AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
Extrinsic Aids to Interpretation of a Tax Treaty
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....en the parties regarding the interpretation of the treaty or the application of its provisions; * Subsequent conduct of the state parties, as evidence of the intention of the parties and their conception of the treaty; * Parallel treaties, in pari materia (i.e., relating to the same subject matter), in case of doubt.- If the language used in two tax treaties (say treaties: X and Y) are same an....
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.... a tax treaty. BEPS Action Plan 6 recommendation and Multi-lateral Instrument (MLI), the new text has been added to the Preamble to reflect that the treaties are not intended for creating opportunities for double-non taxation and treaty shopping arrangements. * Mutual Agreement Procedure [MAP] - MAP helps to interpret any ambiguous term/provision through bilateral negotiations. MAP is more authe....
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....f the treaty, which clarifies borderline issues. A protocol is an integral part of a tax treaty and has the same binding force as the main clauses therein. Protocol to India France treaty contains the Most Favoured Nation(MFN) Clause. Thus, one must refer to protocol before arriving at any final conclusion in respect of any tax treaty provision. Under MFN clause a country agrees to extend the....
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.... certain items of income (such as dividend, interest income, royalties, Fees for technical services, etc) provided in India's DTAA with the third states will be available to the first (OECD) state only when all the following conditions are met; * The second treaty (with the third State) is entered into after the signature/ Entry into Force (depending upon the language of the MFN clause) of the t....