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Revised OECD discussion draft - BEPS Action 6: Prevent Treaty Abuse

Revised OECD discussion draft - BEPS Action 6: Prevent Treaty Abuse
Global
17 Jun 2015

On 21 November 2014, the OECD published a discussion draft which deals with follow up work mandated by the report on Action 6 (Prevent the granting of treaty benefits in inappropriate circumstances) of the BEPS Action Plan. This new discussion draft reflects the conclusions and proposals that resulted from a meeting in March 2015 and on which the Committee on Fiscal affairs is now inviting comments. Taxand is honoured to provide combined feedback from around the world on the follow up discussion draft with respect to Action 6 of the BEPS Action Plan. 

This revised drafts follows on from Part II where the OECD recognised the need for further work in relation to the Limitation-on-Benefits (LOB) rule and Collective Investment Vehicles (CIVs).

Taxand recommends that the final report on Action 6 should foresee that all CIVs set up as Undertakings for Collective Investment in Transferable Securities (UCITS), as well as all other widely-distributed non-CIVs whose characteristics are similar to those of UCITS, will automatically qualify as resident for the purpose of article 1 of the OECD Model Convention and that they will also be considered as qualified residents for the purpose of the LOB clause.

Access Taxand's full response to Revised OECD discussion draft: BEPS Action 6 >
Discover more: Access Taxand's response to Part II: OECD discussion draft on Action 6 >
Discover more: Access Taxand's response to OECD discussion draft on Action 6 >


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Keith O'Donnell
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GERMANY
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E. samantha.merle@atoz.lu

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Taxand's Take

The consultation on the prevention of the granting of treaty benefits in inappropriate circumstances is a key initiative of the BEPS Action Plan, which Taxand supports. We would like to salute the efforts of the OECD Committee of Fiscal Affairs for its continual and vast work on laying down the cornerstones for the ambitious and comprehensive Action Plan aimed at addressing base erosion and profit shifting in an open format that allows all stakeholders to provide their views. 

Taxand's Take Author

Keith O'Donnell
Taxand Board member & Taxand global real estate tax service line leader
Luxembourg

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