Treaty anti abuse: principal purposes test denies treaty benefits when benefit was a principal purpose of an arrangement. Diplomatic and consular fiscal privileges remain governed by international law and special agreements. The MLI's Article 10 anti abuse rule disapplies treaty benefits where an enterprise's income is attributed to a third jurisdiction permanent establishment whose profits are exempt and the third jurisdiction tax is materially lower; an active business exception applies and competent authorities may grant benefits after review. Article 7 of the MLI (Principal Purposes Test) denies treaty benefits when obtaining the benefit was one of the principal purposes of arrangements, unless consistent with the Convention's object and purpose.
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.
Treaty anti abuse: principal purposes test denies treaty benefits when benefit was a principal purpose of an arrangement.
Diplomatic and consular fiscal privileges remain governed by international law and special agreements. The MLI's Article 10 anti abuse rule disapplies treaty benefits where an enterprise's income is attributed to a third jurisdiction permanent establishment whose profits are exempt and the third jurisdiction tax is materially lower; an active business exception applies and competent authorities may grant benefits after review. Article 7 of the MLI (Principal Purposes Test) denies treaty benefits when obtaining the benefit was one of the principal purposes of arrangements, unless consistent with the Convention's object and purpose.
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