‘Company’ and ‘Shares’ Under the 2016 India-Mauritius Protocol and the U.N. Model Treaty
4 Pages Posted: 21 Aug 2016 Last revised: 13 Feb 2017
The India-Mauritius tax treaty was amended by the 2016 Protocol, which sought to bring the distributive rule on Capital Gains at par with most of India's tax treaties, which broadly follow the UN Model. However, a structural flaw in the UN Model, carried over to the Protocol puts the intended purpose of the amendment in jeopardy. This article discusses the problem, which arises from the interpretation of the terms "company" and "shares" in the Protocol and the U.N. model treaty. It also proposes a solution to the structural flaw in the UN Model.
Keywords: tax avoidance, tax treaties, Base Erosion and Profit Shifting, India, Mauritius, United Nations, Model Tax Convention, OECD
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