In 2017, as a result of a BEPS project, the general anti-avoidance rule (GAAR) was included in Art. 29(9) of the OECD Model Tax Convention. Since the OECD Model Tax Convention remains one of the main instruments used for the interpretation of existing tax treaties around the world, the inclusion of GAAR directly into the Model poses a number of questions discussed among practitioners and scholars. Through the course, these questions would be closely investigated, inter alia:

• Is there a difference in the view of abuse of treaties whether the topic is analyzed from the source state or the resident state;
• The interaction of Art. 29(9) OECD Model Tax Convention with the guiding principle included in the Commentary;
• The interaction of Art. 29(9) OECD Model Tax Convention with domestic anti-avoidance rules – what is the common approach;
• The interaction of Art. 29(9) OECD Model Tax Convention with other provisions in the treaty;
• Interpretation of tax treaties in light of Art. 29(9) of the OECD Model Tax Convention;

During the course students would obtain advanced knowledge regarding application of tax treaties` GAARs in post-BEPS world. Students would be able to apply these knowledge in future practice for solving international tax cases considering updated practice of treaties interpretation and application.

> 70% attendance requirement

Lectures, discussion of the case studies in the classroom

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Readings

In order to positively understand and be involved into discussion students required to read through the following literature:

OECD Commentaries on the Articles of the Model Tax Convention (2017): pp. 57-80 to article 1; pp. 1-6 and 169-187 to article 29

Alta Energy case - Canada v. Alta Energy Luxembourg S.A.R.L., 2021 SCC 49; Decision of SUPREME COURT OF CANADA as of November 26, 2021

M. Lang, The Signalling Function of Article 29(9) of the OECD Model – The “Principal Purpose Test”, 74 Bull. Intl. Taxn. 4/5, sec. 1. (2020), Journal Articles & Opinion Pieces IBFD

W. Schön, Chapter 12: The Role of “Commercial Reasons” and “Economic Reality” in the Principal Purpose Test under Article 29(9) of the 2017 OECD Model in Building Global International Tax Law: Essays in Honour of Guglielmo Maisto (P. Pistone ed., IBFD 2022), Books IBFD

R. J. Danon, Canada v. Alta Energy Luxembourg SARL—An Analysis Based on the Vienna Convention on the Law of Treaties in Canadian Tax Journal / Revue Fiscale Canadienne (2023) 71:2

Additionally, it is recommended to read the following materials:

K. Dziurdź, The Concept of the “Object and Purpose” in Tax Treaty Law Based on the Vienna Convention (1969) and the Principal Purposes Test Rule, 78 Bull. Intl. Taxn. 3 (2024), Journal Articles & Opinion Pieces IBFD

S. Landsiedel, The Principal Purpose Test’s Burden of Proof: Should the OECD Commentary on Article 29(9) Specify Which Party Bears the Onus?, 13 World Tax J. 1 (2021), Journal Articles & Opinion Pieces IBFD

H.T.P.M. van den Hurk, Tax Treaties and Abuse: The Effectiveness of the Principal Purpose Test and Some of Its Shortcomings, 75 Bull. Intl. Taxn. 6 (2021), Journal Articles & Opinion Pieces IBFD

L. De Broe, Role of the Preamble for the Interpretation of Old and New Tax Treaties and on the Policy of the Prevention of Treaty Abuse, 74 Bull. Intl. Taxn. 4/5 (2020), Journal Articles & Opinion Pieces IBFD

• 1. When writing a seminar paper, the introduction must contain a declaration of the use of AI. If no form of AI was used, a note to this effect is sufficient. If AI was used, the introduction must explain accordingly where and in what form.
  2. For seminar papers, increased attention will be paid to:
• Whether the processed legal status is up-to-date
• Correct/existent citations
• Correct use of abbreviations
• Comprehension
• Errors in the outline