The OECD invites comments by 17 June 2015 on its revised discussion document, BEPS action 6: Prevent treaty abuse (see www.bit.ly/1SnmjL89). The OECD had already released a discussion draft last November that identified 20 different issues to be addressed as part of the follow-up work mandated by the September 2014 report on Action 6. This new discussion draft reflects the conclusions and proposals that resulted from a March Working Party 1 meeting.
Tax expert, Keith Brockman, commented on his blog (strategizingtaxrisks.com) that: ‘The discussion draft is very comprehensive and principle based, including additional examples from its previous draft. However, it is worth noting that the OECD would not require an approval process for application of the subjective principal purposes test (PPT) (i.e. the state may ‘wish’ to apply such process) and that the PPT would be included in the arbitration mechanism of paragraph 5 of article 25, although this issue should also be discussed as part of the work on Action 14 (making dispute resolution mechanisms more effective).’
The discussion draft and received comments will be discussed at the Working Party 1 meeting of 22–26 June 2015, when the working party will be asked to produce a final version of the BEPS Action 6 report.
The OECD invites comments by 17 June 2015 on its revised discussion document, BEPS action 6: Prevent treaty abuse (see www.bit.ly/1SnmjL89). The OECD had already released a discussion draft last November that identified 20 different issues to be addressed as part of the follow-up work mandated by the September 2014 report on Action 6. This new discussion draft reflects the conclusions and proposals that resulted from a March Working Party 1 meeting.
Tax expert, Keith Brockman, commented on his blog (strategizingtaxrisks.com) that: ‘The discussion draft is very comprehensive and principle based, including additional examples from its previous draft. However, it is worth noting that the OECD would not require an approval process for application of the subjective principal purposes test (PPT) (i.e. the state may ‘wish’ to apply such process) and that the PPT would be included in the arbitration mechanism of paragraph 5 of article 25, although this issue should also be discussed as part of the work on Action 14 (making dispute resolution mechanisms more effective).’
The discussion draft and received comments will be discussed at the Working Party 1 meeting of 22–26 June 2015, when the working party will be asked to produce a final version of the BEPS Action 6 report.
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