https://www.taxtmi.com/caselaws?id=752900 A Cyprus tax resident receiving interest on compulsorily convertible debentures in its own name, directly through banking channels, was treated as the beneficial owner of that interest for Article 11(2) relief under the India-Cyprus DTAA. The decisive factors were unfettered control over the income, no contractual obligation to pass it on, and the bearing of foreign currency and counterparty risks. Independent management through the board and local arrangements supported treaty residence, and the absence of substantive business operations in Cyprus, or ownership by a Mauritius parent, did not displace beneficial ownership. Treaty protection therefore applied and domestic-rate taxation was not warranted. en-us Wed, 15 May 2024 00:00:00 +0530 Mon, 20 May 2024 20:26:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=752900 A Cyprus tax resident receiving interest on compulsorily convertible debentures in its own name, directly through banking channels, was treated as the beneficial owner of that interest for Article 11(2) relief under the India-Cyprus DTAA. The decisive factors were unfettered control over the income, no contractual obligation to pass it on, and the bearing of foreign currency and counterparty risks. Independent management through the board and local arrangements supported treaty residence, and the absence of substantive business operations in Cyprus, or ownership by a Mauritius parent, did not displace beneficial ownership. Treaty protection therefore applied and domestic-rate taxation was not warranted. Case-Laws Income Tax Wed, 15 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=752900