Interpretation & Application of Tax Treaties – Course Outline
Day 1 – Introduction to tax treaties and OECD and UN models
- Case studies (throughout the day)
- Purpose of tax treaties, kinds of treaties, how tax treaties are made, structure of tax treaties
- Tax treaty terminology
- Termination of treaties, dates – date of signature, effective date, date of entry into force
- The OECD and its work in the area of treaties
- The UN and its work in the area of treaties
- The OECD model tax treaty [NB At least one-third of the day is spent on this topic]
- The UN Model compared to the 2017 OECD model tax treaty
- Review of the US Model Treaty
- A brief overview of BEPS (Base Erosion and Profit Shifting) and the MLI (Multilateral Instrument).
Day 2 – Review of tax treaty articles
- Case studies (throughout the day)
- Review of most typical tax treaty articles including an introduction to complex treaty issues
- Treaty articles that vary from the OECD model
Double taxation – dangers and tax planning opportunities under treaties - Reference to the law and practice in specific important countries
- A brief overview of ATAD (the EU Anti Tax Avoidance Directive) as it affects treaties
- A further review the MLI (Multilateral Instrument)
Day 3 – Advanced treaty issues
- Case studies (throughout the day)
- Treaties and various entities – including transparent entities, hybrid entities, trusts, funds, cooperatives, etc., including classification of entities and the issue of residency of such entities
- Permanent establishment (PE) issues including
o When does a PE exist (advanced aspects)?
o The attribution of profits to a PE
o Transfer of assets between head office and permanent establishment
o Shipping and aircraft PEs
o Other selected PE issues - Interpretation of treaties
o The Vienna Convention
o Main principles
o Interaction between Article 3(2) and the Vienna Convention
o The OECD Commentaries
o Specific country references
o Current trends
o Important court decisions and government circulars, etc
o Update on recent court decisions - Beneficial ownership – history and current law and practice in various jurisdictions
- Extra-territorial taxation of capital gains on the sale of shares, including references to Australia, India, Kazakhstan and China
- A review of various countries’ digital services tax, ‘Google Tax’, diverted profits tax and the like – and their relationship with treaties
- A further review of ATAD (the EU Anti Tax Avoidance Directive) as it affects treaties
- The MLI (Multilateral Instrument)
- Extensive references to the law and practice in specific important jurisdictions