Anti abuse rule for permanent establishments in third jurisdictions restricts treaty benefits when tax disparity exists; competent authority may grant relief. Article 29 preserves diplomatic and consular fiscal privileges. The Convention is superseded in specified respects by MLI provisions: Article 10 imposes an anti abuse rule denying treaty benefits where income is attributed to a permanent establishment in a third jurisdiction and a significant tax disparity exists, with an active business carve out and a competent authority discretion to grant relief after consultation; Article 7 (Principal Purposes Test) denies benefits where securing them was a principal purpose of arrangements unless consistent with the treaty'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.
Anti abuse rule for permanent establishments in third jurisdictions restricts treaty benefits when tax disparity exists; competent authority may grant relief.
Article 29 preserves diplomatic and consular fiscal privileges. The Convention is superseded in specified respects by MLI provisions: Article 10 imposes an anti abuse rule denying treaty benefits where income is attributed to a permanent establishment in a third jurisdiction and a significant tax disparity exists, with an active business carve out and a competent authority discretion to grant relief after consultation; Article 7 (Principal Purposes Test) denies benefits where securing them was a principal purpose of arrangements unless consistent with the treaty's object and purpose.
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