Prevention of treaty abuse: principal purposes test denies treaty benefits where benefit was a main purpose. Limitation of benefits rules deny treaty advantages where a resident's creation, existence, or a transaction had as a main purpose obtaining those advantages. Article 28A barred benefits to non individual residents or to arrangements whose main purpose was benefit acquisition. Article 28A is replaced by the MLI's Principal Purposes Test: a treaty benefit shall not be granted where it is reasonable to conclude that obtaining the benefit was one of the principal purposes of the arrangement or transaction, unless granting the benefit accords with the object and purpose of the relevant treaty provisions.
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: principal purposes test denies treaty benefits where benefit was a main purpose.
Limitation of benefits rules deny treaty advantages where a resident's creation, existence, or a transaction had as a main purpose obtaining those advantages. Article 28A barred benefits to non individual residents or to arrangements whose main purpose was benefit acquisition. Article 28A is replaced by the MLI's Principal Purposes Test: a treaty benefit shall not be granted where it is reasonable to conclude that obtaining the benefit was one of the principal purposes of the arrangement or transaction, unless granting the benefit accords with the object and purpose of the relevant treaty provisions.
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