subjectName
  • tax treaty
  • MAP
  • tie-breaker rule
  • dual residence
  • place of effective management
  • BEPS Project (OECD)
Label
The new tie-breaker-rule for companies according BEPS Action Point 6 : a (too) radical change?
Instantiates
Publication
Label
The new tie-breaker-rule for companies according BEPS Action Point 6 : a (too) radical change?
Publication

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