VALUE OF PROJECT BEPS AND EU LAW: LIMITATION OF THE USE OF TAX TREATY BENEFITS
Authors:
Type:
Article
Pages:
from 0
to 0
Status:
Published
Received:
11.03.2016
Accepted:
11.03.2016
Published:
11.03.2016
Language:
Russian
Keywords:
OECD, EU, International Tax Treaty, limitation of benefits, Model Convention, Base erosion, qualified person, Contracting State, resident, treaty shopping, principal purpose test rule.
Abstract (English):
This article is devoted to legal relations arising from application of international tax treaties. The subject matter of this article is the norms of international and European Law and also soft law designed for preventing treaty abuse. The author considers Article 22 of the Model US Tax Convention. According to the current recommendations of OECD in the framework of BEPS Project regarding preventing the granting of treaty benefits in inappropriate circumstances, this provision should be considered as legal base for including in the Model OECD Tax Convention. The author focuses on the issue whether the provision regarding limitation of treaty benefits is consistent with EU law and the established practice of the European Court of Justice. The methodological foundation of this article includes general and specific approaches of scientific knowledge. During preparation of this article the author used methods of legal, structural, comparative and linguistic analysis. Moreover, the author applied the technical method for analysis of texts and wordings of model international conventions and international tax treaties. The author analyzed the provision of the Model US Convention regarding limitation of treaty benefits, because it is expected to be included in all international treaties, including in treaties of EU member states in the framework of BEPS Project, elaborated by the OECD.
This article is devoted to legal relations arising from application of international tax treaties. The subject matter of this article is the norms of international and European Law and also soft law designed for preventing treaty abuse. The author considers Article 22 of the Model US Tax Convention. According to the current recommendations of OECD in the framework of BEPS Project regarding preventing the granting of treaty benefits in inappropriate circumstances, this provision should be considered as legal base for including in the Model OECD Tax Convention. The author focuses on the issue whether the provision regarding limitation of treaty benefits is consistent with EU law and the established practice of the European Court of Justice. The methodological foundation of this article includes general and specific approaches of scientific knowledge. During preparation of this article the author used methods of legal, structural, comparative and linguistic analysis. Moreover, the author applied the technical method for analysis of texts and wordings of model international conventions and international tax treaties. The author analyzed the provision of the Model US Convention regarding limitation of treaty benefits, because it is expected to be included in all international treaties, including in treaties of EU member states in the framework of BEPS Project, elaborated by the OECD.
Keywords:
OECD, EU, International Tax Treaty, limitation of benefits, Model Convention, Base erosion, qualified person, Contracting State, resident, treaty shopping, principal purpose test rule.
OECD, EU, International Tax Treaty, limitation of benefits, Model Convention, Base erosion, qualified person, Contracting State, resident, treaty shopping, principal purpose test rule.
1. Baker P. Beneficial Ownership: After Indofood. GITC Review. 2007. Vol. VI. No. 1.
2. Bundgaard J., Winther-Sorensen N. Beneficial Ownership in International Financing Structures. Tax Notes Int’l. 2008. Vol. 50. No. 7.
3. Hansson L. The Compatibility of Limitation on Benefits Provisions in Tax Treaties with EC Law. EC Tax Law. 2006.
4. Kemmeren C. C. M. Where is EU Law in the OECD BEPS Discussion?. EC Tax Review. 2014. No. 4.
