Limitation of benefits: treaty access barred when primary purpose is obtaining treaty benefits. The provision denies treaty benefits to a resident whose affairs were arranged so that the primary purpose was to obtain those benefits; legal entities lacking bona fide business activities are explicitly covered. It operates notwithstanding other treaty articles and serves to prevent treaty shopping by conditioning entitlement to benefits on substantive commercial activity and absence of primary intent to secure treaty advantages.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Limitation of benefits: treaty access barred when primary purpose is obtaining treaty benefits.
The provision denies treaty benefits to a resident whose affairs were arranged so that the primary purpose was to obtain those benefits; legal entities lacking bona fide business activities are explicitly covered. It operates notwithstanding other treaty articles and serves to prevent treaty shopping by conditioning entitlement to benefits on substantive commercial activity and absence of primary intent to secure treaty advantages.
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