Principal purposes test restricts treaty benefits when obtaining those benefits was a principal purpose of arrangements. Article 29 preserves fiscal privileges of diplomatic or consular officials. It provides that paragraphs 1-3 of MLI Article 10 apply and supersede the Convention, denying treaty benefits where income is treated as attributable to a permanent establishment in a third jurisdiction and tax there is materially lower, subject to an active business exception and competent authority discretion to grant benefits after consultation. It further applies paragraph 1 of MLI Article 7 (Principal Purposes Test) to deny benefits when obtaining them was a principal purpose 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.
Principal purposes test restricts treaty benefits when obtaining those benefits was a principal purpose of arrangements.
Article 29 preserves fiscal privileges of diplomatic or consular officials. It provides that paragraphs 1-3 of MLI Article 10 apply and supersede the Convention, denying treaty benefits where income is treated as attributable to a permanent establishment in a third jurisdiction and tax there is materially lower, subject to an active business exception and competent authority discretion to grant benefits after consultation. It further applies paragraph 1 of MLI Article 7 (Principal Purposes Test) to deny benefits when obtaining them was a principal purpose of arrangements, unless consistent with the Convention's object and purpose.
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