Cyprus: Using the OECD Model Commentaries and Other Tools to Interpret Tax Treaties
Christos A. Theophilou 08 Apr 2021
In this article, the author discusses the interpretation of tax treaties and the use of internal and external tools as interpretive aids. In particular, he considers whether it is appropriate to rely on the commentaries to the OECD model income tax treaty as an external tool and examines the availability of established internal aids for treaty interpretation.
In this article, the author discusses the interpretation of tax treaties and the use of internal and external tools as interpretive aids. In particular, he considers whether it is appropriate to rely on the commentaries to the OECD model income tax treaty as an external tool and examines the availability of established internal aids for treaty interpretation.
The interpretation of tax treaties and double tax agreements in particular is an essential, but nonetheless controversial, part of the international tax arena. This article examines the difficulties that arise when using specific interpretive tools to arrive at the meaning of contested tax treaty language and assesses whether those difficulties should affect the weight given to those sources.
In particular, this article considers whether the commentaries on the articles of the OECD Model Tax Convention on Income and on Capital are a legally valid external interpretive tool. The analysis also considers the availability of internal tools for treaty interpretation. Ultimately, the article cautions readers about the uncertain legal status of the commentaries and suggests that recent events may help strengthen internal means of interpretation.
For similar content to our Global Guide, subscribe to our mailing list and keep up to date.
