Double taxation conventions and the use of conduit companies pdf

Oecd, double taxation conventions and the use of conduit companies, oecd council, 112786. International double taxation the belief that international double taxation is a barrier to the placement of investments abroad developed from the era of the league of nations see chapter 1 and is still prevalent today within the oecd. Double taxation conventions dtcs raise a plethora of interpretational questions for the practitioner and student of tax law. Companies and double taxation conventions and the use of conduit companies. Double taxation conventions and the use of conduit companies model tax convention on income and on capital 2014 full version this publication is the ninth edition of the full version of the oecd model tax convention on income and on capital. The meaning of beneficial ownership in tax treaties ius in. Affairs entitled double taxation conventions and the use of conduit companies1 concludes that a conduit company cannot normally be regarded as the beneficial owner if, though the formal owner, it has, as a practical matter, very narrow powers which render it, in relation to the income concerned. Many multinationals divert foreign direct investment fdi through conduit countries that have a favorable tax treaty network, to avoid host country withholding taxes. Nielsen book data summary this leading work now in looseleaf format clearly and thoroughly presents the principle of. The meaning of beneficial ownership in double tax agreements. Klaus vogel on double taxation conventions download ebook. Affairs entitled double taxation conventions and the. Basic international taxation second edition volume i. Conduit companies, beneficial ownership, and the test of.

International tax planning and prevention of abuse a study under domestic tax law, tax treaties and ec law in relation to conduit and base companies part one. Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income. Based on these two reports, the section on improper use of the conventionwas substantially extended in 1992 introduction to the model tax convention was amended to indicate that thecommittee on. The united states includes citizens and green card holders, wherever living, as subject to taxation, and therefore as residents for tax treaty purposes. D are, with minor edits, adopted from an earlier article in the series of which this present article is a part.

Double taxation relief dtr is a term normally applied where a country of residence acts to prevent or reduce the extent to which its residents are taxed more. Issues in interpretation of tax treaties ifacolombia. Kingdom of the netherlands signed at washington in 1948 and last amended in 1965. Download pdf klaus vogel on double taxation conventions. Another example is taxation of foreign investments in the country of origin and then again upon repatriation, although many countries have signed agreements to prevent. This full version contains the full text of the model tax convention as it read on 21 november 2017, including the articles, commentaries, nonmember economies positions, the recommendation of the oecd council, the historical notes and the background reports. A netherlands royalty conduit company is a company which intercedes between the owner of intellectual property rights e. Basically this does not mean that the national laws interpretation cannot assume relevance but that can find application in those cases in which it is compliant with the oecd commentary. Tax treaties and ec law in relation to conduit and base companies, amsterdam. Oecd report double taxation conventions and the use of conduit companies.

Sep 11, 2012 many multinationals divert foreign direct investment fdi through conduit countries that have a favorable tax treaty network, to avoid host country withholding taxes. Director, ctpa oecd 2, rue andre pascal 75775 paris france. The netherlands is the worlds largest conduit country. League of nations model bilateral convention for the prevention of the double taxation of income and property presented in london, march 1946 london draft 424 viii. Oecd, 1987 oecd, the taxation of income derived from the leasing of containers, trends in international taxationoecd, 1985 paris. Meaning and concept of treaty abuse in dta law 2 blumseiler eds, preventing treaty abuse i. This site is like a library, use search box in the widget to get ebook that you want.

Oecd double taxation conventions and the use of conduit companies paris oecd 1986 oecd draft double taxation convention on income and capital paris oecd 1963 oecd fifth meeting of the oecd forum on tax administration fta communiqu. Foundations routledge and kegan paul, london, 1977 at 18. Model tax convention on income and on capital 2017 full version double taxation conventions and the use of conduit companies this publication is the tenth edition of the full version of the oecd model tax convention on income and on capital. Double taxation is a tax principle referring to income taxes paid twice on the same source of income. One common example is taxation of earnings at the corporate level and then again at the shareholder dividend level. In oecd model tax convention on income and on capital 2014 full version. Russian arbitration case ruling contrary to taxpayers on. Wu international taxation research paper series no. Pdf the relationship between double taxation treaties and. The treaty shopping represents an insidious form of transnational abuse implemented through the undue use of bilateral conventions against double taxation on income. Avoidance and evasion, four related studies, double taxation conventions. University of michigan law school university of michigan. Klaus vogel on double taxation conventions download.

The meaning of beneficial ownership in tax treaties ius. Model tax convention on income and on capital 2010 full version r6. Oecd ilibrary double taxation conventions and the use of. Saurabh jain, john prebble and kristina bunting conduit companies, beneficial ownership, and the test of substantive. Double taxation conventions and the use of conduit companies. It had been motivated by political relations between the two countries. Double taxation conventions as part of its general strategy of addressing the crossborder tax problems facing individuals and business operating within the internal market, the commission is currently considering closely the possible conflicts between the ec treaty and the bilateral double taxation treaties that member states have concluded. Beneficial ownership, new tax code of ukraine, and risks for.

Double taxation conventions agreements preliminary hearing. First, people establishing companies destined to serve as conduit companies contrive to ensure that the conduit qualifies as resident in the jurisdiction of a treaty partner. Articles 10 to 12 of the oecd model deny the limitation of tax in the state of source on dividends, interest and royalties if the conduit company is not its beneficial owner. Double taxation conventions and the use of base companies double taxation conventions and the use of conduit companies. In this first part of the study, a general description of the tax planning techniques. Use of conduit companies1 concludes that a conduit company cannot normally be. This site is powered by keepeek 360, dam for business.

Double taxation conventions and the use of base companies, oecd council, 112786. Double taxation conventions and the use of conduit. Chapter 2 international double taxation, tax evasion and. An encyclopedic treatise on dtcs, klaus vogel on double taxation conventions is a guide to all legal issues dtcs raise and includes information on worldwide case law and commentators views. Double taxation conventions and the use of conduit companies model tax convention on income and on capital 2010 full version this publication is the eighth edition of the full version of the oecd model tax convention on income and on capital. From the inception of the first bilateral double tax convention dtc. This section was subsequently expanded in succeeding years after the oecd released reports such as. Committee of experts on international cooperation in tax. Model tax convention on income and on capital 2014 full version. The relationship between double taxation tr eaties and foreign direct inv estment study using aggregate data found there was a positiv e effect only for middle. A theory stating that an investment firm that passes all capital gains, interest and dividends on to its customersshareholders shouldnt be levied at the corporate level like.

A further example is provided by two particularly prevalent forms of improper use of the convention which improper uses of the convention are discussed in two reports from the committee on fiscal affairs entitled double taxation conventions and the use of base companies and double taxation conventions and the use of conduit companies. Model tax convention on income and on capital 2014 full version r6. Article 11 of the convention between russia and italy for the avoidance of double taxation with respect to taxes on income and capital and the prevention of fiscal evasion of 9 april 1996. As discussed below and in chapter 8, s corporations retain many though not all of the benefits of the corporate form without the cost of double taxation. University of michigan law school university of michigan law. International taxation of permanent establishments by. The tool to oppose this phenomenon is contained in almost all the treaties themselves and it is the socalled clause of the beneficial owner. This publication is the tenth edition of the full version of the oecd model tax convention on income and on capital. The netherlands is an extremely attractive jurisdiction in which to locate a royalty conduit companies. Pdf the meaning of beneficial ownership in double tax. Conceptual problems of beneficial ownership and the corporate. International tax planning and prevention of abuse a study.

Oecd, double taxation conventions and the use of conduit companies, international tax avoidance and evasion, four related studies, issues in international taxation series no. For these reasons, the report from the committee on fiscal affairs entitled double taxation conventions and the use of conduit companies concludes that a conduit company cannot normally be regarded as the. This double taxation has lead to a proliferation of agreements between countries in an attempt to prevent or reduce juridical double tax1 as an inhibitin g factor to economic activity. Click download or read online button to get klaus vogel on double taxation conventions book now. Conduit companies a conduit is an entity through which income, etc, is channelled between other entities, without itself generally having much. Tax avoidance and evasion, four related studies, double taxation conventions and the use of conduit companies, issues in international taxation series, no. The technical explanation is an official guide to the convention.

Uvadare digital academic repository beneficial ownership. Beneficial ownership, new tax code of ukraine, and risks. Developing a multilateral instrument to modify bilateral tax treaties, action 15 2015 final report. In the oecd report double taxation conventions and the use of conduit companies 89. Feb 28, 2012 2 oecd, double taxation conventions and the use of conduit companies oecd, paris, 1987, at paragraph 24i. Double taxation of income presented in mexico city, july 1943 mexico draft 416 7. Introduction double taxation is a taxation principle referring to income taxes that are paid twice on the same source of earned income.

Related studies, double taxation conventions and the use of conduit companies, issues in international taxation series, no. Double taxation conventions taxation and customs union. Double taxation conventions and the use of conduit companies, expansion of the notion bo. Taxation conventions and the use of conduit companies. It is intended to reduce the distortions double taxation or excessive taxation that can arise when two countries tax the same income, thereby enabling u.