Article 12 of MLI | Avoidance of PE through Commissionnarie Arrangements

A country has a right to tax the income of its residents and the income of PE of non-resident MNEs. However, through a web of tax planning and corporate structures, many large corporates have artificially avoided the establishment of PE through Commissionnarie Arrangements (covered in Article 12 of MLI) and similar strategies. An OECD study … Continue reading Article 12 of MLI | Avoidance of PE through Commissionnarie Arrangements →

Article 3 of MLI – Fiscally transparent entities

Article 3 of the Multilateral Convention directs taxation of income of the fiscally transparent entities

Article 3(1) of MLI – Taxation of income derived by or through fiscally transparent entities

Article 3(1) is the primary provision of Article 3. It reflects BEPS Action Plan 2 measure that addresses income earned through fiscally transparent entities. To understand this provision’s genesis, we need to look into the issues of fiscally transparent entities while availing the treaty benefits. Whether treaty applies to a Fiscally transparent entity? Article 1 … Continue reading Article 3(1) of MLI – Taxation of income derived by or through fiscally transparent entities →