Introduction to the Law of Double Taxation Conventions
Michael Lang
Cite this publication as
Michael Lang, Introduction to the Law of Double Taxation Conventions (2013), Linde Verlag, 1210 Wien, ISBN: 9783709404546
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Description / Abstract
Cross-border activities or transactions may trigger tax liability in two or more jurisdictions. In order to mitigate the financial burden resulting from these situations, States have entered into numerous double taxation conventions, which provide for rules that allocate the taxing rights between the contracting states.
This handbook aims at providing an introduction to the law of double taxation conventions. It is designed for students – irrespective of their national background, but the author believes that it will also be of great help for tax experts who wish to know more about double taxation conventions, as well as for international law experts who wish to understand more about tax law. The handbook does not consider one jurisdiction in particular but rather takes examples from a wide range of different countries and their jurisdictions. It includes an overview of the problem of double taxation, the state practice in the conclusion of DTCs and their effects, the interpretation of double taxation conventions and treaty abuse. Furthermore, this updated handbook takes new developments into account: it deals with the new UN Model published in 2011, the latest version of article 7 of the OECD Model published in 2010, the on-going discussions relating to bank secrecy, the question of an effective exchange of information and the beneficial ownership concept. The latest versions of the OECD and UN Model Tax Conventions on Income and Capital as well as the OECD Model Convention with Respect to Estate, Inheritance and Gift Taxes are also included.
This handbook aims at providing an introduction to the law of double taxation conventions. It is designed for students – irrespective of their national background, but the author believes that it will also be of great help for tax experts who wish to know more about double taxation conventions, as well as for international law experts who wish to understand more about tax law. The handbook does not consider one jurisdiction in particular but rather takes examples from a wide range of different countries and their jurisdictions. It includes an overview of the problem of double taxation, the state practice in the conclusion of DTCs and their effects, the interpretation of double taxation conventions and treaty abuse. Furthermore, this updated handbook takes new developments into account: it deals with the new UN Model published in 2011, the latest version of article 7 of the OECD Model published in 2010, the on-going discussions relating to bank secrecy, the question of an effective exchange of information and the beneficial ownership concept. The latest versions of the OECD and UN Model Tax Conventions on Income and Capital as well as the OECD Model Convention with Respect to Estate, Inheritance and Gift Taxes are also included.
Table of content
- BEGINN
- Titelei
- Preface
- Preface
- Content
- List of abbreviations
- Literature cited in the text
- List of court cases
- 1. The problem of double taxation
- 1.1. Basics of international law
- 1.2. Circumstances giving rise to double taxation
- 1.3. Elimination of double taxation
- 2. State practice in the conclusion of DTCs
- 2.1. Conventions in international law
- 2.2. The importance of model conventions
- 2.3. The importance of the OECD Model
- 2.4. Bilateral peculiarities
- 3. The effects of DTCs
- 3.1. The allocation of taxing rights
- 3.2. The limiting effects of DTCs
- 3.3. The relationship to domestic law
- 4. The interpretation of double taxation conventions
- 4.1. Principles of interpretation in international law
- 4.2. The use of principles of interpretation stemming from international law with respect to DTCs
- 4.3. The importance of interpretation rules set out in DTCs
- 5. Treaty abuse
- 5.1. Denial of treaty benefits
- 5.2. The application of domestic anti-abuse principles?
- 5.3. The application of abuse rules of international law?
- 5.4. The importance of statements by the OECD Committee on Fiscal Affairs in the Commentary
- 5.5. DTC circumvention as a problem of interpretation
- 5.6. Special anti-abuse provisions
- 6. The structure and system of DTCs
- 6.1. Applying the convention
- 6.2. Persons covered
- 6.3. Taxes covered
- 6.4. Allocation rules
- 6.5. Methods for elimination of double taxation
- 7. Persons covered
- 7.1. Full tax liability as a prerequisite for the application of the DTCs
- 7.2. Treaty entitlement of corporate entities that are subject to limited tax liability
- 7.3. Treaty entitlement of partnerships and/or partners
- 7.4. Treaty entitlement and treaty abuse
- 7.5. Residence state in the case of dual residence
- 8. Taxes covered
- 8.1. Taxes on income
- 8.2. Taxes on capital
- 8.3. Comparability
- 8.4. Inheritance and gift taxes
- 9. Allocation rules
- 9.1. Income from immovable property
- 9.2. Business profits
- 9.3. Shipping, inland waterways transport and air transport
- 9.4. Dividends
- 9.5. Interest
- 9.6. Royalties
- 9.7. Capital gains
- 9.8. Independent personal services
- 9.9. Income from employment
- 9.10. Directors†™ fees
- 9.11. Artistes and sportsmen
- 9.12. Pensions
- 9.13. Government service
- 9.14. Students
- 9.15. Other Income
- 9.16. Taxation of capital
- 10. Methods for elimination of double taxation
- 10.1. The importance of the method article
- 10.2. Exemption method
- 10.3. Credit method
- 11. The implementation of treaty benefits in both contracting states
- 11.1. Source state
- 11.2. Residence state
- 11.3. The importance of the evidence of taxation in the other contracting state
- 12. The arm†™s length principle of Art. 9 OECD Model
- 13. Non-discrimination
- 13.1. Scope of application of non-discrimination rules
- 13.2. Non-discrimination on the grounds of nationality
- 13.3. Non-discrimination on the grounds of the PE of an enterprise
- 13.4. Non-discrimination according to Art. 24(4) OECD Model
- 13.5. Non-discrimination in connection with the shareholders/partners of a company
- 14. Mutual agreement procedure
- 14.1. Mutual agreement procedures
- 14.2. Consultation procedure
- 14.3. Arbitration procedure
- 15. Exchange of information
- 15.1. Scope of application of the exchange of information
- 15.2. Types of exchange of information
- 15.3. Limitations on the exchange of information
- 15.4. Tax secrecy, DTCs and tax information exchange agreements
- 15.5. Competence and obligation of secrecy
- 16. Assistance in the collection of taxes
- 17. Inheritance tax treaties
- 17.1. Structure
- 17.2. Scope of the convention
- 17.3. General definitions
- 17.4. Allocation of taxing rights
- 17.5. Special provisions
- Annexes
- OECD Model Convention with Respect toTaxes on Income and on Capital
- UN Model Double Taxation Convention between Developed and Developing Countries (2011 update)
- OECD Model Convention with Respect to Estate, Inheritance and Gift Taxes
- Index