ABC Proprietary Ltd v Commissioner for the South African Revenue Services
International Tax Law Reports (2019) 22 ITLR 153, Commentary, 155-175
38 Pages Posted: 29 Jan 2020
Date Written: January 2, 2019
A case comment dealing with the South African Tax Court's decision on the interpretation and application of a Most Favoured Nation (MFN) clause contained in the 2005 income tax treaty concluded by the Netherlands and South Africa for the avoidance of double taxation. The Tax Court ruled that evidence of the apparent intention of the States' parties to the treaty was inadmissible to displace the outcome of the clear and unambiguous words used in the MFN clause. The comment describes the domestic tax policy background that caused the dispute to arise, sets out international and domestic legal considerations for treaty interpretation of MFN clauses that influenced the court and provides background information that was before the court but not reported in the judgment.
Keywords: Most favoured nation tax treatment, tax treaty interpretation
JEL Classification: K33; K34
Suggested Citation: Suggested Citation