Dual Residence of Companies under Tax Treaties

IBFD International Tax Studies 1 (2018), 3-84.

84 Pages Posted: 13 Jan 2021

See all articles by Guglielmo Maisto

Guglielmo Maisto

Catholic University of the Sacred Heart of Milan - Catholic University of the Sacred Heart of Piacenza

Stephane Austry

CMS Bureau Francis Lefebvre

John Avery Jones

London School of Economics & Political Science (LSE) - London School of Economics

Philip Baker

Field Court Tax Chambers

Peter Blessing

KPMG Washington National Tax Practice

Robert Danon

University of Lausanne

Shefali Goradia

BMR Advisors

Johann Hattingh

University of Cape Town (UCT) - Faculty of Law

Koichi Inoue

Jones Day - Tokyo Office

Jürgen Lüdicke

PriceWaterhouseCoopers LLP - PricewaterhouseCoopers GmbH

Toshio Miyatake

Adachi Henderson Miyatake & Fujita

Angelo Nikolakakis

Ernst & Young

Frank Pötgens

VU University Amsterdam

Kees van Raad

affiliation not provided to SSRN

Richard J. Vann

The University of Sydney Law School

Bertil Wiman

affiliation not provided to SSRN

Date Written: 2018

Abstract

This article provides critical reflections on the 2017 revision of article 4(3) of the OECD Model Convention and its Commentary regarding dual residence of persons other than individuals. These changes and their implementation warrant an assessment of their desirability, including an in-depth review of their impact on other provisions of the OECD Model, as well as the (re)consideration of alternative mechanisms to resolve dual residence situations. In the light of the above, this article provides a comprehensive analysis of the evolution of rules governing dual residence of companies formed by incorporation and addresses, from a policy as well as a legal perspective, the main criticalities associated with the above-mentioned revisions, most notably the overarching legal uncertainty that such amendments may generate, the potential instances of international double taxation that may arise therefrom and the excessive discretion with which competent authorities would be entrusted in dealing with the matter, a circumstance against which taxpayers may be left with very limited judicial remedies.

Keywords: Tax Residence; Dual Corporate Residence; Tax Treaty History; Tax Treaty Interpretation; Tax Treaty Policy

JEL Classification: K10, K34, K40

Suggested Citation

Maisto, Guglielmo and Austry, Stephane and Avery Jones, John and Baker, Philip and Blessing, Peter and Danon, Robert and Goradia, Shefali and Hattingh, Johann and Inoue, Koichi and Lüdicke, Jürgen and Miyatake, Toshio and Nikolakakis, Angelo and Pötgens, Frank and van Raad, Kees and Vann, Richard J. and Wiman, Bertil, Dual Residence of Companies under Tax Treaties (2018). IBFD International Tax Studies 1 (2018), 3-84., Available at SSRN: https://ssrn.com/abstract=3741297

Guglielmo Maisto

Catholic University of the Sacred Heart of Milan - Catholic University of the Sacred Heart of Piacenza ( email )

Via Emilia Parmense, 84
Piacenza
Italy

Stephane Austry

CMS Bureau Francis Lefebvre ( email )

2 rue Ancelle
92522 Neuilly-sur-Seine Cedex
Paris
France

John Avery Jones

London School of Economics & Political Science (LSE) - London School of Economics ( email )

United Kingdom

Philip Baker

Field Court Tax Chambers ( email )

3 Field Court
Gray's Inn
London, WC1R 5EP
United Kingdom

Peter Blessing

KPMG Washington National Tax Practice ( email )

1801 K Street NW
Ste 12000
Washington, DC 20006
United States

Robert Danon

University of Lausanne ( email )

Quartier Chambronne
Lausanne, Vaud CH-1015
Switzerland

Shefali Goradia

BMR Advisors ( email )

BMR House
36B Dr. RK Shirodkar Marg
Parel Mumbai, 400012
India

Johann Hattingh (Contact Author)

University of Cape Town (UCT) - Faculty of Law ( email )

Private Bag
Rondebosch 7701
South Africa

HOME PAGE: http://www.tax.uct.ac.za/aprof-johann-hattingh

Koichi Inoue

Jones Day - Tokyo Office ( email )

Kamiyacho Prime Place
1-17, Toranomon 4-chome
Minato-ku, Tokyo, 105-0001
Japan

Jürgen Lüdicke

PriceWaterhouseCoopers LLP - PricewaterhouseCoopers GmbH ( email )

Wirtschaftsprüfungsgesellschaf
Alsterufer 1
Hamburg, D-20354
Germany

Toshio Miyatake

Adachi Henderson Miyatake & Fujita ( email )

Kojimachi HF Building, 3rd Floor
3-2-4, Kojimachi, Chiyoda-ku
Tokyo, 102-0083
Japan

Angelo Nikolakakis

Ernst & Young ( email )

P.O. Box 4500
Station B
Montreal, Quebec H3B 5J3
Canada

Frank Pötgens

VU University Amsterdam ( email )

De Boelelaan 1105
Amsterdam, 1081HV
Netherlands

HOME PAGE: http://https://research.vu.nl/en/persons/fpg-potgens

Kees Van Raad

affiliation not provided to SSRN

Richard J. Vann

The University of Sydney Law School ( email )

Faculty of Law Building, F10
The University of Sydney
Camperdown, NSW 2006
Australia
+61 2 9351 0206 (Phone)
+ 61 2 9351 0200 (Fax)

HOME PAGE: http://www.law.usyd.edu.au/about/staff/RichardVann/index.shtml

Bertil Wiman

affiliation not provided to SSRN

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