Limitation of Benefits denies treaty advantages where the main purpose of an entity or transaction is tax motivated. The treaty does not affect domestic anti avoidance provisions. Treaty benefits are denied where the main purpose of creating or maintaining a resident, or of undertaking a transaction, was to obtain benefits under the treaty. The Article covers legal entities without bona fide business activities. When benefits are denied under this Article, the competent authority of the other Contracting State shall be notified.
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 denies treaty advantages where the main purpose of an entity or transaction is tax motivated.
The treaty does not affect domestic anti avoidance provisions. Treaty benefits are denied where the main purpose of creating or maintaining a resident, or of undertaking a transaction, was to obtain benefits under the treaty. The Article covers legal entities without bona fide business activities. When benefits are denied under this Article, the competent authority of the other Contracting State shall be notified.
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