Limitation of benefits: treaty advantages may be denied where an entity or transaction exists primarily to obtain those benefits. Limitation of benefits permits competent authorities, by mutual agreement, to deny treaty benefits to a resident or in respect of a transaction when the main purpose of the resident's creation, existence or of the transaction was to obtain benefits not otherwise available, and authorises consultation between competent authorities to develop a commonly agreed application of this rule.
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 may be denied where an entity or transaction exists primarily to obtain those benefits.
Limitation of benefits permits competent authorities, by mutual agreement, to deny treaty benefits to a resident or in respect of a transaction when the main purpose of the resident's creation, existence or of the transaction was to obtain benefits not otherwise available, and authorises consultation between competent authorities to develop a commonly agreed application of this rule.
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