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On April 29, 2011, the OECD's Centre for Tax Policy and Administration released a public discussion draft of proposed changes to the Commentary on Articles 10, 11, and 12 of the OECD Model Tax Convention, focusing on the clarification of the meaning of "beneficial owner" (the "Discussion Draft"). The OECD Model Tax Convention and its Commentary influence how many countries interpret their income tax treaties, so any such clarification may have broad effect. The concept of "beneficial owner" found in Articles 10, 11, and 12 of the OECD Model Tax Convention is used to determine whether the recipient of a payment is entitled to treaty benefits with respect to the payment (as opposed to being a mere agent, nominee, etc.), and has given rise to different interpretations by courts and tax...
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