The Interaction of Articles 6, 7 and 21 of the 2014 OECD Model Tax Convention: A Historical Analysis

(2016) 44 Intertax 8/9 651

6 Pages Posted: 19 Sep 2016 Last revised: 13 Feb 2017

See all articles by Dhruv Sanghavi

Dhruv Sanghavi

affiliation not provided to SSRN

Date Written: September 17, 2016

Abstract

The discussion regarding the interaction between Article 6 (Income from Immovable Property), Article 7 (Business Profits) and Article 21 (Other Income) of the OECD Model is not new. However, the historical documents of the Organisation for European Economic Co-operation and the Organisation for Economic Co-operation and Development, which have now been made available, throw new light on the issue. It has been argued that Article 6(4), and not Article 7(4), governs the relationship between Articles 6 and 7, therefore excluding the possibility of applying Article 7 to any income from immovable property. Therefore, it is argued, that Article 21 is the only correct distributive rule to apply in cases where the bilateral scope of Article 6 is not satisfied. This article traces the evolution of Article 6, as evidenced by the historical documents, which reveals a different intention underlying Article 6(4).

Keywords: Immovable Property, Business Profits, Other Income, Tax Treaties, History, OECD, UN

Suggested Citation

Sanghavi, Dhruv, The Interaction of Articles 6, 7 and 21 of the 2014 OECD Model Tax Convention: A Historical Analysis (September 17, 2016). (2016) 44 Intertax 8/9 651, Available at SSRN: https://ssrn.com/abstract=2840204 or http://dx.doi.org/10.2139/ssrn.2840204

Dhruv Sanghavi (Contact Author)

affiliation not provided to SSRN

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