Prevention of treaty abuse: deny treaty benefits where principal purpose was obtaining tax advantage, subject to object-and-purpose exception. Article 28 allows extension of the Convention to Aruba or the Netherlands Antilles where those territories impose taxes substantially similar to covered taxes, subject to diplomatic notes setting commencement, modifications and conditions; termination of the Convention does not automatically terminate any extension. The MLI's Article 10 anti abuse rule denies treaty benefits where income is treated as attributable to a permanent establishment in a third jurisdiction with exempted profits and low taxation, while preserving an active business exception and permitting competent authority relief. The MLI's Article 7 Principal Purposes Test denies benefits obtained principally to secure a treaty advantage 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.
Prevention of treaty abuse: deny treaty benefits where principal purpose was obtaining tax advantage, subject to object-and-purpose exception.
Article 28 allows extension of the Convention to Aruba or the Netherlands Antilles where those territories impose taxes substantially similar to covered taxes, subject to diplomatic notes setting commencement, modifications and conditions; termination of the Convention does not automatically terminate any extension. The MLI's Article 10 anti abuse rule denies treaty benefits where income is treated as attributable to a permanent establishment in a third jurisdiction with exempted profits and low taxation, while preserving an active business exception and permitting competent authority relief. The MLI's Article 7 Principal Purposes Test denies benefits obtained principally to secure a treaty advantage unless consistent with the Convention's object and purpose.
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