Introduction to Arbitration

https://media.rss.com/taxbeech/feed.xml At present, the Mutual Agreement Procedure (MAP) resolves the tax issues arising from cross-border tax. It has been successful in its attempts to resolve tax matters brought by taxpayers to the competent authorities. But as per the OECD MAP statistics 2020, it is a long-drawn process. https://www.youtube.com/watch?v=j7uX9ZdUgG0&list=PLYkyV5logMkUCUKMAkwesbgVNc7Z2K-9X&index=1 ArbitrationImpact of BEPS on ArbitrationScope of Arbitration … Continue reading Introduction to Arbitration →

Article 10 of MLI – PE Triangular Case

Article 10 of the Multilateral Instrument deals with Anti-abuse Rule for Permanent establishments Situated in Third Jurisdictions, commonly known as PE Triangular cases. Before we dwell on it, beginners can view our exclusive post on Triangular cases to understand the concepts better. Provisions of Article 10 of MLI only intend to cover the Triangular cases … Continue reading Article 10 of MLI – PE Triangular Case →

Dual Resident Entities | Article 4 | Complete flowchart

Article 4 of MLI provides a tie-breaker rule for the dual resident entities for determining their tax residence. A company is easily considered tax resident in two different states simultaneously when it registers under one state’s laws but has the place of effective management in another. It is generally understood that a place of effective … Continue reading Dual Resident Entities | Article 4 | Complete flowchart →

Covered Tax Agreement | Article 2 Decision Tree

For easy understanding of the applicability of Article 2(1)(a)(ii) of MLI, we present the decision tree diagram (flow chart). It is a quick summary of Article 2 of Multilateral Instrument. As per Article 2(1)(a)(ii) of MLI, the MLI will modify only those double tax agreements that : Each Party has specifically identified and listed in … Continue reading Covered Tax Agreement | Article 2 Decision Tree →

Capital Gains from Alienation of Shares or Interests – Article 9 of MLI

OECD Model Tax Convention and the UN Model provide for taxation of capital gains under Article 13. Though it is an essential source of income, the DTAA does not define the term “capital gains.”. Article 9 of the Multilateral Instruments seeks to amend Paragraph 4 of Article 13 of the OECD model tax convention, which … Continue reading Capital Gains from Alienation of Shares or Interests – Article 9 of MLI →

Dividend Transfer Transactions – Article 8 of MLI

Article 10 of the OECD Model Tax Convention and United Nations Model Convention deals with the taxation of dividends. OECD and G20 in BEPS Action 6 report recommended the changes to be incorporated in dividend taxation provisions to remove the effects of tax abuse created by comprehensive tax planning. Article 8 of Multilateral Instruments is … Continue reading Dividend Transfer Transactions – Article 8 of MLI →

Everything about Article 7 of MLI | Treaty Abuse

Multilateral Instrument (MLI) is an instrument that implements tax treaty-related measures of BEPS. Article 7 of MLI is made by the recommendations of OECD and G20 in the BEPS Action 6 Report. Structure of Article 7 of MLI Paragraph 1 of Article 7 Paragraph 1 of Article 7 covers the principal purpose test, where the … Continue reading Everything about Article 7 of MLI | Treaty Abuse →

Article 5 of Multilateral Instruments | Application of Methods for Elimination of Double Taxation

In a typical scenario, the State of residence has the right to tax the resident taxpayer’s global income, and the State of the Source has the right to tax the taxpayer on the income received/derived by him from the State of the Source. Accordingly, the taxpayer is subject to taxation in both the State of … Continue reading Article 5 of Multilateral Instruments | Application of Methods for Elimination of Double Taxation →