Limitation of benefits: treaty advantages denied where arrangements chiefly aim to obtain benefits or lack genuine business activity. A resident of a Contracting State shall not be entitled to the benefits of the Agreement if its affairs were arranged so that obtaining the Agreement's advantages was the main purpose or one of the main purposes; this covers legal entities that do not have bona fide business activities and such entities may be denied treaty benefits on that basis.
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 advantages denied where arrangements chiefly aim to obtain benefits or lack genuine business activity.
A resident of a Contracting State shall not be entitled to the benefits of the Agreement if its affairs were arranged so that obtaining the Agreement's advantages was the main purpose or one of the main purposes; this covers legal entities that do not have bona fide business activities and such entities may be denied treaty benefits on that basis.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
