Treaty benefit entitlement now depends on genuine commercial purpose, restricting capital-gains concessions for conduit and treaty-shopping arrangements.

Capital gains from shares acquired on or after 1 April 2017 in a company resident in a Contracting State may be taxed in that State. For gains arising during the transitional period ending on 31 March 2019, source-state taxation is capped at half the otherwise applicable rate. The transitional capital-gains concession is unavailable where affairs are arranged with the primary purpose of obtaining the benefit or where the claimant is a shell or conduit entity. Any treaty benefit may also be denied where obtaining it was one of the principal purposes of an arrangement or transaction, unless granting it accords with the relevant provisions' object and purpose.

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