Skip to main content Accessibility help
×
Hostname: page-component-8448b6f56d-xtgtn Total loading time: 0 Render date: 2024-04-19T23:56:34.423Z Has data issue: false hasContentIssue false

5 - The Limited Scope of Treaties

Published online by Cambridge University Press:  29 February 2020

Peter Harris
Affiliation:
University of Cambridge
Get access

Summary

Considers the limited scope of tax treaties (i.e., things that tax treaties do not cover). Initially continues in a bilateral scenario investigating mismatches between source and residence countries regarding the fundamental features of payments. These may cause income to disappear or be recognised twice. Particularly considers hybrid entities, hybrid financial instruments, corresponding adjustments and secondary adjustments, as well as BEPS recommendations regarding hybrid mismatch arrangements. The second heading discusses limits inherent in the bilateral nature of tax treaties, particularly when three or more countries are involved (triangular situations). Tax treaties seek to resolve issues of source and residence in bilateral situations. Triangular situations can produce a mismatch of source of income or mismatch of residence of entities. Dual source of income and dual residence are discussed. Finally, re-sourcing and re-characterisation using intermediaries in third countries is considered. Two issues here are use of tax havens and treaty shopping, which are considered from the perspectives of intermediate, source and residence countries. Discusses rules on beneficial ownership, limitation of benefits, most favoured nation and the principal purpose test in tax treaty GAARs, as well as offshore indirect transfers. Responses under the BEPS project are compared to expanding EU rules and case law.

Type
Chapter
Information
Publisher: Cambridge University Press
Print publication year: 2020

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Save book to Kindle

To save this book to your Kindle, first ensure coreplatform@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×