HMRC have published the ‘synthesised’ texts of the UK’s double taxation agreements with China and Latvia incorporating changes as a result of the OECD Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting – commonly referred to as the Multilateral Instrument. Noteworthy changes include:
the UK-China agreement now adopts the MLI dual-resident entity rule for companies (Article 4(3) of the agreement) replacing the previous ‘place of effective management’ rule with the generally wider mutual agreement provision in the MLI. Where no agreement is reached no relief under the agreement will be available;
in both agreements the general ‘principal purposes test’ (PPT) replaces previous language around anti-abuse provisions. For example in the UK-Latvia agreement various anti-abuse paragraphs are replaced by the single PPT (see the note after Article 24 of the Latvia agreement);
on tax treaty dispute resolution the...
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HMRC have published the ‘synthesised’ texts of the UK’s double taxation agreements with China and Latvia incorporating changes as a result of the OECD Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting – commonly referred to as the Multilateral Instrument. Noteworthy changes include:
the UK-China agreement now adopts the MLI dual-resident entity rule for companies (Article 4(3) of the agreement) replacing the previous ‘place of effective management’ rule with the generally wider mutual agreement provision in the MLI. Where no agreement is reached no relief under the agreement will be available;
in both agreements the general ‘principal purposes test’ (PPT) replaces previous language around anti-abuse provisions. For example in the UK-Latvia agreement various anti-abuse paragraphs are replaced by the single PPT (see the note after Article 24 of the Latvia agreement);
on tax treaty dispute resolution the...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
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