Principal purposes test bars treaty benefits when obtaining those benefits was one of the main purposes of arrangements. The Agreement preserves domestic anti avoidance measures and, under the Multilateral Instrument's Principal Purposes Test, denies treaty benefits when obtaining the benefit was one of the principal purposes of an arrangement, unless granting it accords with the treaty's object and purpose. Specifically, for Articles 10, 11, 12, 13 and 22, a resident is not entitled to treaty benefits if controlled by non residents or if a main purpose of creating or assigning a share, debt claim or right was to take advantage of those Articles.
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.
Principal purposes test bars treaty benefits when obtaining those benefits was one of the main purposes of arrangements.
The Agreement preserves domestic anti avoidance measures and, under the Multilateral Instrument's Principal Purposes Test, denies treaty benefits when obtaining the benefit was one of the principal purposes of an arrangement, unless granting it accords with the treaty's object and purpose. Specifically, for Articles 10, 11, 12, 13 and 22, a resident is not entitled to treaty benefits if controlled by non residents or if a main purpose of creating or assigning a share, debt claim or right was to take advantage of those Articles.
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