UK and International Tax news

OECD Model Tax Convention And Beneficial Owner

Tuesday 10th May 2011

The concept of “beneficial owner” found in Articles 10, 11 and 12 of the OECD Model Tax Convention has given rise to different interpretations by courts and tax administrations. Given the risks of double taxation and non-taxation arising from these different interpretations, the OECD Committee on Fiscal Affairs, through its Working Party 1 on Tax Conventions and Related Questions, has recently issued draft proposals aimed at clarifying the interpretation that should be given to that concept in the context of the OECD Model Tax Convention.

The draft proposals have been released for discussion and include changes to the Commentary on Articles 10, 11 and 12 of the OECD Model Tax Convention.

The Committee intends to ask the Working Party to review these proposed changes in light of the comments from all interested parties which are invited by 15 July 2011 and which will be examined at the September 2011 meeting of the Working Party.

If you would like further details of these proposed changes, please contact Keith Rushen on +44 (0)20 7486 2378.

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